UK-based challenger Starling Bank has announced it is funding consumer loans via Zopa's P2P lending platform.
Starling is now funding consumer loans originated by peer-to-peer lending pioneer Zopa, itself in the last throws of launching its own deposit-taking bank. Starling Bank then buys the loans and transfers them to its own balance sheet with Zopa continuing to service the loans. The dealis not the first between a challenger bank and marketplace lender. Zopa itself instigated a similar deal with Metro Bank five years ago.
Starling Bank reprezentatives have states for AltFi that the bank currently holds over GBP 1.25 billion on deposing and that the sum is growing at double digit rates every month. While the company is building its own lending capability, it’s deploying some of its deposits in forward flow arrangements with selected lenders, including Zopa.
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