Zopa intends to launch a bank, and has said it expects to pass through the necessary regulatory application process in the next 15-24 months.

The P2P lender said the bank will offer FSCS protected deposit accounts for savers and overdraft alternatives to borrowers.

It added that adding a bank to the P2P lending platform would help diversify its funding sources, on top of the individual and institutional investors it already attracts.

Jaidev Janardana, chief executive officer of Zopa, said: We launched in 2005 to create a richer life for everyone by making money simple and fair. We have built a profitable, scalable and viable business. Yet we’ve only just begun. We want to launch a next generation bank to drive greater choice for borrowers, savers and investors, which is good for consumers and good for the economy.

Since its 2005 launch, Zopa has lent over £1.82bn to UK consumers, including over £650m over the past 12 months. The average loan size is £7,300, with money for a car being one of the top three reasons for a loan.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.