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

Peer-to-peer lender Zopa eyes digital bank launch

0
Written by: Paloma Kubiak
17/11/2016
Peer-to-peer lender Zopa has announced plans to launch a digital-only bank in a bid to enhance its savings and borrowing products.

One of the oldest and largest peer-to-peer lenders, Zopa said it planned to launch a “next generation” bank where it intends to offer deposit accounts, revolving credit products and overdraft alternatives to borrowers.

It will continue to offer unsecured personal loans and, as is the case now, the peer-to-peer arm won’t be covered by the Financial Services Compensation Scheme (FSCS), but the new deposit account for savers will.

Zopa confirmed it is not planning to launch current accounts or open bank branches.

While it is early days yet as Zopa needs to apply for both a banking licence from the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA), the application is expected to take up to two years.

Jaidev Janardana, CEO of Zopa, said he wants to launch a next generation bank to drive greater choice for borrowers, savers and investors, adding that it is well placed to do so: “The regulatory authorities in the UK have created an environment that encourages innovation, the adoption of new technologies and an increase in competition in the banking sector.

“Zopa has a history of creating innovative retail-facing financial services, driving consumer choice and transparency. We are responding to the positive regulatory environment and building on our experience to bring yet more choice to the market.”

Zopa launched in 2005 and so far it has lent more than £1.8bn. It had a record month in October, finally achieving profitability in September 2016.

See YourMoney.com’s Peer to peer lending: where should I start and what are the risks? for more information.

Related Posts

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.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

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.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week