Tag: Zopa

Zopa Bank Launches Instant Current Account Beyond Existing Customer Base Zopa Bank has introduced a new current account that can be opened within minutes, now accessible to more customers beyond its existing base of 1.5 million savings and loans clients. The current account had already been tested by 60,000 Zopa customers during its beta phase, with the full launch happening sooner than expected. Zopa Bank CEO Jaidev Janardana had initially projected the current account to be launched in the final quarter of the year. This move comes two decades after Zopa revolutionized fintech with its peer-to-peer lending model, which was discontinued in 2021, and five years after transitioning into a full-fledged bank. Following the official release of the current account, Janardana expressed, "Stepping into everyday banking is a natural progression in Zopa's quest to create the Home of Money for its clientele." The decision to become a bank was announced by Zopa in 2016, citing a decline in trust within the fintech sector and escalating expenses as driving factors. By December 2018, Zopa had secured a UK banking license with certain limitations. After obtaining a full license, the bank launched in 2020 with its debut product, a savings account that could be set up in just seven minutes. In addition to personal loans, car financing, credit cards, and buy now, pay later options, Zopa Bank also offers various savings accounts. Currently boasting 1.4 million customers and revenue exceeding £300 million, with a growth of approximately 30% last year, the bank's profit nearly doubled to just under £35 million during the same period, with deposits totaling over £5 billion. The newly introduced account, named Biscuit, boasts instant setup and virtual card availability. During a recent interview, Janardana highlighted the potential for the company's existing products to replicate last year's growth trajectory. "We aim to expand our offerings to include more day-to-day banking services for our customers," he stated. Zopa's beta current account has been accessible to existing clients since September 2024. Technological Innovation Drives Zopa Bank Zopa Bank, with approximately 850 employees primarily located in London, includes a third of its workforce dedicated to technology, comprising engineers and data scientists. The bank's proficiency in technology and agility have facilitated the rapid development of the current account offering. The launch of the current account coincides with the emergence of challenger financial institutions challenging the dominance of traditional banks in the market. Current accounts serve as a gateway to establishing a deeper relationship with customers, who have historically viewed challenger banks as secondary financial providers. Janardana emphasized to Computer Weekly that this is just the beginning for challenger banks. "While these firms are profitable and expanding, we are still in the early stages in terms of market share, with traditional banks holding the majority," he remarked. He added, "There is momentum and potential for growth, with successful companies maintaining double-digit growth rates for the foreseeable future."

Tag: Zopa

Zopa Bank launches current account earlier than expected

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