Ibanwallet: a new approach to call money accounts

This post is also available in: Deutsch (German)

Within Fintech (of which p2p is a subcategory) we can observe new alternatives for overnight accounts lately. We have the well know Bondora Go & Grow, the somehow different approach from Bondster as well as p2p giant Mintos’ Invest & Access (which I did not check out to date). And now there is Ibanwallet.

Ibanwallet , an old acquantaince

During 2017 I had my first contact with Ibanwallet, as they have been fundraising on Seedrs, where they sold some equity in their company to get funding for their venture. I was in contact with the the founders ( Daniel Suero Alonso und Marc-Anthony Hurr ), but did not invest in the end. I really cannot remeber why I did not invest, but it for sure it was a red flag, otherwise I would have remembered.

Two years later and we went from the idea to a rolled out and functional product (not many start-ups even get to this stage). I have a feeling this product is just the first in a series…. Now the serious question: what service or product do they provide (it is available as an app or via website)? …..

So what is this ibanwallet?

There are two words in the name: IBAN, a number of a bank account like we are used to it and wallet. It is a newly developped bank account, with quick acces to the money, like the cash in our wallet (for those who still have a wallet and use cash of course ;)) Wow, a bank account (which we can only use through our reference account where we deposit from and withdraw to), not that game changer on the first thought ­čśë BUT, there are certainly features which are very interesting: There are 4 versions of “accounts” available: 1) a call money account with an interest rate of 2.5% per year with daily interest payments, plus three more as term deposits with daily termination option. You see them below and they pay from 3 to 6% annually with durations of up to 5 years.

Account offering on Ibanwallet

The investments are terminateable on a daily basis, but there occurs a fee. All accrued interest up to 2.5% will be lost if the account is terminated early. But never more then really accrued, so no capital loss. So, i.e. only 0.1% accrued, only 0.1% is lost. aufgelaufen, werden auch nur 0.1% storniert, man verliert also kein Kapital. If you, for example, terminate a 1 year investment after 11 months, you still get 0.25% (2.75% accrued interest minus 2.5%). On first sight not that attractive for p2p guys, but in comparison to bank accounts it is really good. Never forget the rule that liquidity has its price. If you want maximum flexibility, you get less return. Mid July I deposited 550 Euro on my ibanwallet and got like 3 to 4 cents interest daily (depends on the roundings ;)). After 10 days it looked like below (and now of course even better).

Sign up and get a Bonus

Sign up as an easy and straight forwar process which can be done within some minutes. You need a document for identification and a mobile phone number. After that you see your personal IBAN number with Ibanwallet and can fund your account from your personal bank account. I sent the money on its way in the morning and it was credited in the evening. Everything went smooth and fast. To unlock the withdrawal, you need to upload a statement of your bank account containing your name and adress. As well this step took only minutes. Use this link to register (the field promo code should be filled out directly during registry, if not let me know.) and you will be awarded 25 Euro sign up bonus, as soon as you have depositet at least 1’000 Euro (I get the bonus as well). You can do with your bonus what you like and with it you net at least 5% yield during the first year with your call money account (2.5% on 1000 Euro = 25 Euro plus 25 Euro bonus).

How does Ibanwallet earn money to pay interest?

Ibanwallet understands itself as something new and basically does the same thing as a traditional bank. But what does a bank do? Basically, a bank takes deposits from clients (= money on bank accounts) and lends it out as mortages or loans for example. The difference between what they receive from the borrowers and what they pay the depositors is called the interest difference. And this is the money the bank earned by its activities. This is just a very basic explanation, but in general very true and stands for what a bank should do.

Ibanwallet does the exact same thing. They take deposits and lend them out. But iin what do they invest in? And now it gets interesting. Ibanwallet invests the money in p2p loans. Sadly I was not able to find out in which platforms or loans. Though I know that they only invest in loans with buyback guarantee or loans which are asset backed, like property. I try to find out more about this topic and others (like controlling of liquidity etc).

Conclusion

I like the easy handling of the website and its lean design (alternatively you can use the app, which I have not until now). Everything works smoothly and as expected. If you compare interest rates with other Euro bank accounts, the return is great. But of course there are risks which you should think of (so never park your total liquidity on one account only). Ibanwallet operates in a fairly new market (p2p) and is operational for just some time as well. There can be risks (operational, market etc). It is possible as well that your money is invested with the same platforms or loans you already invested in (if you do p2p yourself). None the less I think ibanwallet is worth checking out. The team is not on the website at this stage, but above you see the links to the founders linked in pages. Daniel is a banker and entrepreneur and Marc-Anthony the Math and IT-Guy, a good combo it seems. Here you get to the sign up and the 25 Euro bonus (for at least 1’000 Euro Investment)

One Reply to “Ibanwallet: a new approach to call money accounts”

  1. I still do not understand something. Why to use this iban wallet if I can invest in p2p myself and get higher interest?
    Its not fair to compare them with bank as with iban wallet we have completely different risk level. Are my money insured like on bank accounts? I guess not. Similar are only procedures and thats all. But risk is very high and 3% interest for this risk is not acceptable at all.
    And why to use this iban wallet when Bondora Go and Grow is better and more flexible?

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