Zopa Closes in on £130m Capital Injection for Bank Push

Zopa Closes in on £130m Capital Injection for Bank Push
03.12.2019 05:01 am

Zopa Closes in on £130m Capital Injection for Bank Push

Retail Banking

UK peer-to-peer lending outfit Zopa is set to secure £130 million in funding, enabling it to meet regulatory capital requirements for its foray into banking.

As first reported by Sky News, an entity linked to IAG Capital Partners, a US-based fund, and its UK investment vehicle Silverstripe is on the verge of taking a majority stake in Zopa.

The expected funding comes just days before Zopa's banking license-with-restrictions expires a year after being granted, helping it meet capital requirements.

A P2P lending pioneer, Zopa decided three years ago to branch out into more traditional banking, joining the gaggle of digital challengers - including Starling, Monzo and Atom - to recently enter the UK market.

It received a restricted UK banking license in December last year after picking up £60 million in funding for the build-out, paving the way for the peer-to-peer lending pioneer to launch a brand-new suite of financial products built on proprietary technology.

In November it began a limited one-month beta test of its first fixed-term savings account with 200 prospective customers.

According to Sky News, the new funding is at a "steep discount" on the 2018 round, reflecting the importance of securing the banking license.

Related News

Masthaven launches fees-free remortgage range

Masthaven Bank has today launched a new fees-free remortgage range on its first charge residential two-year and five-year fixed remortgage products. The specialist bank has... Read more »

TSB unveils support for SME suppliers and customers during Coronavirus outbreak and beyond

TSB announced it will ensure that all of its smallest suppliers will be paid within just 10 days of invoicing the bank. The move will apply to all companies that supply goods... Read more »

Metro Bank and ezbob partner to deliver next-generation small business loans platform

Metro Bank has today announced a new partnership with award-winning Lending-as-a-Service (LaaS) provider ezbob to offer Metro Bank’s business customers fast, secure and... Read more »

Starling Bank Creates 400 Jobs in Cardiff with Opening of Third UK Office

Starling Bank has opened its third UK office, creating 400 data science, fraud and customer service jobs in Cardiff.

The app-only bank has made a strong start to 2020 as... Read more »

Finastra powers retail banking innovation with four new fintech apps on FusionStore

Finastra today announced the launch of four new retail banking apps on ... Read more »

ClickSWITCH to Deliver Account Switching Technology to Finastra Clients

ClickSWITCH today announced that it would deliver ClickSWITCH’s technology to clients of Finastra’s core banking solutions, Fusion Phoenix and Fusion UltraData. The two... Read more »

Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel