The automated lending option offers a minimum investment of £250 to appeal to retail investors.
Peer-to-peer lender ArchOver has launched an automated investment portfolio. Branching out to a wider audience, the latest product named “Investment Plan” offers a competitive minimum investment of £250 which is significantly lower than ArchOver’s manual lending option, which requires a minimum of £1,000.
Offering up to 6.4 per cent returns through monthly interest payments, the portfolio is diversified across a minimum of ten different projects. At most, 10 per cent of the portfolio will be exposed to a single borrower. The platform will select and monitor the portfolio monthly in an efforts to minimise risk whilst offering a competitive return.
The automated option is the result of significant growth following the launch of ArchOver’s IFISA. The firm has cumulatively issued over £80m in loans to SMEs, according to AltFi Data. The company has developed its leadership team to support further growth including the release of its latest product.
Angus Dent, CEO at ArchOver, said: “We knew there was demand from potential investors who could benefit from our model but didn’t necessarily want to lend borrower-project-by-borrower-project, including investment houses that require a more diversified portfolio with cross-sector exposure. Institutions using the service will now be able to let ArchOver administer their portfolio for the first time.”
AltFi is returning to Amsterdam for its second annual Summit in the city. The inaugural event last year was a roaring success, with key figures from across Continental Europe's alternative finance and digital banking sectors highlighted. These included Jeroen Broekema, managing director of Funding Circle Netherlands, and Mieke van Engelen, head of innovative partnerships at ABN AMRO's standalone lending platform, New10.