Zopa has announced plans to launch “Next Generation” Bank Banking licence will lead to extended range of savings and borrowing products, their intention to launch a bank to enhance their market-leading peer-to-peer business. The application for a banking licence will be made to the Prudential Regulation Authority (PRA), and the Financial Conduct Authority (FCA).

Jaidev Janardana, CEO of Zopa said “The regulatory authorities in the UK have created an environment that encourages innovation, the adoption of new technologies and an increase incompetition in the banking sector. Zopa has a history of creating innovative retail-facing financial services, driving consumer choice and transparency. We are responding to the positive regulatory environment and building on our experience to bring yet more choice to the market. At launch, Zopa’s next generation bank will extend the company’s existing suite of investor and borrower products by offering FSCS protected deposit accounts to savers and overdraft alternatives to borrowers.

“We launched in 2005 to create a richer life for everyone by making money simple and fair. We have lent over £1.8bn and inspired a £100bn global industry. We have built a profitable, scalable and viable business. Yet we’ve only just begun. We want to launch a next generation bank to drive greater choice for borrowers, savers and investors, which is good for consumers and good for the economy”. He added “We are uniquely placed to re-define customer expectations of what a bank should deliver in the 21st century.’