Our portfolio company, U.K. online lender Zopa seeks a banking license as a first mover the peer-to-peer lending sector. The move would help it diversify its sources of funding and enhance profitability even further. Once regulated, it will be able to take deposits.
Jaidev Janardana, chief executive, and Giles Andrews, co-founder, at Zopa, which is the latest of the new breed of banks challenging traditional high-street lenders Peer-to-peer lender Zopa has announced plans to launch an online-only bank challenging high-street lenders, to offer deposit accounts and overdrafts to customers. Zopa, Britain’s biggest peer-to-peer website, has applied for a banking licence to launch a "next generation bank", which will sit alongside its existing investments business. When launched, the platform says it will offer term-deposit accounts for savers and revolving lines of credit for borrowers, although a spokesman admitted the company does not yet know "exactly what they will look like".