Fintech company Zopa has been granted a full banking license.
Zopa Bank said it will focus on better meeting the financial needs of UK customers in sectors where they have “traditionally been poorly served.”
The new bank will be launching a new set of products, starting with a fixed term savings account and will also be introducing a credit card later this year.
The news comes as independent research commissioned by Zopa found that a fifth of UK adults (20%) said they had faced struggles contacting their bank during the coronavirus pandemic and a third (30%) said they wanted additional flexibility and better guidance from their main bank to help them during these “uncertain times”.
Jaidev Janardana, Zopa CEO, said: “Now more than ever the banking industry needs innovative, agile providers who work on behalf of customers. At a time when people want great value, fair financial services products and simple, intuitive digital experience, Zopa offers consumers a compelling and credible alternative they can trust.
“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.”
Janardana added: “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.”
Zopa Bank will sit alongside its existing peer to peer business (Zopa Limited), as part of the overall Zopa Group.