When you invest in Iban, you initially deposit your funds into an EMI (Electronic Money Institution), authorised by the regulator of their jurisdiction. In the hypothetical case that this entity were to become insolvent, you could claim the balance of your non-invested funds from this segregated account.
Iban, through its Loan Originators, is able to diversify your investment between a number of different loans, each one with its own individual property guarantee. This means that funds corresponding to a loan entering in default could be recouped via the sale of this guarantee.
Furthermore, the Loan Originator commits to a Buyback Guarantee meaning that, if the loan enters a delay greater than 90 days, a buyback is executed where the debt is repurchased at full value at the current date. Because of this, an investor successfully protected by this guarantee would not experience a reduction in their interest return.
This buyback is executed automatically and as such the investor does not need to take any specific action for this to take place.
Finally, a Safeguard Trust protection is available to the client. This constitutes a provision of funds set aside on a monthly basis which can be used to cover any losses that the above described protections were not able to fully mitigate.
To date the aforementioned measures have ensured investors have always received their advertised rates.
Please note that no investment is risk-free. The above however constitutes the protections Iban has put in place to minimise the risk that your deposit would face.