Zopa planning to launch bank to enhance P2P businees
Nov 16, 2016 12:45:40 GMT
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Post by zopaamy on Nov 16, 2016 12:45:40 GMT
Press Release released today
Fintech Pioneer Zopa announces plan to launch “Next Generation” Bank
Banking licence will lead to extended range of savings and borrowing products
• Next Generation bank to sit alongside existing P2P business
• At launch, Zopa intends to offer FSCS protected deposit accounts and revolving credit products to supplement existing award winning loans and peer-to-peer investor products
• Regulatory application process in early stages, application expected to take 15-24 months
• Zopa is uniquely placed to leverage banking licence and build upon stable 11-year track record in delivering simple loans and smart investments with higher customer satisfaction than high street banks
LONDON, 16 November 2016: Zopa, the world’s first peer-to-peer lender, announces 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 in competition 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.
Jaidev Janardana, CEO of Zopa said: “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. Over the last 11 years we have delivered great value to borrowers and investors whilst prudently managing credit risk. Combining our pioneering data and tech-led culture with an obsession with fairness and customer experience, we are best placed to shape the future of personal finance in the UK.”
Adding a next generation bank to their pioneering peer-to-peer lending platform will provide further diversified sources of funding for Zopa, which already successfully attracts individual and institutional investors to lend on their platform. The diversity of funding will offer a strategic advantage over pureplay banking.
This announcement follows on from a record lending month in October 2016 and Zopa achieving profitability since September 2016.
ENDS
Fintech Pioneer Zopa announces plan to launch “Next Generation” Bank
Banking licence will lead to extended range of savings and borrowing products
• Next Generation bank to sit alongside existing P2P business
• At launch, Zopa intends to offer FSCS protected deposit accounts and revolving credit products to supplement existing award winning loans and peer-to-peer investor products
• Regulatory application process in early stages, application expected to take 15-24 months
• Zopa is uniquely placed to leverage banking licence and build upon stable 11-year track record in delivering simple loans and smart investments with higher customer satisfaction than high street banks
LONDON, 16 November 2016: Zopa, the world’s first peer-to-peer lender, announces 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 in competition 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.
Jaidev Janardana, CEO of Zopa said: “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. Over the last 11 years we have delivered great value to borrowers and investors whilst prudently managing credit risk. Combining our pioneering data and tech-led culture with an obsession with fairness and customer experience, we are best placed to shape the future of personal finance in the UK.”
Adding a next generation bank to their pioneering peer-to-peer lending platform will provide further diversified sources of funding for Zopa, which already successfully attracts individual and institutional investors to lend on their platform. The diversity of funding will offer a strategic advantage over pureplay banking.
This announcement follows on from a record lending month in October 2016 and Zopa achieving profitability since September 2016.
ENDS