Zopa: Difference between revisions
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{{Short description|British financial services company}} |
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{{Other uses}} |
{{Other uses}} |
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{{Use British English|date=November 2019}} |
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{{Multiple issues| |
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{{Use dmy dates|date=November 2019}} |
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{{Third-party|date=February 2017}} |
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{{Infobox company |
{{Infobox company |
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| name |
| name = Zopa Bank Ltd. |
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| logo |
| logo = Zopa_Corporate_Logo.svg |
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| logo_size = |
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| type = [[Ltd.]] |
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| type = [[Ltd.]] |
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| founders = Giles Andrews <br />James Alexander<br />Richard Duvall<br />David Nicholson<br />Tim Parlett |
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| founders = Richard Duvall<br />James Alexander<br />Giles Andrews<br />David Nicholson<br />Tim Parlett |
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| hq_location = Cottons Centre |
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| hq_location = Cottons Centre |
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| hq_location_city = [[Tooley Street]], [[London]] |
| hq_location_city = [[Tooley Street]], [[London]] |
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| hq_location_country = |
| hq_location_country = United Kingdom |
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| area_served |
| area_served = |
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| key_people = Jaidev Janardana (CEO)<ref>{{cite web |title=Zopa CEO Jaidev Janardana: Leading UK P2P Lending with Superior Service, Transparency and Cutting-Edge Fintech |url=https://www.mcgill.ca/channels/news/zopa-ceo-jaidev-janardana-leading-uk-p2p-lending-superior-service-transparency-and-cutting-edge-fint-261309|work= [[McGill University]]}}</ref> |
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| key_people = |
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| industry |
| industry = Personal financial services |
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| genre |
| genre = |
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| products |
| 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]] |
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| 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> |
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| revenue = |
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| revenue_year = 2023 |
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| operating_income = |
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| net_income |
| net_income = {{increase}} £15.8M |
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| net_income_year = 2023 |
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| owner = |
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| owner = |
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| num_employees = |
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| parent = |
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| subsid = |
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| subsid = |
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| footnotes = |
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| footnotes = |
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| vector_logo = |
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| foundation |
| foundation = {{Start date and age|2005|03}}<ref name="NewYorkTimes2006February05AkstDaniel">{{cite news|last1=Akst|first1=Daniel|title=Where Lender Meets Borrower, Directly|url=https://www.nytimes.com/2006/02/05/business/yourmoney/where-lender-meets-borrower-directly.html|access-date=9 March 2017|agency=The New York Times Company|issue=Business Day|work=New York Times|date=5 February 2006|location=New York, N.Y., United States|language=en}}</ref><ref name="NewYorkTimes2012December10WerdigierJulia" /> |
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| homepage = {{Official URL}} |
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| origins = |
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| dissolved = |
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| homepage = {{URL|http://www.zopa.com/}} |
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| dissolved = |
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}} |
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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. |
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'''Zopa''' is a UK online personal finance [[peer-to-peer lending]] company founded in 2005.<ref name="NewYorkTimes2012December10WerdigierJulia" /> In 2012 the ''New York Times'' reported that Zopa was "one of the world’s first Web sites that aims to directly bring together borrowers and savers, cutting out financial institutions from the lending process."<ref name="NewYorkTimes2012December10WerdigierJulia" /> |
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==History== |
==History== |
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Zopa was founded in Buckinghamshire in 2004 by a team from the internet banking company [[Egg Banking]] |
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> |
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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> |
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The New York Times reported "amid the economic slump" due to the [[financial crisis of 2007–2008]] Zopa "abandoned its own costly push into the United States."<ref name="NewYorkTimes2013August07SmithRandall">{{cite news|last1=Smith|first1=Randall|title=Not Banks, but Still Lending Money and Drawing Investors|url=https://dealbook.nytimes.com/2013/08/07/not-banks-but-still-lending-and-drawing-investors/|accessdate=9 March 2017|agency=The New York Times Company|issue=DealBook|publisher=New York Times|date=7 August 2013|location=New York, N.Y., United States|page=B5|language=English}}</ref> |
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In September 2016, the first portfolio of Zopa loans was securitised on the European markets.<ref name="FinancialTimes2016September26HaleThomas">{{cite news|last1=Hale|first1=Thomas|title=Debut securitisation for Zopa loans|url=http://www.ft.com/fastft/2016/09/26/zopa-prices-debut-peer-to-peer-loan-securitsation/| |
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> |
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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> |
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In November 2016, Zopa announced that it would apply for a banking license.<ref name="TheTimes2016November17HurleyJames">{{cite news|last1=Hurley|first1=James|title=Peer-to-peer lender Zopa to launch bank|url=http://www.thetimes.co.uk/article/peer-to-peer-lender-zopa-to-launch-bank-3sr7ht5nt|accessdate=8 March 2017|agency=Times Newspapers Limited|issue=Business|publisher=The Times|date=17 November 2016|location=United Kingdom|language=English}}</ref> Zopa became fully regulated by the FCA in May 2017.<ref>{{cite news|last1=Williams|first1=Aime|title=Zopa gets FCA approval as peer-to-peer lender|url=https://www.ft.com/content/06db527a-363c-11e7-99bd-13beb0903fa3|accessdate=15 May 2017|publisher=Financial Times}}</ref> |
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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> |
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==Products and services== |
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===Business Model=== |
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;Peer-to-peer lending |
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Zopa enables investors to lend to UK consumers directly through its peer-to-peer lending platform. |
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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> |
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Borrowers can take out loans between £500 and £25,000.<ref name="BBC2005March07" /><ref name="NewYorkTimes2008June15TedeschiBob">{{cite news|last1=Tedeschi|first1=Bob|title=Person-to-Person Loans|url=http://www.nytimes.com/2008/06/15/realestate/15mort.html|accessdate=9 March 2017|agency=The New York Times Company|issue=Real Estate|publisher=New York Times|date=15 June 2008|location=New York, N.Y., United States|page=RE6|language=English}}</ref> Typically individuals use these to funds to help buy a car, consolidate debts, cover home improvements or weddings.<ref name="NewYorkTimes2012December10WerdigierJulia" /> All applicants are credit-checked by Zopa. |
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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> |
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Investors’ money enters a queue to be lent in one of three products, which vary according to the risk, returns and accessibility they offer. Once the money reaches the front of the queue, it is split into micro-loans (typically of £10-20 each) that go to multiple borrowers. Investors then receive monthly repayments of interest and capital, which they can relend to compound the interest. |
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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> |
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In 2005 the BBC reported that "customers borrow at the interest rate that suits them, based on their personal credit rating. In addition, they must pay a one-off fee equivalent to 1% of the loan they take out." Further Zopa sells "loan payment protection insurance to borrowers" and Zopa does not charge lenders a fee to use the exchange.<ref name="BBC2005March07" /> |
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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" /> |
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=== Safeguard=== |
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In May 2013 Zopa introduced its Safeguard Fund, which covers investors’ losses if a borrower defaults. This was because peer-to-peer investors could then not offset their losses against tax. |
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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> |
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The Safeguard Fund has paid out all losses to date, but there is no guarantee it will do in the future.<ref name="Co-operativeNews2015June03DugganKate">{{cite news|last1=Duggan|first1=Kate|title=Innovations in ethical investment|url=http://www.thenews.coop/95556/news/general/innovations-in-ethical-investment/|accessdate=8 March 2017|agency=Co-operative Press Ltd|publisher=Co-operative News|date=3 June 2015|location=United Kingdom|language=English}}</ref> |
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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> |
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===Bank launch=== |
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In November 2016 Zopa announced its intention to apply for a banking license so it could expand the range of financial products it offers to UK consumers<ref name="TechCrunch2014January30ButcherMike">{{cite news|last1=Butcher|first1=Mike|title=P2P Lending Pioneer Zopa Closes $25m From Hedge Fund For UK Expansion|url=https://techcrunch.com/2014/01/30/p2p-lending-pioneer-zopa-closes-25m-from-hedge-fund-for-uk-expansion/|accessdate=3 October 2015|agency=AOL Inc.|publisher=TechCrunch|date=30 January 2014|language=English}}</ref> |
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==Products and services== |
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Zopa’s bank is scheduled to launch in 2018 and will sit alongside the peer-to-peer lending business. At launch, Zopa plans to offer FSCS protected deposit accounts to savers and overdraft alternatives to borrowers.<ref name="TheTelegraph2016November16SuterLaura">{{cite news|last1=Suter|first1=Laura|title=Peer-to-peer giant Zopa to launch digital bank|url=http://www.telegraph.co.uk/personal-banking/savings/peer-to-peer-giant-zopa-to-launch-digital-bank//|accessdate=8 March 2017|agency=Telegraph Media Group Limited|issue=Money|publisher=The Telegraph|date=16 November 2016|location=United Kingdom|language=English}}</ref> |
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=== Peer-to-peer lending === |
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==Operations== |
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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> |
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===Current operations=== |
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Zopa operates only in the United Kingdom. |
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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. |
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===Registered users=== |
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{| class="wikitable collapsible collapsed sortable" cellspacing="1" cellpadding="1" style="margin:auto; text-align:center;" |
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|+Registered Users |
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! Year !! # of |
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| 2017 || |
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| 2016 || |
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| 2015 || |
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| 2014 || |
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| 2013 || |
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| 2012 || |
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| 2011 || |
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| 2010 || |
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| 2009 || |
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| 2008 || |
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| 2007 || |
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| 2006 || 50,000<ref name="NewYorkTimes2006February13TedeschiBob" /> |
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| 2005 || |
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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. |
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===Total money lent=== |
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{| class="wikitable collapsible collapsed sortable" cellspacing="1" cellpadding="1" style="margin:auto; text-align:center;" |
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|+Total money lent |
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! Year !! £ million |
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| 2017 || £2 billion<ref name="BusinessInsider2017January30Williams-GrutOscar">{{cite news|last1=Williams-Grut|first1=Oscar|title=Peer-to-peer lender Zopa passes £2 billion loans milestone|url=http://uk.businessinsider.com/peer-to-peer-zopa-passes-2-billion-lent-over-platform-2017-1?r=US&IR=T|accessdate=8 March 2017|agency=Business Insider Inc.|issue=Finance|publisher=Business Insider|date=30 January 2017|location=United Kingdom|language=English}}</ref> |
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| 2016 || |
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| 2015 || £1 billion<ref name="CityAM2015August18HaslettEmma">{{cite news|last1=Haslett|first1=Emma|title=Zopa becomes the first UK peer-to-peer lender to crash through £1bn of loans|url=http://www.cityam.com/222523/zopa-becomes-first-peer-peer-lender-crash-through-1bn-loans|accessdate=8 March 2017|agency=City A.M. Limited|issue=Money|publisher=City A.M.|date=18 August 2015|location=United Kingdom|language=English}}</ref><ref name="BusinessInsider2015August17Williams-GrutOscar">{{cite news|last1=Williams-Grut|first1=Oscar|title=Peer-to-peer lender Zopa is growing like crazy and will do £1 billion next year|url=http://uk.businessinsider.com/peer-to-peer-zopa-lends-1-billion-2015-8|accessdate=26 November 2015|agency=Business Insider Inc.|issue=Finance|publisher=Business Insider|date=17 August 2015|location=United Kingdom|language=English}}</ref> |
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| 2014 || £455 million<ref name="FinancialTimes2014January29MooreElaine" /> |
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| 2013 || |
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| 2012 || £250 million<ref name="NewYorkTimes2012December10WerdigierJulia" /> |
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| 2011 || |
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| 2010 || |
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| 2009 || |
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=== Banking and credit cards === |
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===Defunct operations=== |
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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> |
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The New York Times reported in 2006 that then Zopa CEO Richard Duvall announced that Zopa "planned to start a site in the United States to compete with Prosper this year."<ref name="NewYorkTimes2006February13TedeschiBob" /> In 2008 the New York Times reported that Zopa had withdrawn from the United States "citing adverse market conditions, and two San Francisco-area companies, Lending Club and Prosper, have encountered problems with securities regulators and were forced to stop all trading on their sites."<ref name="NewYorkTimes2008October16StoneBrad">{{cite news|last1=Stone|first1=Brad|title=Is Peer-to-Peer Lending Working for You?|url=https://bits.blogs.nytimes.com/2008/10/16/is-peer-to-peer-lending-working-for-you/|accessdate=9 March 2017|agency=The New York Times Company|issue=Bits|publisher=New York Times|date=16 October 2008|location=New York, N.Y., United States|language=English}}</ref> |
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In 2006 it launched in Italy and also Japan.<ref name="NewYorkTimes2008October16">{{cite news|title=Lending Alternative Hits Hurdle|url=https://dealbook.nytimes.com/2008/10/16/lending-alternative-hits-hurdle/|accessdate=9 March 2017|agency=The New York Times Company|issue=DealBook|publisher=New York Times|date=16 October 2008|location=New York, N.Y., United States|language=English}}</ref> But these operations have since closed.{{Citation needed|date=March 2017}} |
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===Finances=== |
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;Funding |
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In 2006 the New York Times reported that [[Benchmark Capital]] was backing Zopa.<ref name="NewYorkTimes2006February13TedeschiBob">{{cite news|last1=Tedeschi|first1=Bob|title=It's Like Lending to a Friend, Except You'll Get Interest|url=http://www.nytimes.com/2006/02/13/technology/its-like-lending-to-a-friend-except-youll-get-interest.html|accessdate=9 March 2017|agency=The New York Times Company|issue=Technology|publisher=New York Times|date=13 February 2006|location=New York, N.Y., United States|language=English}}</ref> |
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In 2012 the New York Times reported that RIT Capital Partners in 2012 invested in Zopa though the venture capital vehicle Augmentum Capital.<ref name="NewYorkTimes2012December10WerdigierJulia">{{cite news|last1=Werdigier|first1=Julia|title=RIT Capital to Take Stake in British Financial Start-Up|url=https://dealbook.nytimes.com/2012/12/10/rit-capital-to-take-stake-in-british-financial-start-up/|accessdate=9 March 2017|agency=The New York Times Company|issue=DealBook|publisher=New York Times|date=10 December 2012|location=New York, N.Y., United States|language=English}}</ref> |
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In 2014 the Financial Times reported that the London-based hedge fund Arrowgrass Capital Partners had invested £15m.<ref name="FinancialTimes2014January29MooreElaine">{{cite news|last1=Moore|first1=Elaine|title=P2P group Zopa secures £15m investment from Arrowgrass Capital|url=https://www.ft.com/content/aca2a964-88d5-11e3-bb5f-00144feab7de|accessdate=9 March 2017|agency=Nikkei|publisher=Financial Times|date=29 January 2014|location=United Kingdom|language=English}}</ref> |
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Zopa is backed by [[Bessemer Venture Partners]] and [[Runa Capital]].{{Citation needed|date=March 2017}} |
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===Partnerships=== |
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;Partnerships |
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It has established partnerships with other challenger businesses, including Pariti (https://pariti.com)<ref>{{Cite news|url=https://www.finextra.com/newsarticle/29402/pariti-taps-into-zopa-api-to-help-millennials-pay-off-card-debt|title=Pariti taps into Zopa API to help millennials pay off card debt|last=Finextra|date=2016-09-07|work=Finextra Research|access-date=2017-08-02|language=en}}</ref>, Uber,<ref name="CityAM2015May06HallJoe">{{cite news|last1=Hall|first1=Joe|title=Uber teams up with peer-to-peer lender Zopa to help drivers buy their own cars|url=http://www.cityam.com/215214/uber-teams-peer-peer-firm-zopa-help-drivers-buy-their-own-cars|accessdate=8 March 2017|agency=City A.M. Limited|publisher=City A.M.|date=6 May 2015|location=United Kingdom|language=English}}</ref> Airbnb<ref name="CrowdfundInsider2016October07HurstSamantha">{{cite news|last1=Hurst|first1=Samantha|title=Zopa Announces New Partnership With Airbnb to Help Customers Pay Back Home Loans|url=https://www.crowdfundinsider.com/2016/10/90994-zopa-announces-new-partnership-airbnb-help-customers-pay-back-home-loans/|accessdate=8 March 2017|agency=Crowded Media Group|issue=|publisher=Crowdfund Insider|date=7 October 2016|language=English}}</ref> and Metro Bank<ref name="FinancialTimes2015May18DunkleyEmma">{{cite news|last1=Dunkley|first1=Emma|title=Metro Bank strikes deal to lend through P2P site|url=https://www.ft.com/content/efadf6fc-fd67-11e4-9e96-00144feabdc0|accessdate=8 March 2017|agency=Nikkei|issue=Banks|publisher=Financial Times|date=18 May 2015|location=United Kingdom|language=English}}</ref> |
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;Peer-to-Peer Finance Association |
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Zopa is a founding member of the [http://p2pfa.info/ Peer-to-Peer Finance Association], which was established in 2011. Giles Andrews, Zopa’s then CEO was its inaugural chair. Along with the other P2PFA members, Zopa publishes details of its loan book on the P2PFA website each month.<ref>{{Cite web|title = Peer-to-peer Finance Association|url = http://p2pfa.info/}}</ref> |
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==Corporate affairs== |
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===Corporate leadership=== |
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====CEOs==== |
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Since founding in 2004 |
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*Richard Duvall - Co-Founder (2004 – Oct 2006)<ref name="NewYorkTimes2006February13TedeschiBob" /> |
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*James Alexander (Oct 2006 - Mar 2007) |
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*Doug Dolton (Mar 2007-2008) |
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*Giles Andrews - Co-Founder (2008 – Aug 2015)<ref name="NewYorkTimes2014May03CorteseAmy">{{cite news|last1=Cortese|first1=Amy|title=Loans That Avoid Banks? Maybe Not|url=https://www.nytimes.com/2014/05/04/business/loans-that-avoid-banks-maybe-not.html|accessdate=9 March 2017|agency=The New York Times Company|issue=Business Day|publisher=New York Times|date=3 May 2014|location=New York, N.Y., United States|page=BU1|language=English}}</ref> |
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*Jaidev Janardana (Aug 2015 - date) |
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==Corporate identity== |
==Corporate identity== |
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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> |
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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> |
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===Headquarters=== |
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The company is currently based in London Bridge<ref name="CrowdfundInsider2016August04HurstSamantha">{{cite news|last1=Hurst|first1=Samantha|title=Zopa Relocates: Moves Into New London Bridge Digs|url=|accessdate=8 March 2017|agency=Crowded Media Group|issue=|publisher=Crowdfund Insider|date=4 August 2016|language=English}}</ref> |
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===Brand=== |
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====Zopa etymology==== |
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Its name stands for "[[Zone of possible agreement]]", a negotiating term identifying the bounds within which agreement can be reached between two parties. |
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====Logo design==== |
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{{center| |
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<gallery widths=200> |
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File:Zopa_Corporate_Historic_Logo.svg|?–2014–? |
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File:Zopa Corporate Logo.svg|?–present |
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</gallery> |
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}} |
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==Industry== |
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By 2014 the Financial Times reported that the largest peer-to-peer loan platform was Lending Club and within Europe it was Zopa.<ref name="FinancialTimes2014January29MooreElaine" /> |
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===Market Composition=== |
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In 2008 the New York Times reported that "[[Prosper Marketplace|Prosper]], Zopa, [[Lending Club]] and others bring together would-be lenders with small-business borrowers."<ref name="NewYorkTimes2008September30FostDan">{{cite news|last1=Fost|first1=Dan|title=Likes Taking Risks, Profitable Returns|url=http://www.nytimes.com/2008/10/01/business/smallbusiness/01webfund.html|accessdate=9 March 2017|agency=The New York Times Company|issue=Small Business|publisher=New York Times|date=30 September 2008|location=New York, N.Y., United States|page=SPG5|language=English}}</ref> |
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==See also== |
==See also== |
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* [[Comparison of crowd funding services]] |
* [[Comparison of crowd funding services]] |
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* [[Neobanks in Europe]] |
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* [[Peer-to-peer lending]] |
* [[Peer-to-peer lending]] |
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==References== |
==References== |
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{{reflist}} |
{{reflist}} |
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{{Peer-to-peer lending companies}} |
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==External links== |
==External links== |
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{{commons category-inline}} |
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*Loanbooks {{URL|http://www.altfi.com/data/loanbooks}} |
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* {{Official website}} |
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{{Peer-to-peer lending companies}} |
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[[Category:Peer-to-peer lending companies]] |
[[Category:Peer-to-peer lending companies]] |
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[[Category:British companies established in 2005]] |
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[[Category:Banks based in the City of London]] |
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Latest revision as of 13:06, 14 December 2024
 | |
| Company type | Ltd. |
|---|---|
| Industry | Personal financial services |
| Founded | March 2005[1][2] |
| Founders | Richard Duvall James Alexander Giles Andrews David Nicholson Tim Parlett |
| Headquarters | Cottons Centre, , United Kingdom |
Key people | Jaidev Janardana (CEO)[3] |
| Products | P2P lending,[4] retail banking |
| Revenue |  £222M [5] (2023) |
| £15.8M (2023) | |
| Website | www |
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]- ^ 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.
- ^ 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.
- ^ "Zopa CEO Jaidev Janardana: Leading UK P2P Lending with Superior Service, Transparency and Cutting-Edge Fintech". McGill University.
- ^ 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.
- ^ "Zopa Bank reports first full year profit". www.cnbc.com. 14 November 2024. Retrieved 14 November 2024.
- ^ 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.
- ^ Prosser, David. "Happy Birthday Zopa, The Inventor Of P2P". Forbes. Retrieved 11 April 2018.
- ^ "Q&A: Online lending exchange". BBC News. United Kingdom: BBC. 7 March 2005. Retrieved 4 July 2016.
- ^ Evans, Judith (14 August 2015). "My Money — Giles Andrews, Zopa chief". Financial Times. Nikkei. Retrieved 8 March 2017.
- ^ "Zopa opera". computing.co.uk. 6 September 2007. Retrieved 3 October 2015.
- ^ "P2P lending: where will the P2P industry go next? - Verdict". www.verdict.co.uk. 19 February 2018. Retrieved 11 April 2018.
- ^ Ficenec, John (26 July 2015). "How safe is peer-to-peer lending?". The Daily Telegraph. ISSN 0307-1235. Retrieved 11 April 2018.
- ^ Jones, Rupert (15 February 2014). "The major peer-to-peer lenders". The Guardian. Retrieved 11 April 2018.
- ^ Hale, Thomas (26 September 2016). "Debut securitisation for Zopa loans". United Kingdom: Financial Times. Nikkei. Retrieved 10 November 2016.
- ^ "Peer-to-peer lender Zopa passes £2 billion loans milestone". Business Insider. Retrieved 11 April 2018.
- ^ Williams, Aime. "Zopa gets FCA approval as peer-to-peer lender". Financial Times. Retrieved 15 May 2017.
- ^ Barber, Lynsey (11 May 2017). "Zopa just got full approval as a P2P lender from the FCA". City A.M. Retrieved 11 April 2018.
- ^ Suter, Laura (26 May 2017). "Zopa Isa offering up to 6.1pc finally available". The Telegraph. ISSN 0307-1235. Retrieved 11 April 2018.
- ^ Hurley, James (17 November 2016). "Peer-to-peer lender Zopa to launch bank". The Times. ISSN 0140-0460. Retrieved 11 April 2018.
- ^ Dunkley, Emma (16 November 2016). "Peer-to-peer lending pioneer seeks banking licence". Financial Times.
- ^ "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.
- ^ "Zopa, the UK P2P lending company, secures bank license". TechCrunch. Retrieved 4 December 2018.
- ^ Megaw, Nicholas (23 June 2020). "P2P lender Zopa wins UK banking licence". Financial Times. Retrieved 22 September 2020.
- ^ Lanyon, Daniel (22 March 2021). "Zopa raises £20m to expand digital bank, eyes profits". AltFi. Retrieved 27 March 2021.
- ^ Finn, Aisling (29 June 2021). "Zopa is setting its sights on a 2022 IPO". AltFi. Retrieved 7 July 2021.
- ^ 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.
- ^ a b Lunden, Ingrid (2 February 2023). "Zopa, the UK neobank, raises $93M more at a $1B+ valuation". TechCrunch. Retrieved 4 February 2023.
- ^ a b "Zopa exits peer-to-peer lending". AltFi. 7 December 2021. Retrieved 7 December 2021.
- ^ "Zopa acquires BNPL DivideBuy". AltFi. Retrieved 16 February 2023.
- ^ https://techcrunch.com/2024/12/05/zopa-the-uk-neobank-snaps-up-85m-at-a-1b-valuation-eschewing-the-ipo-route/
- ^ Lewis, Martin. "Peer to peer lending: boost savings returns? - MSE". MoneySavingExpert.com. Retrieved 11 April 2018.
- ^ "comparethemarket.com - Zopa loans". www.comparethemarket.com. Retrieved 11 April 2018.
- ^ Beioley, Kate. "P2P platform Zopa re-opens to new customers". Financial Times.
- ^ "Peer-to-peer lending explained - Which?". Which?. 21 June 2016. Retrieved 11 April 2018.
- ^ "Zopa is 'pretty close to finishing' building its new bank". Business Insider. Archived from the original on 18 October 2017. Retrieved 11 April 2018.
- ^ "Zopa boss Janardana details plans for customer-centric bank - AltFi Opinion". AltFi. Retrieved 11 April 2018.
- ^ Hurst, Samantha (4 August 2016). "Zopa Relocates: Moves Into New London Bridge Digs". Crowdfund Insider. Crowded Media Group.
- ^ "Zopa Establishes Development Center in Barcelona". Crowdfund Insider. 7 June 2017. Retrieved 15 May 2018.
- ^ 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.
External links
[edit]
Media related to Zopa Bank at Wikimedia Commons
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