UK P2P firm Zopa eyes deposits and overdrafts as loans hit £2bn
Zopa, the UK's first peer-to-peer lending platform, has become the first to break the £2bn lending milestone. The firm, launched 12 years ago, has "matured into a profitable company", originating more than 300,000 loans and returning £129m in interest to investors. Zopa CEO Jaidev Janardana said the company's journey was "just beginning" as it launches a next generation bank. Janardana said Zopa would work with the FCA and RPA to obtain the necessary licence, before "offering FSCS protected deposit accounts and overdraft alternatives in 2018".
Zopa, the UK’s very first peer to peer lending platform, has topped £2 billion in lending. According to information provided by the online lending platform, as of today, Zopa has matched over 246,000 borrowers to 75,000 investors to provide access to capital in the form of loans. During the past 12 years, Zopa has originated more than 300,000 loans while returning £129 million in interest to investors. Zopa states it has delivered positive returns to lenders every year since launch in 2005, including through the 2008 financial crisis.

Over the last 12 months’ Zopa customers have borrowed over £703 million in unsecured loans. Zopa points to their “total commitment to putting the customer at the heart of everything it does.” Zopa has been named Most Trusted Personal Loans Provider seven years in a row by Moneywise and voted Personal Loan Provider of the Year four times by Moneyfacts.

Zopa also says it has “matured into a profitable company” providing customers with better value and a simple process for accessing credit. Late last year, Zopa announced its intent to launch a challenger bank or Zopa Bank to extend its services to their growing user base. Zopa Bank is expected to “disrupt the established banks, bringing Zopa’s transparency and value to even more people in the UK.”

“We’re excited to be the first UK peer-to-peer lender to pass the £2bn milestone. Over the last 12 years, we’re proud to say we’ve helped over a third of a million people get better interest rates for both borrowing and lending,” said Jaidev Janardana, Zopa’s CEO. “The £2 billion milestone demonstrates how far we have come, but our journey is only just getting started. Our decision to launch a next generation bank reflects our mission to create better options for consumers and to shape the future of finance.”

Speaking to Crowdfund Insider, Janardana said recently;

“Meeting the borrowing needs of an ever-growing number of customers will be a key objective in 2017 as will beginning our application for a banking license. We’ll be working closely with the FCA and the PRA over the next year with a view to acquiring a banking license and offering FSCS protected deposit accounts and overdraft alternatives in 2018.”

Zopa, largely a consumer lender, breaks down the loan categories as follows: