Zopa Bank has surpassed £4 billion in customer deposits just under four years since getting its banking license.

The ISA market has been particularly enticing to consumers looking for a tax efficient way to save. Bank of England statistics show that UK savers have been consistently moving ~£3 billion per month into ISAs for several months now, buoyed by higher interest rates.

Zopa’s Smart ISA alone accrued £1 billion in less than a year (11 months), capturing a significant share of the market.

Savers chose Zopa for its intuitive app-based interface, its hybrid approach to saving (holding fix and easy access pots in the same ISA), and its flexibility (moving money in and out without eroding the allowance).

The news comes after Zopa announced its first full year of profitability:

• Zopa Bank swung to a pre-tax profit of £15.8 million for the financial year ending 31 December 2023 from a pre-tax loss of £26 million for the year ending 31 December 2022.
• Launched in June 2020, the milestone makes Zopa one of the fastest digital banks in the UK to turn an annual profit.
• Zopa now offers a large set of products that serve unmet customer needs: unsecured personal loans, credit cards, point-of-sale, car finance, savings accounts, and financial health tools.
• As a result, the bank now has 1.2m customers generating an ARR of £250 million. 
• Zopa achieved 30% customer growth while becoming even more efficient: its cost-to-income ratio decreased from 45.8 to 38.7%.