Zopa granted full UK bank license as it gears up to launch savings account and credit card

Zopa granted full UK bank license as it gears up to launch savings account and credit card

Zopa, the 15-year-old peer-to-peer lending firm, is saying that it has been awarded its full U.Okay. financial institution licence, because it gears as much as launch a fixed-term financial savings account, adopted by a bank card.

Dubbed “Zopa Bank,” the brand new challenger financial institution will sit alongside its present peer-to-peer lending enterprise, below Zopa Group, creating what the veteran fintech beforehand described as the primary hybrid peer-to-peer and digital financial institution providing.

Zopa had provisionally acquired a U.Okay. financial institution license in December 2018 “with restrictions,” the primary main milestone within the licensing course of. The full license, which required Zopa to lift an extra £140 million late final 12 months in a spherical led by IAG Capital with a view to meet capital required to develop into a financial institution, means it will probably now launch extra broadly.

“The Zopa Fixed Term Savings Account affords a aggressive fee over 1-5 years at a time when charges are at a historic low,” says the upstart financial institution. “The account will be opened in as little as 7 minutes on-line and is protected by the Financial Services Compensation Scheme (FSCS) as much as £85,000.”

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Next, Zopa says it plans to introduce a bank card within the coming months, which can embrace “modern new options designed to place clients in command of their borrowing.”

“The card will tackle the wants of shoppers who’ve needed to put up with poor service and unclear pricing from their present card suppliers. These new merchandise will sit alongside Zopa’s present providing of private and auto loans and funding merchandise,” says Zopa Bank.

Whether or not a brand new challenger financial institution, even one with Zopa’s established model, can reduce by means of the noise this late within the race stays to be seen. The challenger financial institution area within the U.Okay. is crowded, to say the least, together with burgeoning family names like Monzo and Starling, and to a lesser extent, Tandem, which on the floor seems to be to be Zopa’s most direct non-legacy competitor.

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