Zopa has announced that it has been approved for a bank licence with restrictions. This is called the ‘mobilisation’ phase of the process where the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) put some restrictions in place. Zopa will be granted a full licence once it meets the conditions set by the regulators in the mobilisation phase– matching the way that high street banks are regulated.
Zopa says as a new bank will sit alongside its existing business, creating the world’s first hybrid peer-to-peer and digital bank offering customers a unique choice of products
Zopa will begin rolling out its new products across next year, including a fixed term savings product protected by the Financial Services Compensation Scheme (FSCS), credit card and a money management app. All products have been designed to address some of the gaps and frustrations that customers have with their current products.
Jaidev Janardana, CEO of Zopa, said “Acquiring our banking licence is the starting point for Zopa to become a major force in retail banking. When we pioneered the peer-to-peer lending model globally in 2005, we did so by listening to customers and creating a better product for them. We will bring the same focus to our banking products – drawing on tech innovation, our values of fairness and transparency, and better customer service to help even more people to feel-good about money.”