Global money exchange app turned bank now offering property ISA to users via fintech partnership.
Revolut, the fast-growing digital only banking app, has announced a partnership with property investment platform Bricklane. Users of the Revolut app will have Bricklane’s tax-efficient investment offering flagged to them whenever they next sign in.
A Revolut spokeperson told AltFi that the partnership will be rolled out fairly slowly, but that in time users will be able to locate Bricklane within the app's "what's new" section, which contains details of its partnerships.
Bricklane is an online, ISA-wrapped property investment channel, with a minimum investment amount of just £100. Investors get exposure to a portfolio of properties in locations of their choosing, and earn rental income in addition to benefiting from any capital appreciation in those properties.
Bricklane shares are held by a custodian bank, and investors are protected against the risk of its insolvency for up to £50k by the Financial Services Compensation Scheme (FSCS). It's important to note, however, that this protection does not cover investors against the risk of their investments underperforming.
Technology partnerships of this kind appear to be a key strategy for Bricklane, which struck a similar deal with online property hub Zoopla in September of last year.
For Revolut, this is all part of its transition from a money exchange tool into a full-blown digital banking service. The disruptor made waves in February with the unveiling of a new current account offering and chatbot.
In an email to users yesterday, Revolut pointed out that the average easy access Cash ISA currently stands at the historic low of 0.73 per cent, according to moneyfacts. It goes on to say that money invested in a Property ISA five years ago could have grown four times more than it would have “if left in a bank account”.