UK P2P lending firm Zopa closes £ 60million round on bank launch track – TechCrunch

Obtaining a banking license and then launching a real new retail bank requires capital. Lots of capital. Enter Zopa, the British peer-to-peer lending company that wants to become a bank, which today announces that it has closed £ 60million in additional funding. Only £ 16million is actually new New money, already having disclosed £ 44million in August, so it’s actually an extension of that previous fundraiser.

The goal remains the same, however: Zopa says he will use the latest round of investment for the capital needs of his “next generation bank” yet to be launched. The company started applying for a banking license from UK regulators in 2016. The new funding also stems from what fintech claims to be its sustainable and profitable peer-to-peer business, having achieved annual profitability in 2017 for the first time. since 2012.

A pioneer in the space – launched since 2005 – Zopa says he has served nearly half a million customers, either through loans or by investing in peer-to-peer lending. He has lent over £ 3.7bn in unsecured personal loans to clients in the UK

Zopa’s next phase is to become a new digital bank, alongside its peer-to-peer business, so that it can offer “a unique and broader set of products to customers”.

“Our bank will allow us to give more people a better experience with their finances by introducing simpler and fairer products, such as savings accounts and credit cards,” a spokesperson for the company told me. ‘business.

At launch, this will include offering FSCS-protected savings accounts and P2P investments (including IFISAs for investors), as well as personal loans, auto finance and credit cards for those seeking to borrow.

“Our money management application will give our clients a more personalized approach to managing their money,” adds the spokesperson.

Zopa CEO Cue Jaidev Janardana (pictured above): “This new funding brings us closer to our vision of being the best place for money in the UK. Having served half a million clients to date, Zopa is poised to redefine the finance industry once again through our next generation bank to meet a wider range of UK client financial needs. .

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