Is Zopa a legitimate bank?
Yes — Zopa is a fully licensed UK bank regulated by the FCA and PRA, with FSCS deposit protection up to £85,000. Zopa received its banking licence in 2020, transitioning from a peer-to-peer lending platform (founded in 2005) to a full retail bank. It offers credit cards, personal loans, car finance, and savings accounts, using open banking for affordability assessments and account management.
What happened to Zopa’s peer-to-peer lending business?
Zopa was the world’s first peer-to-peer lending platform when it launched in 2005. In 2020, it obtained its banking licence and began winding down its P2P lending book, which it closed completely in December 2021. The P2P wind-down was planned and orderly — lenders received their capital and interest as loans matured. Zopa now operates exclusively as a retail bank, not a P2P platform.
How does Zopa use open banking in its lending and savings products?
Zopa uses open banking for affordability assessments when customers apply for personal loans or credit cards, giving it a real-time view of income and expenditure alongside a traditional credit check. Its savings products are accessible through the Zopa app, and the bank supports open banking API access for FCA-regulated third parties. This means Zopa account data can be connected to budgeting apps and accounting software with your consent.
Open Banking in Practice: Zopa Bank Limited is UK-incorporated and registered with Companies House. It is not a US, EU, or offshore entity. The name Zopa comes from Zone Of Possible Agreement — a term from negotiation theory. Zopa’s banking licence is held separately from its legacy P2P entity, which is in run-off. Read our profile of Zopa and digital lending banks on openfuture.world.
FAQ
Is Zopa for bad credit?
Zopa offers products across the credit spectrum, but its best rates are reserved for those with good credit histories; it is not specifically a bad-credit lender.
How do I check the status of my Zopa loan?
Log into the Zopa app or website at zopa.com to view your loan balance, repayment schedule, and transaction history.
Why is Zopa on my credit report?
Zopa will appear on your credit report if you have applied for credit with them (hard search) or hold an active credit product — this is normal for any FCA-regulated lender.