IFISA consolidator launches crowdfunding campaign

By Roger Baird on Friday 30 August 2019

Alternative Lending

MultiISA bids to raise £110,000 to fund its ISA plans.

IFISA consolidator launches crowdfunding campaign
Image source: Bruce mars from Pexels

An innovative finance individual savings account (ISA) consolidator is raising funds to sell more flexible forms of these investment products.

London-registered start-up MultiISA said it will run a self-invested ISA service, allowing customers to invest across a range of asset classes.   

The platform said its product allows investors to invest in “a wide range of assets, including peer-to-peer investments across multiple platforms in an innovative finance ISA”.

MultiISA launches a £110,000 funding target today on fundraising platform Crowdcube “to finalise the build out of the end-to-end platform, fund office space, marketing costs, regulatory fees and working capital to support our first year of operations”. 


ISA investments

The start-up said its service will bring together over 50 leading peer-to-peer platforms in a single management app, allowing customers to choose their own investments on a self-invested basis across all ISA types, providing an overview of all their ISA investments.

The platform is working with fintech firm Yodlee, which provides an application programming interface so investors will be able to see their account information from various peer-to-peer lending platforms through MultiISA.

MultiISA is led by chief executive John Mulholland, a former independent financial adviser, and Jack Crabtree, regional sales manager for Yodlee, who is also a non-executive director at the start-up.

Mulholland said: “After spending years working in financial services, it was clear to me that there was a huge disparity between the advised and non-advised investors in terms of the services available. There are up to 10 million UK consumers who are no longer able or prepared to pay the cost of traditional advice services.” 

He added: “However, no one else will have their best interests as close to their hearts, as themselves. If investors have to make their own decisions as to what investments they want to build their portfolio, then give them the freedom to do so in a ‘tax-efficient’ way. Investors make the decisions; we provide the ISA and administration.”


Types of ISA 

Customers can save up to £20,000 in this current tax year across several different types of ISAs. This can be a cash ISA, a shares ISA, an innovative finance ISA, a Help to Buy ISA, a Lifetime ISA or a mixture of all of them.

An innovative finance ISA is a riskier investment in anything from peer-to-peer lending to consumers, businesses, property and crowdfunding. As with other types of ISA, any interest you get from this type of product is not taxed. However, the fact that you are lending money means there's a chance the borrower will not repay the debt.

The then Chancellor George Osborne first announced innovative finance ISAs in 2015, which went on sale to the public a year later.

After a slow start, in the 2016/17 tax year, just 5,000 customers opened innovative finance ISAs with a total of £36m subscriptions, according to HMRC data. However, in the following 2017/18 tax year, this jumped to 31,000 customers investing £290m in the product.    

Sign up for our newsletters

Your daily 7am download of all things alternative finance and fintech.

Fintech and alternative finance headlines with an exclusive Editor's Note each week. Delivered Monday at midday.

AltFi's new weekly US newsletter breaking down the ins and outs of America's burgeoning fintech sector. Delivered Monday 9am EST/ 6am PST.