UK’s Zopa Bank hits profitability less than two years since launch
UK challenger Zopa Bank has turned a profit for the first time since acquiring its full UK banking licence less than two years ago.
Zopa Bank makes a profit
The firm claims it is “one of the fastest digital banks to achieve profitability ever”.
Zopa was initially founded as a peer-to-peer lending company in 2005 before landing its bank licence and launching its banking services in June 2020.
Since then, Zopa Bank claims to have attracted £1 billion in deposits and issued over 250,000 credit cards in the UK. It also boasts over £1 billion worth of loans on its balance sheet.
Zopa decided to close its P2P investments division and focus its energies and resources on its banking offering in December.
The firm raised $300 million in a funding round led by Softbank in October last year, and says it expects to remain profitable. It anticipates doubling its revenues with an expected balance sheet of £2 billion at the close of 2022.
Zopa Bank has also been busy with new product offerings. In February, it launched a “Smart Saver” hybrid savings account aimed at young users, which the challenger claims has attracted 10,000 customers and £8 million in deposits in under a month.
It also plans to launch its own buy now, pay later (BNPL) product for big-ticket items later in the year.
