Cocoon, already the largest shareholder in wealth management platform Novia, has led a £400,000 investment round alongside leading fintech angels and investors in Goji.
Goji is a digitally driven investment execution and administration platform that focuses solely on the P2P lending sector. It uses API-driven technology to simply integrate with P2P lending platforms. Using Goji’s hosted back office technology and operational support, Goji’s first P2P lending clients include Assetz Capital, ArchOver and Landbay, who will be able to:
- Offer complex and fully optimised IFISA products, supported by dedicated and expert operational capability, therefore saving platforms the time, cost and distraction associated with developing an in-house solution.
- Minimise the pain of ISA administration, allowing P2P lenders to manage the seasonality of investment products.
- Offer new, alternative products as they come online, both directly to consumers and via financial advisors, wealth and asset managers.
UK P2P lending reached £2.4bn in 2015 making the IFISA a lucrative proposition for P2P lenders who are seeking to fuel this rapid growth and an attractive product for investors as yields can reach in excess of 10 percent on many platforms. The opportunity is also predicted to grow further, with the industry’s annual origination volumes set to hit $24bn by 2020, according to Morgan Stanley.
While Goji’s initial focus is on the IFISA, its future execution and investment administration propositions will enable P2P lending platforms to access new investor markets, including pensions and advised markets.