{"id":7473,"date":"2020-07-04T08:30:00","date_gmt":"2020-07-04T08:30:00","guid":{"rendered":"https:\/\/savingsforfreedom.com\/?p=7473"},"modified":"2020-11-04T18:12:44","modified_gmt":"2020-11-04T18:12:44","slug":"iban-wallet-platform-risk-analysis","status":"publish","type":"post","link":"https:\/\/savingsforfreedom.com\/blog\/2020\/07\/04\/iban-wallet-platform-risk-analysis\/","title":{"rendered":"Iban Wallet: Platform Risk Analysis"},"content":{"rendered":"
Before reading about Iban Wallet platform risks, make sure you are aware of Iban Wallet: Platform Pros and Cons<\/a><\/strong>. That is crucial to assess the following information in the proper manner.<\/em><\/p>\n\n\n\n Iban Wallet is a global online marketplace for investment. Iban Wallet acts as an intermediary to the lending process, providing the necessary technology to allow lenders to invest funds, and loan originators to access capital. <\/p>\n\n\n\n What loan originators do is allow for credit rights to be purchased. In short, the returns investors make come from the purchase of credit rights, technically known as \u201ccredit receivables\u201d. You, as investor, allocate your money into a “package” of loans already issued by the loan originator and, in fact, purchasing rights on the interest generated by such loans with a price cap of 2.5% up to 6%.<\/p>\n\n\n\n Do you understand now why Iban Wallet is different from the P2P lending model? Let\u2019s make it more clear: loan originators underwrite loans and issue them to borrowers. When you invest through Iban Wallet, the loans have already been issued. The loan originators are already contractually bound to the loans, they are not waiting for enough capital to be raised to fund a specific number of project. In fact, the loan originator aggregated a large number of individual loans into a large loan package that then makes available for Iban Wallet to manage.<\/p>\n\n\n\n While this results on a lower interest rate than what you traditionally find on P2P lending platforms, it also enables the most interesting value proposition and differentiation of Iban Wallet in the market: to offer a higher degree of liquidity to investors<\/strong>, as they are able to request a withdrawal of their funds at any time (keep in mind that an early cancellation fee may apply if funds are withdrawn before their term on particular investment products). <\/p>\n\n\n\n The above description makes transparent the particular interests of all stakeholders involved:<\/p>\n\n\n\n To date Iban Wallet states an impressive 100% non-default track record. But considering that Iban Wallet accounts offer a (projected) fixed interest rate, regardless of the amount, term and investments made on loans, it makes sense that through diligent financial management is capable of offering multiple protections to its investors. Again, you are exchanging interest for immediate liquidity. <\/p>\n\n\n\n This is not assurance for the future, it only means that the measures in place presented below have ensured that investors have always received their advertised rates. But remember that no investment is risk-free.<\/p>\n\n\n\n The company states that all loan originators that work with Iban Wallet are audited, indicates that non-invested funds are deposited on a segregated EMI (Electronic Money Institution), regulated by the ECB (European Central Bank) and loans are asset-backed by collateral. However, without independent external audits available, all the information presented before is marketing. Take that into consideration before investing.<\/p>\n\n\n\n Before accepting a new loan originator, Iban Wallet executes a due diligence procedure to access the following main points:<\/p>\n\n\n\n When you invest in Iban Wallet, your funds go into an EMI (Electronic Money Institution), regulated by the European Central Bank. In the hypothetical case that Iban Wallet becomes insolvent, you could claim the balance of your non-invested funds from this segregated account. But why non-invested funds are stored with an electronic money institution, instead of a traditional bank with proper insurance schemes? Probably the reason is cost.<\/p>\n\n\n\n Iban Wallet states that all loan investments accepted from loan originators are asset-backed. This means that funds corresponding to a loan entering in default could be recouped via the sale of this collateral.<\/p>\n\n\n\n This publication was updated based on changes in June 2020 that removed the Buyback Guarantee and Safeguard Trust previously available. From now on, in the unfortunate event any loan originator defaults, investor money is only backed by the asset given as collateral to the loan.<\/em><\/p>\n\n\nWhat is Iban Wallet?<\/h2>\n\n\n\n
What that means for investors?<\/h2>\n\n\n\n
Iban Wallet Ecosystem Incentives<\/h2>\n\n\n\n
<\/a>\n<\/div>\n\n\n\n
How Iban Wallet Protects Investors?<\/h2>\n\n\n\n
Iban Wallet Loan Originator Due Diligence<\/span><\/h3>\n\n\n\n
Segregated Accounts in EMI<\/span><\/h3>\n\n\n\n
Asset-backed Loans<\/span><\/h3>\n\n\n\n
<\/a><\/div>
iban Wallet: A Warning Message<\/a><\/h2>
What to learn more about Iban Wallet?<\/h2>\n\n\n\n