20 September 2014

Zopa sees surge in demand as banks fail to meet consumer interests

09 March 2011  |  8646 views  |  0 Team meeting

UK peer-to-peer lender Zopa is reporting a surge in consumer interest as traditional banks continue to tighten credit lines and milk the spreads on interest-bearing loans.

Zopa, which is celebrating its sixth birthday this week, has passed the £125 million mark in total lending, an increase of 80% on the £70m total loan figure hit last year.

The firm says lending is now growing at more than £5 million each month, giving Zopa over two per cent of the unsecured personal loan market in the UK month on month.

The company says consumers are increasingly turning to Zopa as an alternative to traditional bank lending, lured by the prospect of cheaper deals for borrowers and better returns for lenders.

Giles Andrews, cofounder and CEO of Zopa says: "With banks continuing to inflict enormous spreads across their saving and borrowing rates, resisting pressure to better serve the country and being accused by the Bank of England Governor of routinely ripping off their customers - and all despite some of the biggest being bailed out by the taxpayer - it is perhaps not surprising that as more people hear about the person-to-person alternative, they are flocking to Zopa."

He says the average return enjoyed by Zopa lenders over the last 12 months has been 7.6% p.a. (after charges but before any bad debt). Furthermore, says Giles, the default rate on Zopa loans remains at the lowest of any unsecured loan book in the UK at just 0.7%.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

23 August, 2010
18 June, 2010
25 May, 2010
21 May, 2010
01 April, 2010
12 January, 2010
10 June, 2009
19 March, 2009
10 October, 2008
09 October, 2008
08 July, 2008
07 March, 2008

Related company news

 

Featured job

to £80k base, £160k OTE, benefits
London, UK

Find your next job