A challenger investment app has today launched two ISAs as it looks to disrupt the “herd mentality” of UK investors. Lightyear, founded in 2020 by two former Wise executives, is looking to take on established players like Hargreaves Lansdown and AJ Bell in the competitive UK investment market.
The challenger app, which has raised $35 million to date and is backed by Virgin Group and Mosaic Ventures, is also competing against the likes of Robinhood and Revolt.
Lightyear originally launched in the UK in 2021 but relaunched in the UK last year, under the name Lightyear UK, after being granted approval by the Financial Conduct Authority (FCA).
It had previously been operating in the UK as an appointed representative of FCA-regulated RiskSave Technologies.
The FCA regulatory approval means it can launch its own investment products in its UK home market.
Lightyear has today launched a stocks & shares ISA and a cash ISA, complementing its general investment account and business account.
Lightyear claims it offers lower fees and more flexibility than traditional rivals. However, it will face stiff competition from deep-pocketed and well-established rivals. The rate on Lightyear’s cash ISA is 4.75 per cent. Lightyear is currently in 22 European markets and regulated across the EU by Estonia’s financial supervisor.
Wander Rutgers, COO and UK CEO, Lightyear, said:
“At the moment the market is a lottery: most Brits sleepwalk into this lottery by opening an ISA with whoever they’ve been banking with since they were a kid.
“There’s a real herd mentality where everyone believes the right thing is to save and invest with an incumbent bank or broker, which means people rarely shop around and just accept whatever rate they’re given or whatever fee they’re hit with.”
Would you like to write the first comment?
Login to post comments