back Back

UK neobank Zopa raises £75m in funding to accelerate growth

By Gloria Methri

September 11, 2023

  • Digital Bank
  • fintech funding
  • Neobank
Share

Zopa, Zopa Bank, UK,FinTech, Neobank, Digital BankUK-based digital bank Zopa has secured £75 million in Tier 2 capital to support its growth and expansion plans. This funding brings the total capital raised by Zopa Bank to £530 million, with £150 million raised in 2023 alone. The additional capital will be used to fuel Zopa’s growth and to introduce new innovative financial products.

One of the standout features of Zopa Bank is its underwriting models, which utilise AI and machine learning algorithms. These algorithms have been optimized over the past 8 years, allowing Zopa to deliver stable credit performance, even during uncertain economic times.

CEO Jaidev Janardana views this financing round as a validation of Zopa Bank’s financial performance and a testament to investor confidence in the company’s growth potential. Janardana also credits the success to Zopa’s responsible and sustainable business model, strong unit economics, and vision to become the best bank in Britain.

Zopa Bank sets itself apart from other FinTechs and e-money institutions by being a licensed bank, adhering to the same standards as major high street banks. This means that customer deposits are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000. Zopa Bank also boasts a net promoter score (NPS) of 82, indicating high customer satisfaction.

Since its launch in 2020, the neobank has attracted £3.5 billion in deposits, issued over £2 billion in loans, and provided 470,000 credit cards. It currently serves one million customers and generates an annualized revenue run rate of £250 million. It has ambitious plans to serve five million customers by 2027.

Previous Article

September 11, 2023

Nigerian BaaS platform Anchor secures $2.4m to boost expansion

Read More
Next Article

September 11, 2023

Mastercard & KredX to offer flexible B2B payments to SMEs

Read More






IBSi Daily News Analysis

June 13, 2024

Digital Bank

Are payroll and financial statement fraud dual challenges facing UK SMEs?

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

June 13, 2024

4 Cybersecurity firms using AI to thwart financial crime in the UK

Read More

June 13, 2024

Trustly launches new AI-powered recurring payments solution

Read More

June 12, 2024

Commencis launches new Turkish LLM for banking & financial services

Read More

Related Reports

Sales League Table Report 2023
Know More
Global Digital Banking Vendor & Landscape Report Q1 2024
Global Digital Banking Vendor & Landscape Report Q1 2024
Know More
Wealth Management & Private Banking Systems Report Q1 2024
Wealth Management & Private Banking Systems Report Q1 2024
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q1 2024
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2023