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{{Use dmy dates|date=November 2019}}
{{Use dmy dates|date=November 2019}}
{{Infobox company
{{Infobox company
| name = Zopa Limited
| name = Zopa Bank Ltd.
| logo = Zopa_Corporate_Logo.svg
| logo = Zopa_Corporate_Logo.svg
| logo_size =
| logo_size =
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| genre =
| genre =
| products = [[Peer-to-peer lending|P2P lending]],<ref name="NewYorkTimes2014June09ScottMark">{{cite news|last1=Scott|first1=Mark|title=A Lift for One of London's Financial Tech Start-Ups|url=https://dealbook.nytimes.com/2014/06/09/boost-for-one-of-londons-bevy-of-financial-tech-start-ups/|access-date=9 March 2017|agency=The New York Times Company|issue=DealBook|work=New York Times|date=9 June 2014|location=New York, N.Y., United States|page=B3|language=en}}</ref> [[retail banking]]
| products = [[Peer-to-peer lending|P2P lending]],<ref name="NewYorkTimes2014June09ScottMark">{{cite news|last1=Scott|first1=Mark|title=A Lift for One of London's Financial Tech Start-Ups|url=https://dealbook.nytimes.com/2014/06/09/boost-for-one-of-londons-bevy-of-financial-tech-start-ups/|access-date=9 March 2017|agency=The New York Times Company|issue=DealBook|work=New York Times|date=9 June 2014|location=New York, N.Y., United States|page=B3|language=en}}</ref> [[retail banking]]
| revenue = {{increase}} £222M <ref>{{Cite web|url=https://www.cnbc.com/2024/11/14/zopa-sees-profit-doubling-as-it-eyes-2025-current-account-launch.html|title=Zopa Bank reports first full year profit |website=www.cnbc.com|date=14 Nov 2024|language=en-GB|access-date=2024-11-14}}</ref>
| revenue =
| revenue_year = 2023
| operating_income =
| net_income =
| net_income = {{increase}} £15.8M
| net_income_year = 2023
| owner =
| owner =
| num_employees =
| num_employees =
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}}
}}


'''Zopa Bank Ltd.''' ({{IPA-cen|ˈ|z|oʊ|p|ə}}<ref>{{Cite web|last=Zopa|title=Why you should join Zopa: a message from our new Chief People Officer|url=https://www.youtube.com/watch?v=ZFmlKjf69e0|url-status=live|archive-url=https://web.archive.org/web/20240130014925/https://www.youtube.com/watch?v=ZFmlKjf69e0|archive-date=2024-01-30|date=2021-10-15|access-date=2024-01-30|website=YouTube}}</ref>) is a British [[neobank|online bank]] which offers deposit accounts, personal loans and credit cards. It began as the world's first [[peer-to-peer lending]] company in 2005 and gained a full banking licence in 2020. The peer-to-peer side of its business closed in December 2021.
'''Zopa''' is a British financial services company which began as the world's first [[peer-to-peer lending]] company in 2005 and later gained a banking licence.


==History==
==History==
Zopa was launched in the UK in March 2005 as an arranger of peer-to-peer lending, connecting investors with individuals seeking loans.<ref>{{Cite news|last=Prosser|first=David|title=Happy Birthday Zopa, The Inventor Of P2P|language=en|work=[[Forbes]]|url=https://www.forbes.com/sites/davidprosser/2015/03/06/happy-birthday-zopa-the-inventor-of-p2p/#63936e743a76|access-date=2018-04-11}}</ref><ref name="BBC2005March07">{{cite news|date=7 March 2005|title=Q&A: Online lending exchange|language=en|work=[[BBC News]]|publisher=BBC|location=United Kingdom|url=http://news.bbc.co.uk/1/hi/business/4325761.stm|access-date=4 July 2016}}</ref> It was founded in [[Buckinghamshire]] in 2004 by a team from the internet banking company [[Egg Banking]].<ref name="FinancialTimes2015August14EvansJudith">{{cite news|last1=Evans|first1=Judith|date=14 August 2015|title=My Money — Giles Andrews, Zopa chief|language=en|publisher=[[Financial Times]]|agency=Nikkei|url=https://www.ft.com/content/a27d55f4-4037-11e5-b98b-87c7270955cf|access-date=8 March 2017}}</ref><ref>{{Cite web|title = Zopa opera|url = http://www.computing.co.uk/ctg/analysis/1863087/zopa-opera|access-date = 2015-10-03|website = computing.co.uk|date = 6 September 2007}}</ref>
Zopa was launched in the UK in March 2005 as an arranger of peer-to-peer lending, connecting investors with individuals seeking loans.<ref>{{Cite news|last=Prosser|first=David|title=Happy Birthday Zopa, The Inventor Of P2P|language=en|work=[[Forbes]]|url=https://www.forbes.com/sites/davidprosser/2015/03/06/happy-birthday-zopa-the-inventor-of-p2p/#63936e743a76|access-date=2018-04-11}}</ref><ref name="BBC2005March07">{{cite news|date=7 March 2005|title=Q&A: Online lending exchange|language=en|work=[[BBC News]]|publisher=BBC|location=United Kingdom|url=http://news.bbc.co.uk/1/hi/business/4325761.stm|access-date=4 July 2016}}</ref> It was founded in [[Buckinghamshire]] in 2004 by a team from the internet banking company [[Egg Banking]].<ref name="FinancialTimes2015August14EvansJudith">{{cite news|last1=Evans|first1=Judith|date=14 August 2015|title=My Money — Giles Andrews, Zopa chief|language=en|publisher=[[Financial Times]]|agency=Nikkei|url=https://www.ft.com/content/a27d55f4-4037-11e5-b98b-87c7270955cf|access-date=8 March 2017}}</ref><ref>{{Cite web|title = Zopa opera|url = http://www.computing.co.uk/ctg/analysis/1863087/zopa-opera|access-date = 2015-10-03|website = computing.co.uk|date = 6 September 2007}}</ref>


Zopa grew steadily<ref>{{Cite web|url=https://www.verdict.co.uk/p2p-lending-industry-grow-up/|title=P2P lending: where will the P2P industry go next? - Verdict|website=www.verdict.co.uk|date=19 February 2018|language=en-GB|access-date=2018-04-11}}</ref> in the years prior to the [[financial crisis of 2007–2008]]. It navigated the period with no losses to investors' capital and only a small dip in returns during 2008.<ref>{{Cite news|last=Ficenec|first=John|date=2015-07-26|title=How safe is peer-to-peer lending?|language=en-GB|newspaper=[[The Daily Telegraph]]|url=https://www.telegraph.co.uk/finance/markets/questor/11759729/How-safe-is-peer-to-peer-lending.html|access-date=2018-04-11|issn=0307-1235}}</ref><ref>{{Cite web|last=Jones|first=Rupert|date=2014-02-15|title=The major peer-to-peer lenders|url=https://www.theguardian.com/money/2014/feb/15/major-peer-to-peer-lenders-profiled|url-status=live|access-date=2018-04-11|website=[[The Guardian]]|language=en}}</ref>
Zopa grew steadily<ref>{{Cite web|url=https://www.verdict.co.uk/p2p-lending-industry-grow-up/|title=P2P lending: where will the P2P industry go next? - Verdict|website=www.verdict.co.uk|date=19 February 2018|language=en-GB|access-date=2018-04-11}}</ref> in the years prior to the [[financial crisis of 2007–2008]]. It navigated the period with no losses to investors' capital and only a small dip in returns during 2008.<ref>{{Cite news|last=Ficenec|first=John|date=2015-07-26|title=How safe is peer-to-peer lending?|language=en-GB|newspaper=[[The Daily Telegraph]]|url=https://www.telegraph.co.uk/finance/markets/questor/11759729/How-safe-is-peer-to-peer-lending.html|access-date=2018-04-11|issn=0307-1235}}</ref><ref>{{Cite web|last=Jones|first=Rupert|date=2014-02-15|title=The major peer-to-peer lenders|url=https://www.theguardian.com/money/2014/feb/15/major-peer-to-peer-lenders-profiled|access-date=2018-04-11|website=[[The Guardian]]|language=en}}</ref>


In September 2016, the first portfolio of Zopa loans was securitised on the European markets.<ref name="FinancialTimes2016September26HaleThomas">{{cite news|last1=Hale|first1=Thomas|date=26 September 2016|title=Debut securitisation for Zopa loans|language=en|publisher=[[Financial Times]]|agency=Nikkei|location=United Kingdom|url=http://www.ft.com/fastft/2016/09/26/zopa-prices-debut-peer-to-peer-loan-securitsation/|access-date=10 November 2016}}</ref>
In September 2016, the first portfolio of Zopa loans was securitised on the European markets.<ref name="FinancialTimes2016September26HaleThomas">{{cite news|last1=Hale|first1=Thomas|date=26 September 2016|title=Debut securitisation for Zopa loans|language=en|publisher=[[Financial Times]]|agency=Nikkei|location=United Kingdom|url=http://www.ft.com/fastft/2016/09/26/zopa-prices-debut-peer-to-peer-loan-securitsation/|access-date=10 November 2016}}</ref>


In January 2017, Zopa became the first UK based peer-to-peer lending company to lend more than £2 billion worth of loans.<ref>{{Cite news|url=https://www.businessinsider.com/peer-to-peer-zopa-passes-2-billion-lent-over-platform-2017-1|title=Peer-to-peer lender Zopa passes £2 billion loans milestone|work=Business Insider|access-date=2018-04-11}}</ref> Zopa became fully regulated by the [[Financial Conduct Authority]] in May 2017.<ref>{{cite news|last1=Williams|first1=Aime|title=Zopa gets FCA approval as peer-to-peer lender|work=[[Financial Times]]|url=https://www.ft.com/content/06db527a-363c-11e7-99bd-13beb0903fa3|access-date=15 May 2017}}</ref><ref>{{Cite news|last=Barber|first=Lynsey|date=2017-05-11|title=Zopa just got full approval as a P2P lender from the FCA|language=en|work=[[City A.M.]]|url=http://www.cityam.com/264542/zopa-just-got-full-approval-p2p-lender-financial-conduct|access-date=2018-04-11}}</ref> Following FCA authorisation, and [[HM Revenue and Customs|HMRC]] approval as an [[Individual Savings Account]] (ISA) manager, Zopa started offering Innovative Finance ISA products in June 2017.<ref>{{Cite news|url=https://www.telegraph.co.uk/investing/news/zopa-scraps-key-saver-protection-offers-isas-paying-61pc/|title=Zopa Isa offering up to 6.1pc finally available|last=Suter|first=Laura|date=2017-05-26|work=The Telegraph|access-date=2018-04-11|language=en-GB|issn=0307-1235}}</ref>
In November 2016, Zopa announced that it would apply for a banking licence<ref name="TheTimes2016November17HurleyJames">{{cite news|last1=Hurley|first1=James|date=17 November 2016|title=Peer-to-peer lender Zopa to launch bank|language=en|work=[[The Times]]|agency=Times Newspapers Limited|issue=Business|location=United Kingdom|url=http://www.thetimes.co.uk/article/peer-to-peer-lender-zopa-to-launch-bank-3sr7ht5nt|access-date=8 March 2017}}</ref> in order to offer customers a broader set of personal finance products.<ref>{{Cite news|last=Dunkley|first=Emma|title=Peer-to-peer lending pioneer seeks banking licence|work=[[Financial Times]]|url=https://www.ft.com/content/53aa3dec-ac07-11e6-9cb3-bb8207902122}}</ref>


In January 2017, Zopa became the first UK based peer-to-peer lending company to lend more than £2 billion worth of loans.<ref>{{Cite news|url=http://uk.businessinsider.com/peer-to-peer-zopa-passes-2-billion-lent-over-platform-2017-1|title=Peer-to-peer lender Zopa passes £2 billion loans milestone|work=Business Insider|access-date=2018-04-11}}</ref> Zopa became fully regulated by the [[Financial Conduct Authority]] in May 2017.<ref>{{cite news|last1=Williams|first1=Aime|title=Zopa gets FCA approval as peer-to-peer lender|work=[[Financial Times]]|url=https://www.ft.com/content/06db527a-363c-11e7-99bd-13beb0903fa3|access-date=15 May 2017}}</ref><ref>{{Cite news|last=Barber|first=Lynsey|date=2017-05-11|title=Zopa just got full approval as a P2P lender from the FCA|language=en|work=[[City A.M.]]|url=http://www.cityam.com/264542/zopa-just-got-full-approval-p2p-lender-financial-conduct|access-date=2018-04-11}}</ref> Following FCA authorisation, and [[HM Revenue and Customs|HMRC]] approval as an [[Individual Savings Account]] (ISA) manager, Zopa started offering Innovative Finance ISA products in June 2017.<ref>{{Cite news|url=https://www.telegraph.co.uk/investing/news/zopa-scraps-key-saver-protection-offers-isas-paying-61pc/|title=Zopa Isa offering up to 6.1pc finally available|last=Suter|first=Laura|date=2017-05-26|work=The Telegraph|access-date=2018-04-11|language=en-GB|issn=0307-1235}}</ref>
In November 2016, Zopa announced its intention to apply for a banking licence so it could expand the range of financial products it offers to UK consumers.<ref>{{Cite news|last=Hurley|first=James |date=2016-11-17|title=Peer-to-peer lender Zopa to launch bank|language=en|work=[[The Times]]|url=https://www.thetimes.co.uk/article/peer-to-peer-lender-zopa-to-launch-bank-3sr7ht5nt|access-date=2018-04-11|issn=0140-0460}}</ref><ref>{{Cite news|last=Dunkley|first=Emma|date=16 November 2016|title=Peer-to-peer lending pioneer seeks banking licence|work=[[Financial Times]]|url=https://www.ft.com/content/53aa3dec-ac07-11e6-9cb3-bb8207902122}}</ref> In August 2018, Zopa obtained £44 million in funding for the launch of its new digital challenger bank.<ref>{{Cite news|date=2018-08-03|title=Digital Bank: Zopa Raises £44 Million to Help Fuel Expansion, "Launching Our Bank is a Key Next Step"|language=en-US|work=Crowdfund Insider|url=https://www.crowdfundinsider.com/2018/08/137323-digital-bank-zopa-raises-44-million-to-help-fuel-expansion-launching-our-bank-is-a-key-next-step/|access-date=2018-08-07}}</ref> In December 2018 the company was awarded interim banking licences by the UK financial regulators, the [[Financial Conduct Authority|FCA]] and [[Prudential Regulation Authority (United Kingdom)|PRA]].<ref name=":0">{{Cite news|title=Zopa, the UK P2P lending company, secures bank license|language=en-US|work=[[TechCrunch]]|url=https://techcrunch.com/2018/12/04/zopa-bank/|access-date=2018-12-04}}</ref>


Retail banking services – including deposit accounts and a credit card – were launched in June 2020.<ref name=":1" /> By March 2021, Zopa had attracted around £250m in fixed-term savings accounts and had become a "top ten" credit card issuer. In the same month, the company raised £20m further capital from its existing lenders.<ref>{{Cite news|last=Lanyon|first=Daniel|date=22 March 2021|title=Zopa raises £20m to expand digital bank, eyes profits|url=https://www.altfi.com/article/7728_zopa-raises-20m-to-expand-digital-bank-eyes-profits|url-status=live|access-date=2021-03-27|website=AltFi|language=en}}</ref>
Retail banking services – including deposit accounts and a credit card – were launched in June 2020, soon after a full banking licence was awarded.<ref name=":1">{{cite news|last1=Megaw|first1=Nicholas|date=2020-06-23|title=P2P lender Zopa wins UK banking licence|work=[[Financial Times]]|url=https://www.ft.com/content/1146e1f5-85f3-48cb-bb33-7f0d7a5781eb|access-date=22 September 2020}}</ref> By March 2021, Zopa had attracted around £250m in fixed-term savings accounts and had become a "top ten" credit card issuer. In the same month, the company raised £20m further capital from its existing lenders.<ref>{{Cite news|last=Lanyon|first=Daniel|date=22 March 2021|title=Zopa raises £20m to expand digital bank, eyes profits|url=https://www.altfi.com/article/7728_zopa-raises-20m-to-expand-digital-bank-eyes-profits|access-date=2021-03-27|website=AltFi|language=en}}</ref>


In June 2021, CEO Jaidev Janardana stated that Zopa could be [[Flotation (shares)|taken public]] as early as the last quarter of 2022.<ref>{{Cite web|last=Finn|first=Aisling|date=29 June 2021|title=Zopa is setting its sights on a 2022 IPO|url=https://www.altfi.com/article/8056_zopa-is-setting-its-sights-on-a-2022-ipo|url-status=live|access-date=2021-07-07|website=AltFi}}</ref> In October of that year, the company raised $300{{Nbsp}}million from [[SoftBank Vision Fund|Softbank Vision Fund]] and other investors, implying a $1{{Nbsp}}billion valuation.<ref name=":2">{{Cite web|last=Lunden|first=Ingrid|date=18 October 2021|title=Zopa raises $300M at a $1B valuation to expand its P2P lending and savings neobank in the UK|url=https://social.techcrunch.com/2021/10/18/zopa-raises-300m-at-a-1b-valuation-to-expand-its-p2p-lending-and-savings-neobank-in-the-uk/|url-status=live|access-date=2021-10-23|website=TechCrunch|language=en-US}}</ref>
In June 2021, CEO Jaidev Janardana stated that Zopa could be [[Flotation (shares)|taken public]] as early as the last quarter of 2022.<ref>{{Cite web|last=Finn|first=Aisling|date=29 June 2021|title=Zopa is setting its sights on a 2022 IPO|url=https://www.altfi.com/article/8056_zopa-is-setting-its-sights-on-a-2022-ipo|access-date=2021-07-07|website=AltFi}}</ref> In October of that year, the company raised $300{{Nbsp}}million from [[SoftBank Vision Fund|Softbank Vision Fund]] and other investors, implying a $1{{Nbsp}}billion valuation.<ref name=":2">{{Cite web|last=Lunden|first=Ingrid|date=18 October 2021|title=Zopa raises $300M at a $1B valuation to expand its P2P lending and savings neobank in the UK|url=https://techcrunch.com/2021/10/18/zopa-raises-300m-at-a-1b-valuation-to-expand-its-p2p-lending-and-savings-neobank-in-the-uk/|access-date=2021-10-23|website=TechCrunch|language=en-US}}</ref> A further £75m was raised from existing investors, not including Softbank, in early 2023.<ref name=":4">{{Cite web |last=Lunden |first=Ingrid |date=2023-02-02 |title=Zopa, the UK neobank, raises $93M more at a $1B+ valuation |url=https://techcrunch.com/2023/02/01/zopa-the-uk-neobank-raises-93m-more-at-a-1b-valuation/ |access-date=2023-02-04 |website=TechCrunch |language=en-US}}</ref>

In December 2021, Zopa announced it would be winding up the peer-to-peer side of its business, including buying back the existing loans of investors.<ref name=":3">{{Cite web|date=7 December 2021|title=Zopa exits peer-to-peer lending|url=https://www.altfi.com/article/8608_exclusive-zopa-exits-peer-to-peer-lending|access-date=2021-12-07|website=AltFi}}</ref>

In early 2023, Zopa had around 850,000 customers, over £3{{Nbsp}}billion in deposits and £2{{Nbsp}}billion on loan. The company indicated that it expected to make a profit over the full year for the first time in its history.<ref name=":4" />

In February 2023, it was announced Zopa had acquired the [[Newcastle-under-Lyme]]-headquartered, '[[buy now, pay later]]’ (BNPL) platform DivideBuy.<ref>{{Cite web |title=Zopa acquires BNPL DivideBuy |url=https://www.altfi.com/article/10419_zopa-acquires-bnpl-dividebuy |access-date=2023-02-16 |website=AltFi |language=en}}</ref>

In December 2024, Zopa raised $87 million in equity at a valuation exceeding $1 billion, prioritizing profitability and growth over an IPO amidst a sluggish tech [[IPO]] market.<ref>https://techcrunch.com/2024/12/05/zopa-the-uk-neobank-snaps-up-85m-at-a-1b-valuation-eschewing-the-ipo-route/</ref>


==Products and services==
==Products and services==


=== Peer-to-peer lending ===
=== Peer-to-peer lending ===
Zopa enables investors to lend to UK consumers through its peer-to-peer lending platform.<ref>{{Cite news|url=https://www.moneysavingexpert.com/savings/peer-to-peer-lending|title=Peer to peer lending: boost savings returns? - MSE|last=Lewis|first=Martin|work=MoneySavingExpert.com|access-date=2018-04-11|language=en}}</ref> By 2021, around £6{{Nbsp}}billion in loans had been processed.<ref name=":2" />
Zopa enabled investors to lend to UK consumers through its peer-to-peer lending platform.<ref>{{Cite news|url=https://www.moneysavingexpert.com/savings/peer-to-peer-lending|title=Peer to peer lending: boost savings returns? - MSE|last=Lewis|first=Martin|work=MoneySavingExpert.com|access-date=2018-04-11|language=en}}</ref> By 2021, around £6{{Nbsp}}billion in loans had been processed.<ref name=":2" /> Borrowers could take out loans between £1,000 and £25,000.<ref>{{Cite web|url=https://www.comparethemarket.com/loans/information/zopa-loans/|title=comparethemarket.com - Zopa loans|website=www.comparethemarket.com|language=en-gb|access-date=2018-04-11}}</ref> Typically individuals used these to funds to help buy a car, consolidate debts, cover home improvements or weddings.<ref name="NewYorkTimes2012December10WerdigierJulia">{{cite news|last1=Werdigier|first1=Julia|date=10 December 2012|title=RIT Capital to Take Stake in British Financial Start-Up|language=en|work=[[The New York Times]]|agency=The New York Times Company|issue=DealBook|location=New York, N.Y., United States|url=https://dealbook.nytimes.com/2012/12/10/rit-capital-to-take-stake-in-british-financial-start-up/|access-date=9 March 2017}}</ref>


⚫
Investors could choose from four investment products<ref>{{Cite news|url=https://www.ft.com/content/fe013298-0118-11e8-9650-9c0ad2d7c5b5|title=P2P platform Zopa re-opens to new customers|last=Beioley|first=Kate|work=Financial Times}}</ref> based on their risk and return appetite. Investors' money was split across multiple borrowers.<ref>{{Cite web|url=https://www.which.co.uk/money/investing/types-of-investment/guides/peer-to-peer-investing/peer-to-peer-lending-explained|title=Peer-to-peer lending explained - Which?|website=Which?|date=21 June 2016|language=en|access-date=2018-04-11}}</ref> Investors then received monthly repayments of interest and capital, which they could re-lend to compound the interest.
Borrowers can take out loans between £1,000 and £25,000.<ref>{{Cite web|url=https://www.comparethemarket.com/loans/information/zopa-loans/|title=comparethemarket.com - Zopa loans|website=www.comparethemarket.com|language=en-gb|access-date=2018-04-11}}</ref> Typically individuals use these to funds to help buy a car, consolidate debts, cover home improvements or weddings.<ref name="NewYorkTimes2012December10WerdigierJulia">{{cite news|last1=Werdigier|first1=Julia|date=10 December 2012|title=RIT Capital to Take Stake in British Financial Start-Up|language=en|work=[[The New York Times]]|agency=The New York Times Company|issue=DealBook|location=New York, N.Y., United States|url=https://dealbook.nytimes.com/2012/12/10/rit-capital-to-take-stake-in-british-financial-start-up/|access-date=9 March 2017}}</ref>


In December 2021, Zopa announced that it would withdraw from peer-to-peer lending<ref name=":3" /> with the intent to repay all investors no later than 31 January 2022.
⚫
Investors can choose from four investment products<ref>{{Cite news|url=https://www.ft.com/content/fe013298-0118-11e8-9650-9c0ad2d7c5b5|title=P2P platform Zopa re-opens to new customers|last=Beioley|first=Kate|work=Financial Times}}</ref> based on their risk and return appetite. Investors' money is split across multiple borrowers.<ref>{{Cite web|url=https://www.which.co.uk/money/investing/types-of-investment/guides/peer-to-peer-investing/peer-to-peer-lending-explained|title=Peer-to-peer lending explained - Which?|website=Which?|date=21 June 2016|language=en|access-date=2018-04-11}}</ref> Investors then receive monthly repayments of interest and capital, which they can re-lend to compound the interest.


=== Banking and credit cards ===
=== Banking and credit cards ===
Zopa offers [[Financial Services Compensation Scheme|FSCS]]-protected deposit accounts, personal loans, credit cards,<ref>{{Cite news|title=Zopa is 'pretty close to finishing' building its new bank|language=en|work=[[Business Insider]]|url=http://uk.businessinsider.com/zopa-ceo-jaidev-janardana-on-building-a-new-bank-2017-10|archive-url=https://web.archive.org/web/20171018062945/http://uk.businessinsider.com/zopa-ceo-jaidev-janardana-on-building-a-new-bank-2017-10|url-status=dead|archive-date=18 October 2017|access-date=2018-04-11}}</ref> and a money management app which makes use of data made available by the introduction of [[Open banking|Open Banking]].<ref>{{Cite news|title=Zopa boss Janardana details plans for customer-centric bank - AltFi Opinion|language=en-GB|work=AltFi|url=http://www.altfi.com/article/3116_zopa_boss_janardana_sheds_light_on_customer_centric_bank|access-date=2018-04-11}}</ref>
In November 2016, Zopa announced its intention to apply for a banking licence so it could expand the range of financial products it offers to UK consumers.<ref>{{Cite news|last=Editor|first=James Hurley, Enterprise|date=2016-11-17|title=Peer-to-peer lender Zopa to launch bank|language=en|work=[[The Times]]|url=https://www.thetimes.co.uk/article/peer-to-peer-lender-zopa-to-launch-bank-3sr7ht5nt|access-date=2018-04-11|issn=0140-0460}}</ref>

Zopa's bank sits alongside its peer-to-peer lending business, offering [[Financial Services Compensation Scheme|FSCS]] protected deposit accounts, credit cards,<ref>{{Cite news|title=Zopa is 'pretty close to finishing' building its new bank|language=en|work=[[Business Insider]]|url=http://uk.businessinsider.com/zopa-ceo-jaidev-janardana-on-building-a-new-bank-2017-10|access-date=2018-04-11}}</ref> and a money management app which makes use of data made available by the introduction of [[Open banking|Open Banking]].<ref>{{Cite news|url=http://www.altfi.com/article/3116_zopa_boss_janardana_sheds_light_on_customer_centric_bank|title=Zopa boss Janardana details plans for customer-centric bank - AltFi Opinion|work=AltFi|access-date=2018-04-11|language=en-GB}}</ref> In August 2018, Zopa obtained £44 million in funding for the launch of its new digital challenger bank.<ref>{{Cite news|url=https://www.crowdfundinsider.com/2018/08/137323-digital-bank-zopa-raises-44-million-to-help-fuel-expansion-launching-our-bank-is-a-key-next-step/|title=Digital Bank: Zopa Raises £44 Million to Help Fuel Expansion, "Launching Our Bank is a Key Next Step" |date=2018-08-03|work=Crowdfund Insider|access-date=2018-08-07|language=en-US}}</ref> In December 2018 the company was awarded interim banking licences from the UK financial regulators, the [[Financial Conduct Authority|FCA]] and [[Prudential Regulation Authority (United Kingdom)|PRA]].<ref name=":0">{{Cite news|title=Zopa, the UK P2P lending company, secures bank license|language=en-US|work=[[TechCrunch]]|url=https://techcrunch.com/2018/12/04/zopa-bank/|access-date=2018-12-04}}</ref> The bank was launched in June 2020, soon after a full banking licence was awarded.<ref name=":1">{{cite news|last1=Megaw|first1=Nicholas|date=2020-06-23|title=P2P lender Zopa wins UK banking licence|work=[[Financial Times]]|url=https://www.ft.com/content/1146e1f5-85f3-48cb-bb33-7f0d7a5781eb|access-date=22 September 2020}}</ref>


==Corporate identity==
==Corporate identity==
The company's main office is at London Bridge.<ref name="CrowdfundInsider2016August04HurstSamantha">{{cite news|last1=Hurst|first1=Samantha|title=Zopa Relocates: Moves Into New London Bridge Digs|agency=Crowded Media Group|publisher=Crowdfund Insider|date=4 August 2016|language=en}}</ref> Since 2017, Zopa also has a development centre in Barcelona, Spain.<ref>{{Cite news|date=2017-06-07|title=Zopa Establishes Development Center in Barcelona|language=en-US|work=Crowdfund Insider|url=https://www.crowdfundinsider.com/2017/06/101572-zopa-establishes-development-center-barcelona/|url-status=live|access-date=2018-05-15}}</ref>
The company's main office is at London Bridge.<ref name="CrowdfundInsider2016August04HurstSamantha">{{cite news|last1=Hurst|first1=Samantha|title=Zopa Relocates: Moves Into New London Bridge Digs|agency=Crowded Media Group|publisher=Crowdfund Insider|date=4 August 2016|language=en}}</ref> Since 2017, Zopa also has a development centre in Barcelona, Spain.<ref>{{Cite news|date=2017-06-07|title=Zopa Establishes Development Center in Barcelona|language=en-US|work=Crowdfund Insider|url=https://www.crowdfundinsider.com/2017/06/101572-zopa-establishes-development-center-barcelona/|access-date=2018-05-15}}</ref>


The company's name comes from "[[zone of possible agreement]]", a negotiating term identifying the bounds within which agreement can be reached between two parties.<ref>{{Cite news|last=Cave|first=Andrew|date=2016-03-05|title=Zopa aims for enough growth to stop explaining its name|language=en-GB|work=[[The Daily Telegraph]]|url=https://www.telegraph.co.uk/business/2016/03/05/zopa-aims-for-enough-growth-to-stop-explaining-its-name/|access-date=2018-04-11|issn=0307-1235}}</ref>
The company's name comes from "[[zone of possible agreement]]", a negotiating term identifying the bounds within which agreement can be reached between two parties.<ref>{{Cite news|last=Cave|first=Andrew|date=2016-03-05|title=Zopa aims for enough growth to stop explaining its name|language=en-GB|work=[[The Daily Telegraph]]|url=https://www.telegraph.co.uk/business/2016/03/05/zopa-aims-for-enough-growth-to-stop-explaining-its-name/|access-date=2018-04-11|issn=0307-1235}}</ref>
Line 68: Line 75:
==See also==
==See also==
* [[Comparison of crowd funding services]]
* [[Comparison of crowd funding services]]
* [[Neobanks in Europe]]
* [[Peer-to-peer lending]]
* [[Peer-to-peer lending]]


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==External links==
==External links==
{{commons category-inline}}
* {{Official website}}
* {{Official website}}


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[[Category:Peer-to-peer lending companies]]
[[Category:Peer-to-peer lending companies]]
[[Category:British companies established in 2005]]
[[Category:British companies established in 2005]]
[[Category:Banks based in the City of London]]

Latest revision as of 13:06, 14 December 2024

For other uses, see Zopa (disambiguation).

Zopa Bank Ltd.
Company typeLtd.
IndustryPersonal financial services
FoundedMarch 2005; 19 years ago (2005-03)[1][2]
FoundersRichard Duvall
James Alexander
Giles Andrews
David Nicholson
Tim Parlett
HeadquartersCottons Centre,
Tooley Street, London
,
United Kingdom
Key people
Jaidev Janardana (CEO)[3]
ProductsP2P lending,[4] retail banking
RevenueIncrease £222M [5] (2023)
Increase £15.8M (2023)
Websitewww.zopa.com Edit this at Wikidata

Zopa Bank Ltd. (/ˈzoʊpə/[6]) is a British online bank which offers deposit accounts, personal loans and credit cards. It began as the world's first peer-to-peer lending company in 2005 and gained a full banking licence in 2020. The peer-to-peer side of its business closed in December 2021.

History

[edit]

Zopa was launched in the UK in March 2005 as an arranger of peer-to-peer lending, connecting investors with individuals seeking loans.[7][8] It was founded in Buckinghamshire in 2004 by a team from the internet banking company Egg Banking.[9][10]

Zopa grew steadily[11] in the years prior to the financial crisis of 2007–2008. It navigated the period with no losses to investors' capital and only a small dip in returns during 2008.[12][13]

In September 2016, the first portfolio of Zopa loans was securitised on the European markets.[14]

In January 2017, Zopa became the first UK based peer-to-peer lending company to lend more than £2 billion worth of loans.[15] Zopa became fully regulated by the Financial Conduct Authority in May 2017.[16][17] Following FCA authorisation, and HMRC approval as an Individual Savings Account (ISA) manager, Zopa started offering Innovative Finance ISA products in June 2017.[18]

In November 2016, Zopa announced its intention to apply for a banking licence so it could expand the range of financial products it offers to UK consumers.[19][20] In August 2018, Zopa obtained £44 million in funding for the launch of its new digital challenger bank.[21] In December 2018 the company was awarded interim banking licences by the UK financial regulators, the FCA and PRA.[22]

Retail banking services – including deposit accounts and a credit card – were launched in June 2020, soon after a full banking licence was awarded.[23] By March 2021, Zopa had attracted around £250m in fixed-term savings accounts and had become a "top ten" credit card issuer. In the same month, the company raised £20m further capital from its existing lenders.[24]

In June 2021, CEO Jaidev Janardana stated that Zopa could be taken public as early as the last quarter of 2022.[25] In October of that year, the company raised $300 million from Softbank Vision Fund and other investors, implying a $1 billion valuation.[26] A further £75m was raised from existing investors, not including Softbank, in early 2023.[27]

In December 2021, Zopa announced it would be winding up the peer-to-peer side of its business, including buying back the existing loans of investors.[28]

In early 2023, Zopa had around 850,000 customers, over £3 billion in deposits and £2 billion on loan. The company indicated that it expected to make a profit over the full year for the first time in its history.[27]

In February 2023, it was announced Zopa had acquired the Newcastle-under-Lyme-headquartered, 'buy now, pay later’ (BNPL) platform DivideBuy.[29]

In December 2024, Zopa raised $87 million in equity at a valuation exceeding $1 billion, prioritizing profitability and growth over an IPO amidst a sluggish tech IPO market.[30]

Products and services

[edit]

Peer-to-peer lending

[edit]

Zopa enabled investors to lend to UK consumers through its peer-to-peer lending platform.[31] By 2021, around £6 billion in loans had been processed.[26] Borrowers could take out loans between £1,000 and £25,000.[32] Typically individuals used these to funds to help buy a car, consolidate debts, cover home improvements or weddings.[2]

Investors could choose from four investment products[33] based on their risk and return appetite. Investors' money was split across multiple borrowers.[34] Investors then received monthly repayments of interest and capital, which they could re-lend to compound the interest.

In December 2021, Zopa announced that it would withdraw from peer-to-peer lending[28] with the intent to repay all investors no later than 31 January 2022.

Banking and credit cards

[edit]

Zopa offers FSCS-protected deposit accounts, personal loans, credit cards,[35] and a money management app which makes use of data made available by the introduction of Open Banking.[36]

Corporate identity

[edit]

The company's main office is at London Bridge.[37] Since 2017, Zopa also has a development centre in Barcelona, Spain.[38]

The company's name comes from "zone of possible agreement", a negotiating term identifying the bounds within which agreement can be reached between two parties.[39]

See also

[edit]

References

[edit]
  1. ^ Akst, Daniel (5 February 2006). "Where Lender Meets Borrower, Directly". New York Times. No. Business Day. New York, N.Y., United States. The New York Times Company. Retrieved 9 March 2017.
  2. ^ a b Werdigier, Julia (10 December 2012). "RIT Capital to Take Stake in British Financial Start-Up". The New York Times. No. DealBook. New York, N.Y., United States. The New York Times Company. Retrieved 9 March 2017.
  3. ^ "Zopa CEO Jaidev Janardana: Leading UK P2P Lending with Superior Service, Transparency and Cutting-Edge Fintech". McGill University.
  4. ^ Scott, Mark (9 June 2014). "A Lift for One of London's Financial Tech Start-Ups". New York Times. No. DealBook. New York, N.Y., United States. The New York Times Company. p. B3. Retrieved 9 March 2017.
  5. ^ "Zopa Bank reports first full year profit". www.cnbc.com. 14 November 2024. Retrieved 14 November 2024.
  6. ^ Zopa (15 October 2021). "Why you should join Zopa: a message from our new Chief People Officer". YouTube. Archived from the original on 30 January 2024. Retrieved 30 January 2024.
  7. ^ Prosser, David. "Happy Birthday Zopa, The Inventor Of P2P". Forbes. Retrieved 11 April 2018.
  8. ^ "Q&A: Online lending exchange". BBC News. United Kingdom: BBC. 7 March 2005. Retrieved 4 July 2016.
  9. ^ Evans, Judith (14 August 2015). "My Money — Giles Andrews, Zopa chief". Financial Times. Nikkei. Retrieved 8 March 2017.
  10. ^ "Zopa opera". computing.co.uk. 6 September 2007. Retrieved 3 October 2015.
  11. ^ "P2P lending: where will the P2P industry go next? - Verdict". www.verdict.co.uk. 19 February 2018. Retrieved 11 April 2018.
  12. ^ Ficenec, John (26 July 2015). "How safe is peer-to-peer lending?". The Daily Telegraph. ISSN 0307-1235. Retrieved 11 April 2018.
  13. ^ Jones, Rupert (15 February 2014). "The major peer-to-peer lenders". The Guardian. Retrieved 11 April 2018.
  14. ^ Hale, Thomas (26 September 2016). "Debut securitisation for Zopa loans". United Kingdom: Financial Times. Nikkei. Retrieved 10 November 2016.
  15. ^ "Peer-to-peer lender Zopa passes £2 billion loans milestone". Business Insider. Retrieved 11 April 2018.
  16. ^ Williams, Aime. "Zopa gets FCA approval as peer-to-peer lender". Financial Times. Retrieved 15 May 2017.
  17. ^ Barber, Lynsey (11 May 2017). "Zopa just got full approval as a P2P lender from the FCA". City A.M. Retrieved 11 April 2018.
  18. ^ Suter, Laura (26 May 2017). "Zopa Isa offering up to 6.1pc finally available". The Telegraph. ISSN 0307-1235. Retrieved 11 April 2018.
  19. ^ Hurley, James (17 November 2016). "Peer-to-peer lender Zopa to launch bank". The Times. ISSN 0140-0460. Retrieved 11 April 2018.
  20. ^ Dunkley, Emma (16 November 2016). "Peer-to-peer lending pioneer seeks banking licence". Financial Times.
  21. ^ "Digital Bank: Zopa Raises £44 Million to Help Fuel Expansion, "Launching Our Bank is a Key Next Step"". Crowdfund Insider. 3 August 2018. Retrieved 7 August 2018.
  22. ^ "Zopa, the UK P2P lending company, secures bank license". TechCrunch. Retrieved 4 December 2018.
  23. ^ Megaw, Nicholas (23 June 2020). "P2P lender Zopa wins UK banking licence". Financial Times. Retrieved 22 September 2020.
  24. ^ Lanyon, Daniel (22 March 2021). "Zopa raises £20m to expand digital bank, eyes profits". AltFi. Retrieved 27 March 2021.
  25. ^ Finn, Aisling (29 June 2021). "Zopa is setting its sights on a 2022 IPO". AltFi. Retrieved 7 July 2021.
  26. ^ a b Lunden, Ingrid (18 October 2021). "Zopa raises $300M at a $1B valuation to expand its P2P lending and savings neobank in the UK". TechCrunch. Retrieved 23 October 2021.
  27. ^ a b Lunden, Ingrid (2 February 2023). "Zopa, the UK neobank, raises $93M more at a $1B+ valuation". TechCrunch. Retrieved 4 February 2023.
  28. ^ a b "Zopa exits peer-to-peer lending". AltFi. 7 December 2021. Retrieved 7 December 2021.
  29. ^ "Zopa acquires BNPL DivideBuy". AltFi. Retrieved 16 February 2023.
  30. ^ https://techcrunch.com/2024/12/05/zopa-the-uk-neobank-snaps-up-85m-at-a-1b-valuation-eschewing-the-ipo-route/
  31. ^ Lewis, Martin. "Peer to peer lending: boost savings returns? - MSE". MoneySavingExpert.com. Retrieved 11 April 2018.
  32. ^ "comparethemarket.com - Zopa loans". www.comparethemarket.com. Retrieved 11 April 2018.
  33. ^ Beioley, Kate. "P2P platform Zopa re-opens to new customers". Financial Times.
  34. ^ "Peer-to-peer lending explained - Which?". Which?. 21 June 2016. Retrieved 11 April 2018.
  35. ^ "Zopa is 'pretty close to finishing' building its new bank". Business Insider. Archived from the original on 18 October 2017. Retrieved 11 April 2018.
  36. ^ "Zopa boss Janardana details plans for customer-centric bank - AltFi Opinion". AltFi. Retrieved 11 April 2018.
  37. ^ Hurst, Samantha (4 August 2016). "Zopa Relocates: Moves Into New London Bridge Digs". Crowdfund Insider. Crowded Media Group.
  38. ^ "Zopa Establishes Development Center in Barcelona". Crowdfund Insider. 7 June 2017. Retrieved 15 May 2018.
  39. ^ Cave, Andrew (5 March 2016). "Zopa aims for enough growth to stop explaining its name". The Daily Telegraph. ISSN 0307-1235. Retrieved 11 April 2018.
[edit]

Media related to Zopa Bank at Wikimedia Commons

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