Zopa

Zopa was launched in the UK in March 2005 as an arranger of peer-to-peer lending, connecting investors with individuals seeking loans.{{Cite news|last=Prosser|first=David|title=Happy Birthday Zopa, The Inventor Of P2P|language=en|work=Forbes|url=https://www.forbes.com/sites/davidprosser/2015/03/06/happy-birthday-zopa-the-inventor-of-p2p/#63936e743a76|access-date=2018-04-11}}{{cite news|date=7 March 2005|title=Q&A: Online lending exchange|language=en|work=BBC News|publisher=BBC|location=United Kingdom|url=http://news.bbc.co.uk/1/hi/business/4325761.stm|access-date=4 July 2016}} It was founded in Buckinghamshire in 2004 by a team from the internet banking company Egg Banking.{{cite news|last1=Evans|first1=Judith|date=14 August 2015|title=My Money — Giles Andrews, Zopa chief|language=en|publisher=Financial Times|agency=Nikkei|url=https://www.ft.com/content/a27d55f4-4037-11e5-b98b-87c7270955cf|access-date=8 March 2017}}{{Cite web|title = Zopa opera|url = http://www.computing.co.uk/ctg/analysis/1863087/zopa-opera|access-date = 2015-10-03|website = computing.co.uk|date = 6 September 2007}}

Zopa grew steadily{{Cite web|url=https://www.verdict.co.uk/p2p-lending-industry-grow-up/|title=P2P lending: where will the P2P industry go next? - Verdict|website=www.verdict.co.uk|date=19 February 2018|language=en-GB|access-date=2018-04-11}} in the years prior to the financial crisis of 2007–2008. It navigated the period with no losses to investors' capital and only a small dip in returns during 2008.{{Cite news|last=Ficenec|first=John|date=2015-07-26|title=How safe is peer-to-peer lending?|language=en-GB|newspaper=The Daily Telegraph|url=https://www.telegraph.co.uk/finance/markets/questor/11759729/How-safe-is-peer-to-peer-lending.html|access-date=2018-04-11|issn=0307-1235}}{{Cite web|last=Jones|first=Rupert|date=2014-02-15|title=The major peer-to-peer lenders|url=https://www.theguardian.com/money/2014/feb/15/major-peer-to-peer-lenders-profiled|access-date=2018-04-11|website=The Guardian|language=en}}

In September 2016, the first portfolio of Zopa loans was securitised on the European markets.{{cite news|last1=Hale|first1=Thomas|date=26 September 2016|title=Debut securitisation for Zopa loans|language=en|publisher=Financial Times|agency=Nikkei|location=United Kingdom|url=http://www.ft.com/fastft/2016/09/26/zopa-prices-debut-peer-to-peer-loan-securitsation/|access-date=10 November 2016}}

In January 2017, Zopa became the first UK based peer-to-peer lending company to lend more than £2 billion worth of loans.{{Cite news|url=https://www.businessinsider.com/peer-to-peer-zopa-passes-2-billion-lent-over-platform-2017-1|title=Peer-to-peer lender Zopa passes £2 billion loans milestone|work=Business Insider|access-date=2018-04-11}} Zopa became fully regulated by the Financial Conduct Authority in May 2017.{{cite news|last1=Williams|first1=Aime|title=Zopa gets FCA approval as peer-to-peer lender|work=Financial Times|url=https://www.ft.com/content/06db527a-363c-11e7-99bd-13beb0903fa3|access-date=15 May 2017}}{{Cite news|last=Barber|first=Lynsey|date=2017-05-11|title=Zopa just got full approval as a P2P lender from the FCA|language=en|work=City A.M.|url=http://www.cityam.com/264542/zopa-just-got-full-approval-p2p-lender-financial-conduct|access-date=2018-04-11}} Following FCA authorisation, and HMRC approval as an Individual Savings Account (ISA) manager, Zopa started offering Innovative Finance ISA products in June 2017.{{Cite news|url=https://www.telegraph.co.uk/investing/news/zopa-scraps-key-saver-protection-offers-isas-paying-61pc/|title=Zopa Isa offering up to 6.1pc finally available|last=Suter|first=Laura|date=2017-05-26|work=The Telegraph|access-date=2018-04-11|language=en-GB|issn=0307-1235}}

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.{{Cite news|last=Hurley|first=James |date=2016-11-17|title=Peer-to-peer lender Zopa to launch bank|language=en|work=The Times|url=https://www.thetimes.com/business-money/companies/article/peer-to-peer-lender-zopa-to-launch-bank-3sr7ht5nt|access-date=2018-04-11|issn=0140-0460}}{{Cite news|last=Dunkley|first=Emma|date=16 November 2016|title=Peer-to-peer lending pioneer seeks banking licence|work=Financial Times|url=https://www.ft.com/content/53aa3dec-ac07-11e6-9cb3-bb8207902122}} In August 2018, Zopa obtained £44 million in funding for the launch of its new digital challenger bank.{{Cite news|date=2018-08-03|title=Digital Bank: Zopa Raises £44 Million to Help Fuel Expansion, "Launching Our Bank is a Key Next Step"|language=en-US|work=Crowdfund Insider|url=https://www.crowdfundinsider.com/2018/08/137323-digital-bank-zopa-raises-44-million-to-help-fuel-expansion-launching-our-bank-is-a-key-next-step/|access-date=2018-08-07}} In December 2018 the company was awarded interim banking licences by the UK financial regulators, the FCA and PRA.{{Cite news|title=Zopa, the UK P2P lending company, secures bank license|language=en-US|work=TechCrunch|url=https://techcrunch.com/2018/12/04/zopa-bank/|access-date=2018-12-04}}

Retail banking services – including deposit accounts and a credit card – were launched in June 2020, soon after a full banking licence was awarded.{{cite news|last1=Megaw|first1=Nicholas|date=2020-06-23|title=P2P lender Zopa wins UK banking licence|work=Financial Times|url=https://www.ft.com/content/1146e1f5-85f3-48cb-bb33-7f0d7a5781eb|access-date=22 September 2020}} 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.{{Cite news|last=Lanyon|first=Daniel|date=22 March 2021|title=Zopa raises £20m to expand digital bank, eyes profits|url=https://www.altfi.com/article/7728_zopa-raises-20m-to-expand-digital-bank-eyes-profits|access-date=2021-03-27|website=AltFi|language=en}}

In June 2021, CEO Jaidev Janardana stated that Zopa could be taken public as early as the last quarter of 2022.{{Cite web|last=Finn|first=Aisling|date=29 June 2021|title=Zopa is setting its sights on a 2022 IPO|url=https://www.altfi.com/article/8056_zopa-is-setting-its-sights-on-a-2022-ipo|access-date=2021-07-07|website=AltFi}} In October of that year, the company raised $300{{Nbsp}}million from Softbank Vision Fund and other investors, implying a $1{{Nbsp}}billion valuation.{{Cite web|last=Lunden|first=Ingrid|date=18 October 2021|title=Zopa raises $300M at a $1B valuation to expand its P2P lending and savings neobank in the UK|url=https://techcrunch.com/2021/10/18/zopa-raises-300m-at-a-1b-valuation-to-expand-its-p2p-lending-and-savings-neobank-in-the-uk/|access-date=2021-10-23|website=TechCrunch|language=en-US}} A further £75m was raised from existing investors, not including Softbank, in early 2023.{{Cite web |last=Lunden |first=Ingrid |date=2023-02-02 |title=Zopa, the UK neobank, raises $93M more at a $1B+ valuation |url=https://techcrunch.com/2023/02/01/zopa-the-uk-neobank-raises-93m-more-at-a-1b-valuation/ |access-date=2023-02-04 |website=TechCrunch |language=en-US}}

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.{{Cite web|date=7 December 2021|title=Zopa exits peer-to-peer lending|url=https://www.altfi.com/article/8608_exclusive-zopa-exits-peer-to-peer-lending|access-date=2021-12-07|website=AltFi}}

In early 2023, Zopa had around 850,000 customers, over £3{{Nbsp}}billion in deposits and £2{{Nbsp}}billion on loan. The company indicated that it expected to make a profit over the full year for the first time in its history.

In February 2023, it was announced Zopa had acquired the Newcastle-under-Lyme-headquartered, 'buy now, pay later’ (BNPL) platform DivideBuy.{{Cite web |title=Zopa acquires BNPL DivideBuy |url=https://www.altfi.com/article/10419_zopa-acquires-bnpl-dividebuy |access-date=2023-02-16 |website=AltFi |language=en}}

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.https://techcrunch.com/2024/12/05/zopa-the-uk-neobank-snaps-up-85m-at-a-1b-valuation-eschewing-the-ipo-route/

Zopa enabled investors to lend to UK consumers through its peer-to-peer lending platform.{{Cite news|url=https://www.moneysavingexpert.com/savings/peer-to-peer-lending|title=Peer to peer lending: boost savings returns? - MSE|last=Lewis|first=Martin|work=MoneySavingExpert.com|access-date=2018-04-11|language=en}} By 2021, around £6{{Nbsp}}billion in loans had been processed. Borrowers could take out loans between £1,000 and £25,000.{{Cite web|url=https://www.comparethemarket.com/loans/information/zopa-loans/|title=comparethemarket.com - Zopa loans|website=www.comparethemarket.com|language=en-gb|access-date=2018-04-11}} Typically individuals used these to funds to help buy a car, consolidate debts, cover home improvements or weddings.{{cite news|last1=Werdigier|first1=Julia|date=10 December 2012|title=RIT Capital to Take Stake in British Financial Start-Up|language=en|work=The New York Times|agency=The New York Times Company|issue=DealBook|location=New York, N.Y., United States|url=https://dealbook.nytimes.com/2012/12/10/rit-capital-to-take-stake-in-british-financial-start-up/|access-date=9 March 2017}}

Investors could choose from four investment products{{Cite news|url=https://www.ft.com/content/fe013298-0118-11e8-9650-9c0ad2d7c5b5|title=P2P platform Zopa re-opens to new customers|last=Beioley|first=Kate|work=Financial Times}} based on their risk and return appetite. Investors' money was split across multiple borrowers.{{Cite web|url=https://www.which.co.uk/money/investing/types-of-investment/guides/peer-to-peer-investing/peer-to-peer-lending-explained|title=Peer-to-peer lending explained - Which?|website=Which?|date=21 June 2016|language=en|access-date=2018-04-11}} 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 with the intent to repay all investors no later than 31 January 2022.

Zopa offers FSCS-protected deposit accounts, personal loans, credit cards,{{Cite news|title=Zopa is 'pretty close to finishing' building its new bank|language=en|work=Business Insider|url=http://uk.businessinsider.com/zopa-ceo-jaidev-janardana-on-building-a-new-bank-2017-10|archive-url=https://web.archive.org/web/20171018062945/http://uk.businessinsider.com/zopa-ceo-jaidev-janardana-on-building-a-new-bank-2017-10|url-status=dead|archive-date=18 October 2017|access-date=2018-04-11}} and a money management app which makes use of data made available by the introduction of Open Banking.{{Cite news|title=Zopa boss Janardana details plans for customer-centric bank - AltFi Opinion|language=en-GB|work=AltFi|url=http://www.altfi.com/article/3116_zopa_boss_janardana_sheds_light_on_customer_centric_bank|access-date=2018-04-11}} A current account was launched in March 2025. https://www.zopa.com/current-account

The company's main office is at London Bridge.{{cite news|last1=Hurst|first1=Samantha|title=Zopa Relocates: Moves Into New London Bridge Digs|agency=Crowded Media Group|publisher=Crowdfund Insider|date=4 August 2016|language=en}} Since 2017, Zopa also has a development centre in Barcelona, Spain.{{Cite news|date=2017-06-07|title=Zopa Establishes Development Center in Barcelona|language=en-US|work=Crowdfund Insider|url=https://www.crowdfundinsider.com/2017/06/101572-zopa-establishes-development-center-barcelona/|access-date=2018-05-15}}

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.{{Cite news|last=Cave|first=Andrew|date=2016-03-05|title=Zopa aims for enough growth to stop explaining its name|language=en-GB|work=The Daily Telegraph|url=https://www.telegraph.co.uk/business/2016/03/05/zopa-aims-for-enough-growth-to-stop-explaining-its-name/|access-date=2018-04-11|issn=0307-1235}}

• Comparison of crowd funding services
• Neobanks in Europe
• Peer-to-peer lending

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• {{Official website}}

{{Peer-to-peer lending companies}}

Category:Peer-to-peer lending companies

Category:British companies established in 2005

Category:Banks based in the City of London