Iban Wallet is a modern peer-to-peer lending company that helps individuals and businesses make money by lending to pre-qualified borrowers. The company is similar to other p2p companies. However, the difference is that it does not offer a marketplace where borrowers can invest for themselves. In this article, we will look at how to invest in Iban Wallet, the benefits, and the risks involved.
Quick Facts About Iban Wallet
- A peer-to-peer lending company.
- Daily interest of 4%.
- Aims to change the world of investments.
- Offers business and personal loans.
What is Iban Wallet?
Iban Wallet is a European fintech company that is aiming to revolutionize the banking system. The company is registered in Latvia, with its head office currently in Berlin.
The company is achieving this in a very simple way. Users create one of the four accounts and deposit funds. The company then works with loan originators, who provide prequalified borrowers. As a rule, originators must do an excellent work vetting the borrowers.
Iban Wallet is different from other peer-to-peer lending marketplaces. It is different because it does not allow users to invest directly in loans. Instead, the company’s experts allocate the clients’ funds in multiple loans. This ensures that the loans are well-diversified.
Another difference between Iban Wallet and other companies is that it offers fixed returns depending on the customers accounts.
How to Invest in Iban Wallet
It is very easy to invest in Iban Wallet. You need to ensure that you meet the criteria for investing in Iban Wallet. First, you need to be above 18 years and with a bank account. Second, you need to be from one of the 37 countries. You can look whether your country is allowed to invest here.
If you meet the criteria, you can go in the company’s website and create a free account. Ensure that you enter valid information because the company will need to verify the information that you enter. You can also create this account on the company’s mobile applications, which you can download here (Android) and here (iOS).
After you create your account, you should select the account you want to have. Below are the accounts offered by Iban Wallet.
As you can see, you can create a basic account with a minimum of €1. Iban Wallet One, Market, and Dynamic have a minimum deposit of €1000, €1000, and €50,000 respectively. Also, unlike other peer-to-peer lending marketplaces, you can withdraw your funds at any time. However, the company will charge you a minimal fee when you do this.
Here is hypothetical returns of funds invested in an Iban Wallet.
What are Iban Wallet Returns and Fees?
As shown above, the four types of accounts attract different types of interest rates. The basic account earns an AER of 2.5%. Iban Wallet One, Market, and Dynamic earn an AER of 3%, 4%, and 6% respectively. Iban Wallet uses the following formula to calculate the interest rates: Final Balance at term = [Investment Amount] x (1 + Interest Rate) ^ [Term]
An advantage for using Iban Wallet is that it does not have fees.
What are the Advantages of Investing in Iban Wallet
There are several benefits you get for investing in Iban Wallet.
- An easy process of investing. You only create an account, deposit money, and start earning.
- Safe form of investing. Iban Wallet is a safe option because loans are backed by assets. The company also has a buyback guarantee, and a safeguard trust.
- Diversification. Iban Wallet is a great way of diversifying your investments.
- Withdraw any time. You can withdraw your funds at any time. All you need is to send a notification.
Tips for investing in Iban Wallet
Iban Wallet uses a model similar to that of robo-advisors like WealthFront and Betterment. You just deposit your funds and let the company’s experts do the investing for you. Here are several tips for investing in Iban Wallet.
- Invest a small part of your funds. Ideally, invest less than 10% of your funds in the company.
- Don’t withdraw early. This will attract unnecessary withdrawal fees.
- Have a long-term view.
Is Iban Wallet safe?
We are often asked whether Iban Wallet is a scam. In reality, it is not. It is a regulated company. Still, there are risks that come with investing in it.
- Company risk. Our experience tells us that companies like Iban Wallet tend to make losses. It is possible that these losses can lead to a default.
Interest rates risks. The company offers fixed loans. Therefore, if interest rates rise, there could be some problems.
Default risks. Borrowers can default intentionally or unintentionally. The company reduces this risk by diversifying the loans it invests in.
Here’s a list of countries supported by Iban Wallet. Iban Wallet allows investors from 37 countries. Iban Wallet accepts investors from many non-EU countries:
- United States of America
These are the EU countries from where Iban Wallet accepts investors:
Note that the United Kingdom is not accepted, possibly due to uncertainties around Brexit. Also Latvia and Bulgaria are not accepted.
Companies can also sign up with Iban Wallet and invest funds. This can be nice if your business has some spare funds for a period.
Iban Wallet is an excellent peer-to-peer lending company that distinguishes itself by the unique model it uses. You can give it a try by investing in some of its loans. As we always advise, you should consider the risks and diversify by investing in other assets like Bitcoin, index funds, gold, and stocks.
- Website: Iban Wallet
- Facebook: Iban Wallet
- Instagram: Iban Wallet
- Twitter: Iban Wallet
- LinkedIn: Iban Wallet
Crispus is a finance professional with more than a decade experience in the industry. Over the years, Crispus has written in-depth articles on leading platforms like CCN, Marketwatch, and Seeking Alpha. He also runs a Forex education and managed account company called WestEndFx.