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P2P lender Zopa to launch a bank

Lana Clements
Written By:
Lana Clements

P2P lender Zopa has received its banking licence and now plans to create a hybrid digital bank.

The provider is set to launch a range of products and services next year to stand alongside its p2p loans and investments.

New offerings are to include a fixed term savings product covered by the Financial Services Compensation Scheme (FSCS), a credit card and money management app.

Zopa said all products have been designed to address some of the gaps and frustrations that customers have with their current products.

The p2p lender aims to “redefine banking” by giving customers a fair deal as standard, with no catches like sign-up offers that aren’t available to existing customers.

Zopa said it has no current plans for mortgages.

The firm has a bank licence with restrictions and will be granted a full licence once it meets the conditions set by the regulators in the current mobilisation phase.

Jaidev Janardana, chief executive of Zopa, said: “Acquiring our banking licence is the starting point for Zopa to become a major force in retail banking.

“When we pioneered the peer-to-peer lending model globally in 2005, we did so by listening to customers and creating a better product for them.

“We will bring the same focus to our banking products – drawing on tech innovation, our values of fairness and transparency, and better customer service to help even more people to feel-good about money.”