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Peer2Peer Finance News | September 19, 2019

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Zopa says fintech revolution has killed off monogamous banking

Zopa says fintech revolution has killed off monogamous banking
Suzie Neuwirth

ZOPA has declared that “monogamous banking is a thing of the past”, as new research reveals that the average UK adult has a relationship with seven different financial providers.

The peer-to-peer consumer lender, which is launching a digital bank, said that the fintech revolution has changed the shape of financial services for consumers.

It cited a survey that found 71 per cent of UK adults said they do not need a relationship with their main bank, while two thirds are actively using products from banks and financial providers other than their main current account provider.

Read more: Zopa hits £250m interest milestone

The most popular products to hold away from the current account provider are insurance and investments.

2,009 UK adults were surveyed by Opinium Research last month.

Zopa also heralded the benefits of Open Banking – the data-sharing initiative that mandates high street banks to share anonymised customer data with approved third parties.

It said that Open Banking will enable people to access a more complete view of their financial products and drive them towards financial providers that can deliver transformative value.

Read more: Special report on Open Banking

Later this year, Zopa will launch its own savings and credit card products, as well as a money management app utilising Open Banking.

“The last decade of fintech revolution has fundamentally changed the way that people bank in the UK,” said Zopa’s chief executive Jaidev Janardana (pictured).

“Technology is enabling consumers to take control of their own finances, resulting in traditional banking relationships becoming purely functional.  The apathy on which the traditional banking model has relied will soon be resigned to the past.

Read more: Zopa turns Open Banking focus to investors

“Consumers now have more choice and are actively choosing to shop around for products and providers outside of the main banking relationship. The key to Zopa building a successful next gen bank will be delivering transformative value. We’ve demonstrated this already with our loans business – which has lent over £4bn to UK consumers, proving that savvy customers will consider new alternatives.”