Zopa, a UK-based digital bank, has obtained regulatory permission to provide targeted support to its investment customers, a designation that sits between generic financial guidance and full regulated advice. The approval makes Zopa one of the first among the UK's 350-plus banks and building societies to hold this permission for investment products.
A new regulatory category for retail investors
Targeted support is a regulatory classification designed to give consumers more personalised assistance than generic guidance without crossing into full financial advice. Under this framework, Zopa will use customer data and behavioural insights to deliver tailored nudges and suggestions based on the financial behaviours of customers with comparable profiles using similar products. The approach is structured around financial education as a starting point, with the stated aim of helping retail investors who hold excess cash to act with greater confidence.
Zopa currently offers two ready-made investment funds (Balanced and Bold) which have recorded average annual returns of 4.5% and 9.3% respectively. The funds are managed by Invesco, an asset management firm with over USD 2 trillion in assets under management, and are integrated with Zopa's platform via Upvest's API infrastructure. Customers can begin investing with as little as GBP 1.
The development is positioned as a response to a broad retail gap: an estimated 15 million people in the UK hold surplus cash without channelling it into investment products. Regulatory frameworks such as targeted support permissions are intended to lower the barrier to engagement, particularly for first-time investors.
Technology and financial performance
The announcement comes as Zopa reports continued growth across its business. In the financial year ending 31 December 2025, the bank's profits nearly doubled to GBP 65 million, with double-digit growth recorded across the period. Zopa attributed part of this momentum to investment in technology, including the expansion of its AI-driven customer service capabilities. AI now handles around 45,000 customer service interactions each month, with 70–75% of all servicing requests fully automated. Customer satisfaction scores for AI-handled chats are reported to be 10% higher than prior benchmarks.
The investment proposition builds on Zopa's existing product range, which includes savings, lending, and a current account (the Biscuit account) rated by MoneySavingExpert for cashback, perks, and regular savings.
