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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/|accessdate=10 November 2016|agency=Nikkei|publisher=Financial Times|date=26 September 2016|location=United Kingdom|language=English}}</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|title=Debut securitisation for Zopa loans|url=http://www.ft.com/fastft/2016/09/26/zopa-prices-debut-peer-to-peer-loan-securitsation/|accessdate=10 November 2016|agency=Nikkei|publisher=Financial Times|date=26 September 2016|location=United Kingdom|language=English}}</ref>


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> in order to offer customers a broader set of personal finance products.<ref>{{Cite news|url=https://www.ft.com/content/53aa3dec-ac07-11e6-9cb3-bb8207902122|title=Peer-to-peer lending pioneer seeks banking licence|last=Dunkley|first=Emma|date=|work=Financial Times|access-date=|archive-url=|archive-date=|dead-url=}}</ref>
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> in order to offer customers a broader set of personal finance products.<ref>{{Cite news|url=https://www.ft.com/content/53aa3dec-ac07-11e6-9cb3-bb8207902122|title=Peer-to-peer lending pioneer seeks banking licence|last=Dunkley|first=Emma|work=Financial Times}}</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|url=https://www.ft.com/content/06db527a-363c-11e7-99bd-13beb0903fa3|accessdate=15 May 2017|publisher=Financial Times}}</ref><ref>{{Cite news|url=http://www.cityam.com/264542/zopa-just-got-full-approval-p2p-lender-financial-conduct|title=Zopa just got full approval as a P2P lender from the FCA|last=Barber|first=Lynsey|date=2017-05-11|access-date=2018-04-11|language=en}}</ref> Following FCA authorisation, and [[HM Revenue and Customs|HMRC]] approval as an [[Individual Savings Account]] (ISA) manager, Zopa started offering its 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 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|url=https://www.ft.com/content/06db527a-363c-11e7-99bd-13beb0903fa3|accessdate=15 May 2017|publisher=Financial Times}}</ref><ref>{{Cite news|url=http://www.cityam.com/264542/zopa-just-got-full-approval-p2p-lender-financial-conduct|title=Zopa just got full approval as a P2P lender from the FCA|last=Barber|first=Lynsey|date=2017-05-11|access-date=2018-04-11|language=en}}</ref> Following FCA authorisation, and [[HM Revenue and Customs|HMRC]] approval as an [[Individual Savings Account]] (ISA) manager, Zopa started offering its 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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===Business Model===
===Business Model===
;Peer-to-peer lending
;Peer-to-peer lending
Zopa enables investors to lend to UK consumers directly 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|date=|work=MoneySavingExpert.com|access-date=2018-04-11|archive-url=|archive-date=|dead-url=|language=en}}</ref>
Zopa enables investors to lend to UK consumers directly 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>


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|url=https://dealbook.nytimes.com/2012/12/10/rit-capital-to-take-stake-in-british-financial-start-up/|title=RIT Capital to Take Stake in British Financial Start-Up|last1=Werdigier|first1=Julia|date=10 December 2012|accessdate=9 March 2017|publisher=New York Times|agency=The New York Times Company|issue=DealBook|location=New York, N.Y., United States|language=English}}</ref>
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|url=https://dealbook.nytimes.com/2012/12/10/rit-capital-to-take-stake-in-british-financial-start-up/|title=RIT Capital to Take Stake in British Financial Start-Up|last1=Werdigier|first1=Julia|date=10 December 2012|accessdate=9 March 2017|publisher=New York Times|agency=The New York Times Company|issue=DealBook|location=New York, N.Y., United States|language=English}}</ref>


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|date=|work=Financial Times|access-date=|archive-url=|archive-date=|dead-url=}}</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?|language=en|access-date=2018-04-11}}</ref> Investors then receive monthly repayments of interest and capital, which they can relend to compound the interest.
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?|language=en|access-date=2018-04-11}}</ref> Investors then receive monthly repayments of interest and capital, which they can relend to compound the interest.


===Bank launch===
===Bank launch===

Revision as of 03:59, 14 October 2019

For other uses, see Zopa (disambiguation).
Zopa Limited
Company typeLtd.
IndustryPeer-to-peer lending
FoundedMarch 2005; 19 years ago (2005-03)[1][2]
FoundersGiles Andrews
James Alexander
Richard Duvall
David Nicholson
Tim Parlett
HeadquartersCottons Centre,
Tooley Street, London
,
England, UK
Key people
Jaidev Janardana(CEO)[3]
ProductsP2P lending[4]
Websitewww.zopa.com

Zopa is a UK based peer-to-peer lending company founded in 2004[5] which has a banking licence[6]. It launched in the UK in March 2005.[7] Zopa was the first peer-to-peer lending company.[8]

History

Zopa was launched in the UK in March 2005.[9] It was founded in Buckinghamshire in 2004 by a team from the internet banking company Egg Banking.[10][11]

Zopa grew steadily[12] 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.[13]

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

In November 2016, Zopa announced that it would apply for a banking license [15] in order to offer customers a broader set of personal finance products.[16]

In January 2017, Zopa became the first UK based peer-to-peer lending company to lend more than £2 billion worth of loans.[17] Zopa became fully regulated by the Financial Conduct Authority in May 2017.[18][19] Following FCA authorisation, and HMRC approval as an Individual Savings Account (ISA) manager, Zopa started offering its Innovative Finance ISA products in June 2017.[20]

Products and services

Business Model

Peer-to-peer lending

Zopa enables investors to lend to UK consumers directly through its peer-to-peer lending platform.[21]

Borrowers can take out loans between £1,000 and £25,000.[22] Typically individuals use these to funds to help buy a car, consolidate debts, cover home improvements or weddings.[2]

Investors can choose from four investment products[23] based on their risk and return appetite. Investors’ money is split across multiple borrowers.[24] Investors then receive monthly repayments of interest and capital, which they can relend to compound the interest.

Bank launch

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.[25]

Zopa’s bank is scheduled to launch in 2019 and will sit alongside its peer-to-peer lending business. Zopa plans to offer FSCS protected deposit accounts, credit cards,[26] and a money management app which makes use of data made available by the introduction of Open Banking.[27] As per August 2018, Zopa scooped £44 million in funding for the launch of its new digital challenger bank.[28]

In December 2018 the company was awarded with licences from UK financial regulators, the FCA and PRA.[6]

Corporate identity

Headquarters

The company's main office is currently based at London Bridge[29]

Zopa also has a Development Centre in Barcelona, Spain. The centre has been running since 2017.[30]

Brand

Zopa etymology

Its name stands for "Zone of possible agreement", a negotiating term identifying the bounds within which agreement can be reached between two parties.

See also

References

  1. ^ Akst, Daniel (5 February 2006). "Where Lender Meets Borrower, Directly". No. Business Day. New York, N.Y., United States: New York Times. 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". No. DealBook. New York, N.Y., United States: New York Times. 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 {{citation}}: Cite has empty unknown parameter: |1= (help)
  4. ^ Scott, Mark (9 June 2014). "A Lift for One of London's Financial Tech Start-Ups". No. DealBook. New York, N.Y., United States: New York Times. The New York Times Company. p. B3. Retrieved 9 March 2017.
  5. ^ Cave, Andrew (2016-03-05). "Zopa aims for enough growth to stop explaining its name". The Telegraph. ISSN 0307-1235. Retrieved 2018-04-11.
  6. ^ a b "Zopa, the UK P2P lending company, secures bank license". TechCrunch. Retrieved 2018-12-04.
  7. ^ Jones, Rupert (2014-02-15). "The major peer-to-peer lenders". the Guardian. Retrieved 2018-04-11.
  8. ^ "Q&A: Online lending exchange". United Kingdom: BBC. BBC. 7 March 2005. Retrieved 4 July 2016.
  9. ^ Prosser, David. "Happy Birthday Zopa, The Inventor Of P2P". Forbes. Retrieved 2018-04-11.
  10. ^ Evans, Judith (14 August 2015). "My Money — Giles Andrews, Zopa chief". Financial Times. Nikkei. Retrieved 8 March 2017.
  11. ^ "Zopa opera". computing.co.uk. Retrieved 2015-10-03.
  12. ^ "P2P lending: where will the P2P industry go next? - Verdict". www.verdict.co.uk. Retrieved 2018-04-11.
  13. ^ Ficenec, John (2015-07-26). "How safe is peer-to-peer lending?". ISSN 0307-1235. Retrieved 2018-04-11.
  14. ^ Hale, Thomas (26 September 2016). "Debut securitisation for Zopa loans". United Kingdom: Financial Times. Nikkei. Retrieved 10 November 2016.
  15. ^ Hurley, James (17 November 2016). "Peer-to-peer lender Zopa to launch bank". No. Business. United Kingdom: The Times. Times Newspapers Limited. Retrieved 8 March 2017.
  16. ^ Dunkley, Emma. "Peer-to-peer lending pioneer seeks banking licence". Financial Times.
  17. ^ "Peer-to-peer lender Zopa passes £2 billion loans milestone". Business Insider. Retrieved 2018-04-11.
  18. ^ Williams, Aime. "Zopa gets FCA approval as peer-to-peer lender". Financial Times. Retrieved 15 May 2017.
  19. ^ Barber, Lynsey (2017-05-11). "Zopa just got full approval as a P2P lender from the FCA". Retrieved 2018-04-11.
  20. ^ Suter, Laura (2017-05-26). "Zopa Isa offering up to 6.1pc finally available". The Telegraph. ISSN 0307-1235. Retrieved 2018-04-11.
  21. ^ Lewis, Martin. "Peer to peer lending: boost savings returns? - MSE". MoneySavingExpert.com. Retrieved 2018-04-11.
  22. ^ "comparethemarket.com - Zopa loans". www.comparethemarket.com. Retrieved 2018-04-11.
  23. ^ Beioley, Kate. "P2P platform Zopa re-opens to new customers". Financial Times.
  24. ^ "Peer-to-peer lending explained - Which?". Which?. Retrieved 2018-04-11.
  25. ^ Editor, James Hurley, Enterprise (2016-11-17). "Peer-to-peer lender Zopa to launch bank". The Times. ISSN 0140-0460. Retrieved 2018-04-11. {{cite news}}: |last= has generic name (help)CS1 maint: multiple names: authors list (link)
  26. ^ "Zopa is 'pretty close to finishing' building its new bank". Business Insider. Retrieved 2018-04-11.
  27. ^ "Zopa boss Janardana details plans for customer-centric bank - AltFi Opinion". AltFi. Retrieved 2018-04-11.
  28. ^ "Digital Bank: Zopa Raises £44 Million to Help Fuel Expansion, "Launching Our Bank is a Key Next Step" | Crowdfund Insider". Crowdfund Insider. 2018-08-03. Retrieved 2018-08-07. {{cite news}}: no-break space character in |title= at position 104 (help)
  29. ^ Hurst, Samantha (4 August 2016). "Zopa Relocates: Moves Into New London Bridge Digs". Crowdfund Insider. Crowded Media Group.
  30. ^ "Zopa Establishes Development Center in Barcelona | Crowdfund Insider". Crowdfund Insider. 2017-06-07. Retrieved 2018-05-15.
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