Zopa’s Savings Account Tops £100 Million in Just Over 2 Months

Zopa’s “Smart Saver” savings account feature has topped £115 million in 65 days, according to a note from the Fintech. Currently, savers earn 1.455% interest (AER) on these accounts. Zopa’s goal is to create a £225 billion “zombie money” sitting idle in UK current accounts work harder.

The digital bank shares that almost 20,000 users have opened a savings account with more than half sitting in “boosted” silos. Zopa predicts that around £750 million will be in these accounts by the end of 2022.

Since launching as a digital bank in 2020, Zopa reports that has attracted £1.2 billion in deposits, more than £1.5 billion of loans on its balance sheet, issued about 250,000 credit cards becoming a top 5 credit card issuer in the UK, and tripled (3x) revenue per customer.

Earlier this month, Zopa reported profitability and the expectation that it should generate net income on an ongoing basis. At that time, Jaidev Janardana, CEO of Zopa , commented:

“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.”

Zopa is the original peer-to-peer lender that migrated to a digital banking model as a better path for sustainable growth. While still issuing loans (£6 billion plus), individuals no longer invest in these loans. Smart Saver was introduced in February 2022 and allows users the ability to silo funds into different accounts with varying degrees of liquidity. The highest rate (1.45% AER) requires a 95-day notice to access the funds. For an immediate access account, the account pays 1.2% AER.

 

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