You are here: Home - Saving & Banking - News -

P2P lender Zopa one step closer to digital bank launch

Written by: Paloma Kubiak
Peer-to-peer lender Zopa has secured multi-million pound investment to help fund its digital banking arm.

One of the oldest and largest peer-to-peer lenders, Zopa said it had secured £32m funding which will finance its banking infrastructure, as it prepares to submit its bank licence application later this year.

In November, Zopa announced it planned to launch a “next generation” bank, intending to offer deposit accounts, revolving credit products and overdraft alternatives to borrowers in a bid to give UK consumers more choice in financial services.

And now it adds it plans to offer Financial Services Compensation Scheme (FSCS) protected deposit accounts for savers as well as peer-to-peer investments such as Innovative Finance ISAs (IFISA), personal loans, car finance, and credit cards. However, the peer-to-peer arm and credit products won’t be covered by the FSCS.

From 15 June this year, Zopa will offer the IFISA though the peer-to-peer business and it hopes to be able to launch the bank in the second half of 2018.

Jaidev Janardana, Zopa CEO, said: “Zopa’s vision has always been to make money simple and fair for consumers, providing our customers with better value, better service, and greater choice. This investment gives us additional resources to continue our growth, support the launch of our next generation bank, and bring our award-winning products to even more people in the UK.”

Zopa launched in 2005 and following a record month in October 2016, it reached profitability in September 2016. In January this year it became the first European peer-to-peer lender to make £2bn worth of loans.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Fixed rate popularity hits record high

The proportion of borrowers electing to fix their mortgage rate has hit the highest level on record, while tracker deals...