Zopa unleashes UK challenger bank

Tuesday 4 December 2018 10:29 CET | News

Zopa now has its UK banking licence with restrictions and is ready for action.

The company closed its largest funding round to date with GBP 60 million for its banking plans. That followed on from August, when it got an extra GBP 44 million funding in its pockets. The P2P lender applied for a banking licence in 2016.

Zopa says it will begin rolling out its new products across in 2019, including a fixed term savings product protected by the Financial Services Compensation Scheme (FSCS), credit card and a money management app.

Currently, it has a bank licence with restrictions. Which it calls the “mobilisation” phase of the process where the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) put some restrictions in place.

Zopa says it will be granted a full licence once it meets the conditions set by the regulators in the mobilisation phase – “matching the way that high street banks are regulated”.

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Keywords: Zopa, challenger bank, UK, P2P
Countries: World