Peer-to-peer lender Zopa to launch digital bank

The lender says its regulatory application process is "in early stages" and is expected to take 15-24 months.

Zopa's banking licence will lead to extended range of savings and borrowing products including FSCS protected deposit accounts to savers and overdraft alternatives to borrowers.

Jaidev Janardana, CEO of Zopa, said: “The regulatory authorities in the UK have created an environment that encourages innovation, the adoption of new technologies and an increase in competition in the banking sector.

"Zopa has a history of creating innovative retail-facing financial services, driving consumer choice and transparency. We are responding to the positive regulatory environment and building on our experience to bring yet more choice to the market.

“We launched in 2005 to create a richer life for everyone by making money simple and fair. We have lent over £1.8bn and inspired a £100bn global industry. We have built a profitable, scalable and viable business, yet we’ve only just begun.

"We want to launch a next generation bank to drive greater choice for borrowers, savers and investors, which is good for consumers and good for the economy.

“We are uniquely placed to re-define customer expectations of what a bank should deliver in the 21st century. Over the last 11 years we have delivered great value to borrowers and investors whilst prudently managing credit risk. Combining our pioneering data and tech-led culture with an obsession with fairness and customer experience, we are best placed to shape the future of personal finance in the UK.”