Digital bank Zopa hits profitability
Zopa bank has hit profitability, just 21 months after acquiring its banking licence. This is making Zopa one of the fastest digital banks to achieve profitability ever. They expect to remain profitable from this point onwards and to continue our accelerated growth.
The news was announced at the Innovate Finance Global Summit by Zopa’s CEO Jaidev Janardana.
More context and some figures:
- The past year has been a highly successful one for Zopa bank as we’ve exceeded our targets across new and existing products and raised $300 million led by Softbank to fuel our accelerated growth
- Since launching our bank in 2020 we have attracted £1 billion in deposits, more than £1 billion of loans on balance sheet, issued circa 250,000+ credit cards
becoming a top 5 credit card issuer in the UK, and tripled (3x) our revenue per customer - Our Fixed Term Savings account alone amassed £1 billion in customer savings in 18 months topping the tables 15 times, offering great value and an intuitive digital experience
- In February we launched Smart Saver, a “hybrid” savings account (easy access / notice) to help young users at the beginning of the saving journeys better save in a post-pandemic world. The Smart Saver has attracted 10k customers and £8m in less than a month and is currently the highest paying savings account in its category (top-table)
- Looking ahead, we anticipate closing 2022 with a balance sheet of £2bn and more than doubling our run rate revenues Vs 2021
- We also expect to launch a fully regulated Zopa BNPL product in the fall, targeting larger basket sizes
Jaidev Janardana, CEO at Zopa bank said:
“The past year has been a highly successful one for Zopa as we’ve exceeded our targets across new and existing products and raised $300 million led by Softbank to fuel our accelerated growth.
“Hitting profitability in just 21 months is a testament to our unique model that meets customer needs by focusing on how they borrow and save - the two things with the most impact on finances.
“Today’s news makes Zopa one of the fastest digital banks to achieve profitability ever and reinforces our thesis on the importance of sustainable growth as a catalyst for accelerated product and market expansion.”
ENDS - -
About Zopa bank
- Launched 20 months ago, Zopa Bank is the tech unicorn that raised $500 million from the early investors of Slack, Uber, and Alibaba to build the UK’s best bank for borrowing and saving.
- Its unique P2P heritage rooted in fintech brings 16 years of lending experience to its operations as well as over £6 billion funds in personal loans approved.
- Zopa users rate its service as excellent with 4.7 out of 5 on TrustPilot. It has been voted the UK’s Best Personal Loan Provider 5 years in a row from the British Bank Awards.
- Zopa Bank Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority
