Investor protection

We take investor protection very seriously, our risk mitigation policy includes several security layers to help protect investors.

Risk management

Broad diversification

Have you ever heard of the classic risk management expression "don't put all of your eggs into one basket"? Diversification is an important component of reaching long-term financial goals while minimizing risk. At Iban, we offer higher levels of diversification since we divide investments between different loan originators. Our products offer different rates of return and deposit terms. And the best of all? It happens automatically!

Extensive due diligence

There are typically several loans associated to your Iban accounts. Each loan is carefully assessed by our risk team prior to be accepted by Iban. Before accepting the loan, we execute a due diligence procedure for each prospective Loan Originator. We perform thorough analysis of financial statements, management quality, underwriting policy, credit scoring, investment portfolio performance, and data accuracy to ensure that the Loan Originator follows the strict risk standards we have set for Iban. After the launch of the partnership, we continue monitoring the investment for risks on an ongoing basis. Only under 1% of all applicants are selected for a loan: our selective applicant process, careful analysis of credit scores and detailed evaluation of the collateral, our low acceptance rates reinforce the safety of Iban accounts.

100% track record

All our accounts offer a fixed interest rate, regardless of the amount, term and investments made on loans. We can offer a fixed interest rate because we offer multiple protections to our investors. All our loans are backed by property, have a Buyback Guarantee and a Safeguard Trust which has covered all bad loans since it launched. This means not a single investor has lost money.

Investor protection

Asset-backed loans

Designed specifically to offer investors an asset-secured investment. All our loan investments offer our investors the opportunity to receive fixed returns over an agreed investment term, with capital being returned at the end of your chosen investment period with an interest paid daily. Until now these attractive asset-backed loans were typically available to banks and institutional investors.

Investment underwriting policies

On an individual loan level, the loan originator issues loans in accordance with their own established underwriting and credit scoring policies, although are supervised by Iban. These include not only the industry standard processes, but also series of advanced checks - identity, credit, affordability, and fraud - to ensure borrowers are creditworthy. The exact underwriting policy undertaken by each company may differ, but the main principles are the same: we only partner with loan originators that have developed consistent scoring models for borrower evaluation when issuing warranty loans and use data validation with third-party data sources, such as credit bureaus, when possible; In the process of evaluating the mortgaged backed loans, we look not only at the formal policies, but also at their implementation, making sure that it also lives up to our rigorous standards.

Buyback guarantee

To protect investors, all Loan Originators have a Buyback Guarantee on all loans. The Buyback Guarantee means that if the payback is delayed by more than 90 days, the Buyback Guarantee will repurchase the investment for the nominal value of the principal and the accrued interest till the date of repurchase. This is all done automatically and the interest rate of the investment product will not be affected whatsoever. Meaning investors receive a fixed interest rate! Loan Originators typically receive higher interest rates than the rate they offer to Iban. The difference covers administrative and marketing costs, as well as constitutes the profit margin of the Loan Originators.

Safeguard Trust

The Safeguard Trust is a provision capital account with reserves which provides investors with protection in case any Loan Originator fails to administer the investments. To fund the Safeguard Trust, a proportional monthly balance is set aside without affecting your investment. We collect that amount to hold in the trust for investors. The Safeguard Trust is designed to provide cover in case of default of any loan originator. This reduces your chances of losing funds at Iban. Therefore, in the unfortunate event any loan or Loan Originator defaults, your money is first backed by the asset given as collateral to the loan, a Buyback Guarantee and finally our Safeguard Trust.

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Investment accounts with interest paid daily. Start with fixed 2.5% AER and go up to 6% AER.

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