Zopa starts journey with CommuterClub
ZOPA will help cover the cost of getting to work through its new partnership with CommuterClub.
CommuterClub, which counts tennis star Andy Murray amongst its investors, provide loans for annual season train tickets.
The peer-to-peer consumer lender started funding loans to CommuterClub’s pool of low-risk borrowers on 3 August.
Whereas Zopa’s current shortest-term loan is a year, CommuterClub loans run for 10 months.
Zopa said that because the loans are designed to help commuters save money, implying a fairly high level of disposable income to begin with, losses tend to be very low.
And if a borrower does fall into difficulty repaying, the ticket can be cancelled and refunded, covering the amount left on the loan.
CommuterClub loans will be classified as A*, Zopa’s lowest-risk category, and included in both its Core and Plus accounts.
“As we grow, it’s important that we find and build relationships with like-minded organisations to help further develop our business,” said Zopa in a blog post on its website.
“Our partnership with CommuterClub is just the latest example of how we’re helping people get better value financial products and enjoy a stress-free experience.”
Read more: Zopa back in the black after “landmark” year
Imran Gulamhuseinwala, global head of fintech at EY and implementation trustee of Open Banking, was one of the founders of CommuterClub. Click here to read our recent interview with him.