Folk2Folk snatches Funding Circle, Ratesetter and Zopa retail investors

Folk2Folk launched its Innovative Finance ISA in 2017 and has now attracted more than £41.6m in ISA funds.  

Folk2Folk says it has seen a 44 per cent year-on-year surge in ISA funds received, as Funding Circle, Zopa and Ratesetter investors transferred their funds to Folk2Folk.

Folk2Folk launched its Innovative Finance ISA in 2017 and has now attracted more than £41.6m in ISA funds, the lender said.

Innovative finance ISA lets investors use their tax-free ISA allowance while investing in peer-to-peer (P2P) lending. 

The specialist lender for UK regional small- and medium-sized enterprises said it had seen a 44 per cent uptick year-on-year in ISA funds in the tax year 2021 to 2022.

It said it had benefited from an “inflow of new customers" from Funding Circle, Ratesetter and Zopa who had transferred their IFISA.

Funding Circle, Ratesetter and Zopa have all closed their peer-to-peer platforms to retail investors.

Roy Warren, Folk2Folk managing director said: “An IFISA provides the opportunity to build up investment over time, and this is the time of year when we see people shopping around for a better deal.

“We’re seeing investors move their Cash ISAs and Stocks and Shares ISAs over to our Innovative Finance ISA.”