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

P2P lender Zopa one step closer to digital bank launch

0
Written by: Paloma Kubiak
02/06/2017
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

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

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

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

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...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

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...

Close