Zopa Bank will offer fixed term savings accounts and credit cards which are expected to be available later this year. The savings accounts will be offered over one to five years and according to the bank will take seven minutes to open online.
The firm was granted a banking licence with restrictions in December 2018 but faced losing it a year later unless sufficient capital was raised to meet its regulatory requirements. Zopa secured a last minute cash injection of £140m from IAG Silverstripe, an investment arm of US-based IAG Capital Partners.
Under its peer to peer investment and loan arm, Zopa already has 300,000 customers. It offers personal loans of up to £25,000 and the chance to invest in lending, through a peer to peer platform.
The new bank has no plans to offer mortgages.
Jaidev Janardana (pictured), Zopa’s chief executive, said: “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.
“Beyond the current pandemic, Zopa is uniquely placed to provide a compelling alternative to traditional banking by leveraging its significant technological and financial services expertise to offer a wider range of great products, including savings and credit cards, alongside its personal loans and investments.”