This is a guest post written by Marta Ramos, from Iban Wallet. It’s a short introduction to Iban, an online investment platform that could be a good option for portfolio diversification.
How does Iban Wallet Work?
Iban Wallet is an online investment platform which allows users to invest in different accounts with different interest rates and terms by offering a hassle-free, passive management experience. Iban’s projected returns range from 2.5% to 6%. You can find more information on the accounts here.
Iban operates through a powerful yet simple lending model. On one side, Iban gathers funds from investors which serve as loan capital. On the other, Iban has a diversified, extensive pool of loan originators that manage and provide loans to borrowers. The borrowers then pay the principal loan amounts plus interest – this interest is what gives Iban the opportunity to provide the investor with a return on the amount invested.
Although this structure seems to be fairly frequent in other investment platforms, Iban stands out by making investments available for everyone. By taking a step back and making investment products attainable and understandable for everyone, Iban democratises access to investments worldwide and helps investors preparing for the future without the stress of managing products which oftentimes they don’t fully understand.
Becoming an Iban Wallet Investor
Creating an account:
The requirements to open an account is to be at least 18 years old and be a resident in one of the countries in which Iban offers its services (available in the majority of European countries and also in the United States).
The account opening process is quite friendly and fast – in under 5 minutes the account is created and ready to use. In order to open an account, the user only needs to provide their email, contact number and an ID.
Adding funds to your account:
The minimum investment amount is as little as 1€!
To fund the account the investor can either use debit/credit card (only needs to insert card details) or choose a SEPA transfer.
Iban currently offers accounts in EUR and USD. The investor cannot have a multi-currency account but is free to choose which currency he wishes to use on his account.
Finally, opening an account has no costs, so anyone is able to start investing with Iban!
The investor can select one of the four accounts available: Iban Account, One, Market or Dynamic. These accounts have different expected fixed interest rates (up to 6% AER), minimum investment amounts and terms.
The layers of protection are almost the same in every account.
The interest is paid on a daily basis in every account Iban offers, which gives the investor a pleasant experience of seeing their account value change on a daily basis (even in the accounts with a fixed term).
Along with the web experience, Iban also has a mobile app (both iOS and Android) which allows users to manage, deposit and withdraw their funds from their mobile.
How are funds secured?
As with any investment, there are some degrees of risk. However, Iban values security above everything so we have multiple risk mitigation policies in place.
Among these mitigation policies, we have diversification – we work with an extensive pool of loan originators from various geographies, who offer multiple types of loans, return rates and deposit terms. Iban also checks, through an extensive due diligence process every loan originator, that the loan originators follow the strict risk standards we have set. On top of this, when you invest with Iban, all of the funds are automatically deposited in an EMI (Electronic Money Institution) which complies with the corresponding European Regulations.
Another way to mitigate risk is by reinforcing and building new investor protections. All of the loans Iban invests in are asset-backed. What does this mean? It means that Iban only invests in loans which have collateral – if the borrower were to fail the repayment of the loan they hold, the loan originator would redeem the property (collateral) in order to settle the debt. Furthermore, every loan we invest in is covered with a buyback guarantee, therefore, should a borrower incur a delay of 90 or more days, the loan originator would be obliged to repurchase the loan from the investor at the nominal value of the principal and the accrued interest income till the date of repurchase.
On top of the above-mentioned security layers, we also offer our safeguard trust – a provision of funds set aside on a monthly basis which would be used to cover losses that the other protections in place were not to be able to fully mitigate.
Summary on Iban
All in all, Iban is focusing on offering a different product that adds value to everyone in a very simple and intuitive way. Revolutionising the investments landscape, Iban offers a potential solution for all people who want to have an extra income but just don’t have the time or the expertise to make it happen. From the experienced investor to the regular user, we offer solutions for everyone.
Want to try it? Click here and start investing now!
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