Zopa has raised an additional £20m from existing backers to boost its banking brand.
The funding round was led by IAG Silverstripe and other current investors Augmentum, Waterfall and Venture Founders.
It comes just nine months after the sister brand to the peer-to-peer lending giant gained a full banking licence.
Zopa said it had attracted more than £250m of deposits into its savings accounts and has become a top 10 credit card issuer in the UK in terms of new customers originated.
It said its personal loans business, which is funded by P2P investors, was also growing.
The funds will be used to grow the business and product range further.
Read more: Zopa pauses new IFISA account openings
“Less than a year since launching our bank, we have exceeded our plan for growth, both in terms of customers and balance sheet,” Jaidev Janardana (pictured), chief executive of Zopa, said.
“This capital injection will enable us to continue on this accelerated path. Our strong entry to the UK savings and credit card markets shows the organic appeal of our products and we are happy to have investors who share our excitement at the opportunity to serve more customers across more product categories.”
Zopa said it has now lent more than £5bn to low-risk UK customers via its unsecured loans, credit cards and car finance products.
Read more: How Zopa Bank can crack the savings market