Investing with Iban Wallet

Iban Wallet: comfortable investment platform

This is a sponsored post. All investments carry inherent risk. Only the investors are responsible for any possible losses they may incur. All opinions are Money Bear Club’s.

Money Bear Club has written about investment income from lending networks. This structure presents a moderate to high risk investment opportunity to generate income, without engaging with the stock market.

Iban Wallet, an investment platform, has reached out to Money Bear Club, in order to inform the readers about the opportunities it offers. Read on to find out how Iban Wallet offers investment opportunities, and what small differences separate this company from other online lending platforms.

What is Iban Wallet?

Iban Wallet is a lending platform which offers investment opportunities. Investors investing with Iban Wallet are offered projected fixed returns, and flexible investment sizes (from 1 and from 1,000 euros).

Iban Wallet offers an opportunity to earn investment income without active management from the investor’s side. All potential debtors are pre-screened before their loans are made available. Investors investing with Iban Wallet are able to just transfer a sum of 1 euro or larger, and see their investment income grow week-by-week.

Money Bear Club has interviewed Iban Wallet about it as a company, and as facilitator of comfortable investing with relatively high returns.

How did Iban Wallet start?

Iban started with the objective of providing easy access to investments on a global scale.

Looking at traditional banking we realised that people were getting very low returns on their funds – traditional banking structures are too heavy and cost inefficient to give higher returns to the user.

This meant that there was a place in the market left unfilled – a company which could give higher returns to users and a hassle-free, simple experience, which doesn’t need any active management on the user’s end, but still aims to provide the user with a fixed interest rate and daily interest payments.

How does Iban Wallet work?

The structure of Iban Wallet, and the returns on investments are rather simple. Iban Wallet gathers loans from loan originators. Investors provide the loan capital, and earn interest income from the interest paid by loan receivers.

Thinking about the traditional banking process, online lending essentially repeats it. When banking just started, the savings clients put into bank accounts would be loaned out to clients needing a loan. The loan interest payments were then used to pay the bank, and the savings on interest for clients entrusting a bank with their savings.

The financial system has gotten far more complicated in the hundreds of years of the development of banking. Online lending is the same “traditional” lending, just without the bank or a credit union acting the intermediary.

Individuals lend money to other individuals through an intermediary other than the bank. The intermediary can act as a marketplace (where investors choose themselves the people to lend to), or as an expert (choosing and analysing possible debtors themselves).

Above all, modern online lending offers the convergence of above average interest rates, investment safeguards, and the traditional and trusted model of earning an income from interest payments. Iban Wallet, a lending platform, has all of these qualities.

Even better, all of this is delivered with an  UI that fits well with the modern Fintech company that is Iban Wallet (see image below).

iban wallet app screen

Iban Wallet app interface. Used with permission from Iban Wallet. All rights belong to Iban Wallet.

Why exactly this type of fintech?

Well as stated in the previous answer, our goal is to provide easy access to returns on funds with a very easy and simple user experience. Sure, there are plenty of Fintech companies doing this, but not in the way we do it.

By creating a simple account which aims to provide a fixed return and daily interest payments, we give our users a new and easier way of getting returns on their funds – no more managing complicated portfolios and feeling like there’s a lack of deep understanding of the investments they’re making – we have experts who do this on a daily basis for our users.

Protection and a tangible asset

What are the type of investor protections that you offer? And what types of assets,
excluding property, are used as collateral by borrowers? Is it property only?

Yes, it is property only. Iban is able to diversify investments between a number of different loans, each one with its own individual property guarantee. This means that funds corresponding to a loan entering in default could be recouped via the sale of this guarantee.
On top of this we still offer a buyback guarantee meaning that, if the loan enters a delay greater than 90 days, a buyback is executed where the debt is repurchased at full value at the current date. Because of this, an investor successfully protected by this guarantee would not experience a reduction in their interest return.
Finally, a Safeguard Trust protection is available to the client. This constitutes a provision of funds set aside on a monthly basis which can be used to cover any losses that the above described protections were not able to fully mitigate.

From the perspective of investors, using only property as collateral is a beneficial choice. Loans with other assets used as collateral (shares, cars), have a much higher risk of the collateral depreciating in value, compared to real estate.

Iban Wallet and other online lenders

The main degree of separation of Iban Wallet from other peer to peer lenders is the role they take.

It’s common to see investment platforms structured as marketplaces. These platforms perform an initial check of the potential debtors, but allow the investors to choose each debtor individually. These “marketplaces” have their own benefits, but there is a serious drawback of investing with them.

When an investor himself/herself chooses the individual or business to fund, the investor protection the creditor receives is often far smaller, compared to platforms where the company running it takes on the role of an expert.

Investing with Iban Wallet is investing with strong investor protection as a safeguard against any possible credit non-payments. Iban Wallet has informed Money Bear Club that “We [Iban Wallet] value safety and trust on top of everything else […] All the loans we invest in, are asset backed and have a buyback guarantee. On top of this we still have our Safeguard Trust which offers extra security to all investors.”

What Iban Wallet and online lenders have in common is relatively high returns. Many investors know that alternative (not based on the stock market) investments can deliver higher returns. Online lending does that, and Iban Wallet offers returns far higher than interest paid on savings in bank accounts.

What are the small differences that separate Iban Wallet from other Fintech companies?

  1. Simplicity of use: we offer simple accounts which range from a projected 2.5% to 6% annual fixed interest. Also, a hassle free experience. You can use your debit/credit card or make a SEPA transfer. Our target is to provide you with a fixed interest, paid on a daily basis that you can count on without needing to keep track of your portfolio’s performance.

  2. Projected fixed returns and immediate liquidity: with an Iban account, you have the option to request to withdraw all of your funds at anytime. One, Market and Dynamic accounts have a minimum investment of €1000 and defined term. All accounts pay interest daily, which means that you get to see your money grow from day to day!

Interesting facts about Iban Wallet

Does Iban Wallet have interesting facts or hidden Easter Eggs?

We offer a multi-platform seamless experience, where our user can choose his/her favourite device and manage all interactions from there. From web to iOS and Android you only need to pick!

We have a referral program in place, where you can refer a friend and get 25€ if they invest 1000€. You can check out the referral programme by signing up for an account here.

Though we’re expanding all over the world, we’re still crazy good talent!

Oh and our favourite – say goodbye to additional commissions and fees – you’ll never see them again with us!

Iban Wallet offers an investment account almost free of charge. There are no fees for opening an account; depositing and withdrawing funds. The only fee Iban charges is an early termination fee, in the event a user cancels one of the accounts ahead of its term. That fee shouldn’t be higher than the sum of the interest a user has earned.

This way, users can compare Iban Wallet with other similar services based on their structure and quality. It frees users from having to think about the cost of use.

Returns and safeguards

Investment returns always carry a risk. It is possible to lose the whole amount of an investment. It also possible to double or triple the amount of the money initially invested.

Most investments will be somewhere in between these two extremes. Alternative investments, like peer to peer lending, carry a moderate to high risk, and relatively high returns.

Because of these conditions, the success of peer to peer lending will heavily depend on the company that facilitates it, and the safeguards it employs. And Iban Wallet offers a solid value proposition on it.

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Categories: Fintech, Investing

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