Half a decade after transitioning from peer-to-peer lending to banking, Zopa has officially launched its current account offerings in the UK market.
The mobile-centric Biscuit account allows customers to open an account in mere minutes through automated onboarding, granting them immediate access to virtual cards and the option to link external accounts.
Zopa asserts that Biscuit account holders can earn an average of £256 annually through cashback and interest. The account features a competitive 7.1% AER on monthly deposits of up to £300, alongside a 2% AER interest rate on all balances and 2% cashback on bill payments.
Zopa is optimistic that these enticing terms will attract customers; research commissioned by the bank indicates that a quarter of UK consumers actively seek out cashback opportunities. Furthermore, nearly 20% of those surveyed maintain multiple bank accounts and financial products to maximize value, avoid fees, or simply earn rewards for their loyalty.
Originally a pioneer in peer-to-peer lending, Zopa pivoted to become a bank in 2020. Since then, it has gained 1.5 million customers, facilitated over £13 billion in loans, and achieved profitability for two consecutive years.
Jaidev Janardana, CEO of Zopa Bank, commented, “Entering the realm of everyday banking aligns perfectly with Zopa’s goal to create the Home of Money for our customers. We believe that consumers in the UK deserve better than to constantly chase after deals while navigating complex banking experiences.”