SCOTTISH fintech company, Orca Money helps savers achieve returns of 5-15% by investing in peer-to-peer lending – a type of debt financing where businesses borrow money via an online crowdfunding-style platform and pay it back. Co-founder Iain Niblock, who previously worked as an economist and analyst, sees Orca becoming the go-to name for peer-to-peer lending in the future.

Name: Iain Niblock

Age: 30

Position: Co-founder

WHAT’S YOUR BUSINESS CALLED?
Orca Money

WHERE IS IT BASED?
Edinburgh

WHY DID YOU SET UP THE BUSINESS?
WE believed in an investment asset called peer-to-peer lending which allows investors or normal people to invest or lend money without using a bank. The borrower gets quick access to capital and the investee gets fair returns. We believe in this industry and wanted more people to use it. It is quite risky for everyday people to invest so we wanted to make the process easier.

We raised £574,000 to grow the business over the next 18 months. We plan to spend this on increasing the value of our products and to launch an ISA next month. The ISA launch is an industry first and we are partnering with it on another Scottish business – ShareIn – to allow more people to use it.

HOW DOES IT WORK?

WE want to allow people to invest in two portfolios we have created. The investor can deposit funds in the Orca platform and invest in peer-to-peer lending.

We have had positive feedback. It is a concept people can understand. Peer-to-peer lending is hard to access but Orca makes it simple for people to do. We have had strong feedback on the ISA too. The major problem with ISAs is that you can only open one ISA per tax year so it might tie people to funding circle loans.

HOW IS IT DIFFERENT FROM COMPETING BUSINESSES?

IN the market we are an aggregator. We have a large number of players all offering their own individual products. We let consumers be on one platform and can build portfolios. It is a unique proposition.

WHAT IS YOUR TARGET MARKET?

THE target is really anyone wanting to grow their wealth. The minimum investment is currently £1000 but we are reducing it to £100. We have attracted an audience who are over the age of 45 who are investing for the long term. The average investment is £5000. It is mostly male investors at the moment but we are seeking more women.

There are two types of people who use the service. The first is people who have got money in investment or are saving. In saving interest is low and you may get 0.5% on your savings in the bank. Investing is a bigger risk but if done correctly has higher returns. There are also those interested in equities and invest in the stock market. There is strong volatility in this market. Not everyone is comfortable with peer lending but the fluctuations are not subject to what is going on in the market.

WHAT DO YOU ENJOY MOST ABOUT RUNNING THE BUSINESS?

I ENJOY the variety. I like doing different things and meeting different people. I like thinking of new ideas and strategies to make the business work. The UK is a good place [for fintech businesses]. We have a friendly regulator, the FCA [Financial Conduct Authority], which is a supporter of innovation. Peer-to-peer lending is now regulated.

Scotland is small enough where you get the community spirit but big enough where big contacts and players can help the business. London is also close by. Being based in Scotland is a lower cost to London – if it was the same cost it would be better to be based in London.

WHERE DO YOU HOPE THE BUSINESS WILL BE IN 10 YEARS’ TIME?

I SEE the business growing and more people investing. I see Orca developing into a hub for peer-to-peer lending and becoming the go-to name in this. As I said, we are an aggregator in the market.

We would love to expand into the EU. Perhaps in the finance business like big banks then Brexit is bad because it has strict regulations. But peer lending is newer and less regulated so it isn’t really much of a concern for us. Investors might be less interested in UK lending markets. I haven’t seen the impact of this yet but we could if we expand into the EU.