Zopa has today been awarded its full bank licence, launching at a time when consumers need financial services providers to work on their behalf more than ever.
Zopa Bank will focus on better meeting the financial needs of UK customers in sectors where they have traditionally been poorly served, while also delivering an experience that matches their expectations of a digital-first company. The new bank will be launching a new set of products, starting with a fixed term savings account.
Building on its 15 year lending heritage in peer to
While customer behaviour towards and expectations of banks has been shifting over the last decade, the current crisis has put increased focus on whether the traditional players are best equipped to help people manage their finances.
Independent research commissioned by Zopa found that a fifth of UK adults (20%) said they had faced struggles contacting their bank during the coronavirus pandemic and a third (30%) said they wanted additional flexibility and better guidance from their main bank to help them during these uncertain times.
Jaidev Janardana, Zopa CEO, commented: “Now more than ever the banking industry needs innovative, agile providers who work on behalf of customers. At a time when people want great value, fair financial services products and simple, intuitive digital experience, Zopa offers consumers a compelling and credible alternative they can trust.
“Securing our banking licence enables Zopa to play a wider role in the financial lives of our customers, as well as offering much needed choice and competition to the wider market.
“Beyond the current pandemic, Zopa is uniquely placed to provide a compelling alternative to traditional banking by leveraging its significant technological and financial services expertise t
Zopa Bank will sit alongside its existing peer to peer business (Zopa Limited), as part of the overall Zopa Group.
Zopa has raised £140m, its largest funding round to date, enabling its banking entity to fulfil its regulatory capital requirements. The investment has been provided by IAG Silverstripe Partners, an investment arm of IAG Capital, the private investment group specialising in digital and technology – led businesse