Metro Bank inks deal to lend via Zopas P2P platform

Metro, which launched in 2010, will lend customer deposits via Zopa, UK peer-to-peer lending company.

Peer-to-peer platforms are digital sites that match lenders to borrowers directly, in a more enhanced way than traditional banking. However, some within the industry have claimed that institutions are muscling in on the market and capturing the best loans — forcing out individual investors. Zopa already has links with a number of institutions, including hedge fund Arrowgrass Capital Partners and P2P Global Investments.

Zopa provides about GBP 45 million of consumer loans a month but could boost that by bringing in institutions. For Metro, the partnership broadens its customer base as the group seeks to enable lending growth. The bank has about GBP 3 billion in deposits but only lends about half that amount.

In recent news, Zopa has entered an agreement with Uber, a mobile-based transportation network.