Zopa
British financial services company
From Wikipedia, the free encyclopedia
Zopa Bank Ltd. (/ˈzoʊpə/[6]) is a British online bank which offers deposit accounts, personal loans and credit cards. It began as the world's first peer-to-peer lending company in 2005 and gained a full banking licence in 2020. The peer-to-peer side of its business closed in December 2021.
James Alexander
Giles Andrews
David Nicholson
Tim Parlett
 | |
| Company type | Private |
|---|---|
| Industry | Personal financial services |
| Founded | March 2005[1][2] |
| Founders | Richard Duvall James Alexander Giles Andrews David Nicholson Tim Parlett |
| Headquarters | Level 12, 20 Water Street, , United Kingdom |
Key people | Jaidev Janardana (CEO)[3] |
| Products | P2P lending,[4] retail banking |
| Revenue |  £303.4 million (2024)[5] |
| £34.2 million (2024)[5] | |
| Website | www |
History
Zopa was launched in the UK in March 2005 as an arranger of peer-to-peer lending, connecting investors with individuals seeking loans.[7][8] It was founded in Buckinghamshire in 2004 by a team from the internet banking company Egg Banking.[9][10]
Zopa grew steadily[11] in the years prior to the 2008 financial crisis. It navigated the period with no losses to investors' capital and only a small dip in returns during 2008.[12][13]
In September 2016, the first portfolio of Zopa loans was securitised on the European markets.[14]
In January 2017, Zopa became the first UK based peer-to-peer lending company to lend more than £2 billion worth of loans.[15] Zopa became fully regulated by the Financial Conduct Authority in May 2017.[16][17] Following FCA authorisation, and HMRC approval as an Individual Savings Account (ISA) manager, Zopa started offering Innovative Finance ISA products in June 2017.[18]
In November 2016, Zopa announced its intention to apply for a banking licence so it could expand the range of financial products it offers to UK consumers.[19][20] In August 2018, Zopa obtained £44 million in funding for the launch of its new digital challenger bank.[21] In December 2018 the company was awarded interim banking licences by the UK financial regulators, the FCA and PRA.[22]
Retail banking services – including deposit accounts and a credit card – were launched in June 2020, soon after a full banking licence was awarded.[23] By March 2021, Zopa had attracted around £250m in fixed-term savings accounts and had become a "top ten" credit card issuer. In the same month, the company raised £20m further capital from its existing lenders.[24]
In June 2021, CEO Jaidev Janardana stated that Zopa could be taken public as early as the last quarter of 2022.[25] In October of that year, the company raised $300 million from Softbank Vision Fund and other investors, implying a $1 billion valuation.[26] A further £75m was raised from existing investors, not including Softbank, in early 2023.[27]
In December 2021, Zopa announced it would be winding up the peer-to-peer side of its business, including buying back the existing loans of investors.[28]
In early 2023, Zopa had around 850,000 customers, over £3 billion in deposits and £2 billion on loan. The company indicated that it expected to make a profit over the full year for the first time in its history.[27]
In February 2023, it was announced Zopa had acquired the Newcastle-under-Lyme-headquartered, 'buy now, pay later’ (BNPL) platform DivideBuy.[29]
In December 2024, Zopa raised $87 million in equity at a valuation exceeding $1 billion, prioritizing profitability and growth over an IPO amidst a sluggish tech IPO market.[30]
Products and services
Peer-to-peer lending
Zopa enabled investors to lend to UK consumers through its peer-to-peer lending platform.[31] By 2021, around £6 billion in loans had been processed.[26] Borrowers could take out loans between £1,000 and £25,000.[32] Typically individuals used these to funds to help buy a car, consolidate debts, cover home improvements or weddings.[2]
Investors could choose from four investment products[33] based on their risk and return appetite. Investors' money was split across multiple borrowers.[34] Investors then received monthly repayments of interest and capital, which they could re-lend to compound the interest.
In December 2021, Zopa announced that it would withdraw from peer-to-peer lending.[28]
Banking and credit cards
Zopa offers FSCS-protected deposit accounts, personal loans, credit cards,[35] and a money management app which makes use of data made available by the introduction of Open Banking.[36] A current account was launched in March 2025.[37]
Corporate identity
The company's main office is at London Bridge.[38] Since 2017, Zopa also has a development centre in Barcelona, Spain.[39]
The company's name comes from "zone of possible agreement", a negotiating term identifying the bounds within which agreement can be reached between two parties.[40]
