UK peer-to-peer lending platform Zopa has now facilitated more than £1 billion in loans, involving more than 200,000 people.
Founded in 2005, Zopa says that a decade on it is experiencing huge growth, with lending of £52 million in July, a 122% increase on the same month in 2014. The site now has a two per cent share of the UK unsecured personal loans market and expects to lend in excess of £550 million this year, more than doubling 2014’s total of £265 million.
In total, 146,000 borrowers and 61,000 lenders have met through the platform, with £57 million in interest returned at an average lending rate of five per cent. The most popular purpose for getting a loan through Zopa is buying a car, at 40%, followed by home improvements and debt consolidation, both on 22%.
Giles Andrews, CEO, Zopa, says: "We’re delighted to have lent over £1 billion and will continue to deliver the best service across consumer finance as we aim to lend our next £1 billion in 2016. I’m proud that over the past 10 years Zopa has established itself as a trusted and mainstream service for UK consumers."
Zopa claims that its growing popularity is in part due to unhappiness with high street lenders, citing a survey which shows that 53% of UK adults say they have lost trust in banks but still use them due to lack of alternatives available.
However, as it grows the P2P lending industry is becoming increasingly close with traditional financial services firms. Earlier this year Zopa itself teamed up with Metro Bank, which is now lending funds to consumers via the online marketplace.