Zopa is a UK based peer-to-peer lending company founded in 2004 which has a banking licence. It launched in the UK in March 2005. Zopa was the first peer-to-peer lending company.
|Founders||Giles Andrews |
Zopa grew steadily 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.
In January 2017, Zopa became the first UK based peer-to-peer lending company to lend more than £2 billion worth of loans. Zopa became fully regulated by the Financial Conduct Authority in May 2017. Following FCA authorisation, and HMRC approval as an Individual Savings Account (ISA) manager, Zopa started offering its Innovative Finance ISA products in June 2017.
Products and services
- Peer-to-peer lending
Investors can choose from four investment products based on their risk and return appetite. Investors’ money is split across multiple borrowers. Investors then receive monthly repayments of interest and capital, which they can relend to compound the interest.
Zopa's bank is scheduled to launch in 2019 and will sit alongside its peer-to-peer lending business. Zopa plans to offer FSCS protected deposit accounts, credit cards, and a money management app which makes use of data made available by the introduction of Open Banking. In August 2018, Zopa obtained £44 million in funding for the launch of its new digital challenger bank.
In November 2019, it was reported that the company was at risk of losing these permissions and being forced to abandon its banking licence application, due to a lack of capital in the region of £100-150 million.
Its name stands for "Zone of possible agreement", a negotiating term identifying the bounds within which agreement can be reached between two parties.
- Comparison of crowd funding services
- Peer-to-peer lending
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