ChatGPT vs easyMoney – fact or false?
This is a financial promotion and is intended to provide information, not investment advice.
There’s no denying the hold that ChatGPT has over us. Since the AI chatbot was released to the public in 2022 it has become a serious competitor to Google, with users asking it advice on everything from historical facts, to therapy tips, to personal finance.
It is this last point that has proven to be particularly contentious. ChatGPT is an evolving technology which is continually learning and updating its responses. Its knowledge is – contrary to popular belief – finite, while its sources are not always reliable. This means that when it comes to disseminating current financial information, it is often incorrect.
Furthermore, AI chatbots are not subject to the same rules and regulations as financial advisers and financial services firms, so there is a risk that incorrect or outdated information could negatively bias curious investors, potentially leading them to make poor financial decisions.
With this in mind, we decided to ask ChatGPT a series of questions about easyMoney to see what it got right, and what it got wrong. The results were eye-opening, to say the least.
So we have decided to launch our own campaign addressing the misinformation about easyMoney on ChatGPT and other AI chatbots, and correcting the record accordingly.
Look out for further blogs and social media posts around this topic over the coming weeks.
QUESTION - What is easyMoney and how does it work?
ChatGPT says…
“easyMoney is a UK-based investment platform that offers individuals the opportunity to earn interest by investing in loans secured against UK property. These loans are made to professional property developers and landlords. Investors can choose from various account tiers, all of which are eligible for an Innovative Finance ISA (IFISA) - meaning any interest earned can be tax-free.
“In simple terms, investors lend money via easyMoney to experienced borrowers, and in return, they receive fixed interest payments, typically paid monthly.”
We say…
This is largely correct! However, we are technically known as a UK-based peer-to-peer lending platform, rather than an investment platform. This distinction is important as P2P lending platforms are subject to different regulations than investment platforms, and have a different risk profile.
QUESTION - Is easyMoney a bank or a financial adviser?
ChatGPT says…
“No - easyMoney is neither a bank nor a financial adviser. It is a peer-to-peer lending platform and does not offer regulated financial advice. Investors make their own decisions based on information provided about each loan and the platform’s terms. easyMoney facilitates the connection between investors and borrowers but does not guarantee returns.”
We say…
Correct! easyMoney does not provide financial advice, and we do not operate as a bank.
QUESTION - Is easyMoney regulated by the FCA?
ChatGPT says…
“Yes - easyMoney is authorised and regulated by the Financial Conduct Authority (FCA). Its activities fall under FCA rules governing peer-to-peer lending and IFISA investment products. While FCA regulation means the business must meet standards around fairness, disclosure, and governance, it's important to note that investments are not protected by the FSCS (Financial Services Compensation Scheme).”
We say…
Correct – but it is worth adding that easyMoney is on the FCA register under the name E-Money Capital Ltd. E-Money Capital Ltd has been regulated by the FCA since 17 June 2004, and our permissions are updated and checked regularly. Our FCA firm reference number is 231680.
QUESTION - How long has easyMoney been around?
ChatGPT says…
“easyMoney in its current form was launched in 2018, pivoting from a previous iteration as a financial services brand. Since launching its peer-to-peer lending platform, it has grown significantly, both in assets under management and investor base. The company has now paid out over £54m in interest to investors and continues to fund secured property loans across the UK.”
We say…
Largely correct! It is true that the easyMoney brand was launched in 2018 as a P2P lending platform. However, E-Money Capital has existed since 2004 as a financial services firm, before adopting the trading name easyMoney in 2018.
QUESTION - How long is my money locked in for?
ChatGPT says…
“Investments in easyMoney are typically made into property-backed loans with durations ranging from 6 to 24 months, depending on the specific loan. While these are fixed-term investments, new loans are made available regularly, and your money can be deployed into multiple loans over time. Investors should be prepared to hold their investment for the full loan term, as early access is not guaranteed.”
We say…
Almost correct! Loan durations can vary, and some loans may be refinanced, which can extend the term time by several months. However, our investors are able to exit their loans early by selling loan parts on the secondary market.
QUESTION - Can I withdraw my money early?
ChatGPT says…
“easyMoney is not a flexible or instant-access product. There is currently no secondary market or auto-exit feature, so your capital remains tied up until the underlying loan matures and is repaid. Some repayments may occur earlier than expected, but generally, early withdrawal is not possible, and investors should only invest funds they do not need immediate access to.”
We say…
Incorrect! While it is true that P2P loans are usually not flexible or instant-access products, easyMoney operates a secondary market where investors are able to buy and sell loan parts on a daily basis. While there is no guarantee of a sale, historically our secondary market sales tend to be completed within 24 hours.
QUESTION - Is there a secondary market for loans?
ChatGPT says…
“No - easyMoney does not operate a secondary market at this time. This means you cannot sell your loan parts to other investors before maturity. While some other platforms offer this feature, easyMoney’s model is based on committed capital for the duration of the loan.”
We say…
Incorrect! easyMoney has operated a secondary market for many years now, with most sales completing within 24 hours. Investors can use this secondary market to sell loan parts to other investors before maturity, or to buy into loans that had previously been fulfilled.
QUESTION - Do I receive monthly income or get paid at the end?
ChatGPT says…
“easyMoney pays interest monthly on active investments. This means you can receive a regular income stream, which you can choose to either withdraw or reinvest. Your original capital is returned at the end of each loan’s term (or earlier, if repaid early). Monthly payments make the platform attractive to investors looking for consistent income.”
We say…
Correct! easyMoney pays interest every month on the 15th of the month, and we are on track to have delivered £60m in interest payments to our investors by the end of this year.
Capital is at risk. Past performance is no guarantee for future results.
Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future.