Octopus enters P2P market via Dragonfly

Octopus enters P2P market via Dragonfly




Octopus Investments has launched a peer-to-peer (P2P) online product investing in loans sourced by Dragonfly Property Finance.

Octopus Choice will provide a middle ground between saving and stock market investing by investing in a discretionary managed portfolio of asset-backed loans.

This will allow customers to target higher interest rates than deposit accounts but with less risk and volatility than stocks and shares.
 
The product comes at a time of rapid growth and continued government support for P2P lending and follows the recent launch of the Innovative Finance Isa.
 
Simon Rogerson, CEO of Octopus Investments, said growth in P2P lending was showing no sign of slowing down.
 
“The sector presents a powerful opportunity for financial advisers to add value to their clients,” said Simon. 
 
“But it’s currently being overlooked – and we want to change this. 
 
“By working with the adviser community, we hope to help advisers play a central role in shaping the market as it continues to grow, developing a product that solves real needs for their clients.
 
“We think Octopus Choice offers an attractive solution which can empower more and more people to make their money work harder for them.”
 
Investments in Octopus Choice will initially be allocated to loans secured against residential property by taking advantage of the strong deal flow and experience of property lending at Dragonfly Property Finance, which revealed at the end of last year that it will rebrand to become Octopus Property
 
To align it interests with those of its customers, Octopus said it will also invest in each and every loan, on a ‘first loss’ basis.
 
“Not only does this show you just how confident we are in the quality of the underlying loans – it also provides investors with an extra layer of protection”, Simon added. 
 
“We want to put our money where our mouth is.”
 
Mark Posniak, Managing Director of Dragonfly Property Finance, said Octopus Choice would give investors the chance to gain exposure to residential property in their portfolio in an attractive way.
 
“The product harnesses Octopus’ innovative thinking and proprietary deal flow, via Dragonfly’s loan book and lending pedigree,” said Mark.
 
“The success and rapid growth of Dragonfly since our launch in 2009 is testament to the sustained appetite among borrowers for flexible and transparent short-term property finance.
 
“Now Octopus Choice gives investors – and their financial advisers – a straightforward way to capitalise on that demand, allowing them to invest in assets that can provide income through monthly interest payments.”
 
Octopus has launched a public phase of testing with advisers before a full version is rolled out.
 
Advisers who want to find out more or wish to take part in the pilot can register their interest at www.octopuschoice.com
 

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