Zopa has been granted its full UK bank licence, paving the way for the official launch of the company’s new digital bank later this year.
The new bank is set to offer a fixed-term savings account which is protected by the Financial Services Compensation Scheme (FSCS). The Zopa Fixed Term Savings Account will offer a “competitive” rate over one to five years, and can be opened in as little as seven minutes.
Zopa will also be launching an “innovative” credit card later this year, which is “designed to put customers in control of their borrowing.”
“Now more than ever the banking industry needs innovative, agile providers who work on behalf of customers,” said Jaidev Janardana (pictured), Zopa’s chief executive.
“At a time when people want great value, fair financial services products and simple, intuitive digital experience, Zopa offers consumers a compelling and credible alternative they can trust.
“Securing our banking licence enables Zopa to play a wider role in the financial lives of our customers, as well as offering much needed choice and competition to the wider market.
“Beyond the current pandemic, Zopa is uniquely placed to provide a compelling alternative to traditional banking by leveraging its significant technological and financial services expertise to offer a wider range of great products, including savings and credit cards, alongside its personal loans and investments.”
Zopa was awarded a bank licence with restrictions in December 2018. Since then it has raised £140m to enable its banking entity to fulfil its regulatory capital requirements. This money was provided by IAG Silverstripe Partners, an investment arm of IAG Capital.
Zopa Bank will sit alongside its existing peer-to-peer business, as part of the overall Zopa Group. The P2P platform recently celebrated its 15-year anniversary.