Zopa Bank has been approved to offer retail investment services. Zopa notes that it is the first British bank to be approved under the new regulatory regime, which took effect on April 6th.
Merve Ferrero, Chief Strategy Officer at Zopa Bank, said that investing has been too complex and intimidating, and they are going to address this gap by enabling their customers to grow their wealth.
Zopa shared that its first offerings include two funds labeled “Balanced and Bold,” with average annual returns of 4.5% and 9.3%, respectively. These funds are managed by Invesco, a very large asset manager.
Banks or their affiliates must first obtain Financial Conduct Authority permission to offer investments as agents. Currently, some banks offer brokerage services, but Zopa is charting a path of simplicity.
Apparently, at some point in the future, Zopa will offer more securities, including ETFs.
Approximately 23% of UK adults, or around 12.5 million people, actively invest in the stock market. When looking at crypto, the percentage is even lower at 8% of the populace, or around 4.5 million people.
In the US, over 50% of adults invest in the stock market.
Zopa has chosen not to offer crypto, unlike digital bank Revolut.
Zopa’s addition of an investing service is emblematic of consumer demand for fewer financial platforms that offer more services, thereby simplifying the account management process.
Zopa began as a top peer-to-peer lender but has since evolved into a popular digital bank for retail consumers.
Zopa has reported double-digit growth and profits almost doubling to £65 million in the financial year ending 31 December 2025.
