June 23, 2020 / 11:02 PM / 10 days ago

British lender Zopa awarded full banking licence

LONDON (Reuters) - Britain’s oldest peer-to-peer lending platform Zopa has been awarded a full banking licence by regulators, becoming the latest online player to expand into traditional banking services in a bid to boost profitability.

The London-based business launched in 2005 and approves around 1 billion pounds of personal loans a year through its peer-to-peer platform, which brings together individual borrowers and lenders without a bank being involved.

The company has been working towards obtaining a full banking licence for at least three years and was boosted in December by securing a 140 million pound funding round.

A full licence enables a lender to take customer deposits that are guaranteed up to 85,000 pounds under a state-backed protection scheme and to provide a wider range of lending services.

Zopa said it planned to launch a fixed-term savings account before later introducing a credit card.

“Securing our banking licence enables Zopa to play a wider role in the financial lives of our customers, as well as offering much needed choice and competition to the wider market,” Zopa CEO Jaidev Janardana said in a statement.

Reporting by Iain Withers; Editing by Susan Fenton

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