29 September 2016
Visit dh.com

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

09 March 2011  |  9687 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)

Finextra news in your inbox

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

Related stories

Lending site for small businesses launches

Lending site for small businesses launches

23 August 2010  |  5418 views  |  0 comments
New players beat traditional banks in public trust stakes

New players beat traditional banks in public trust stakes

18 June 2010  |  10356 views  |  0 comments
Social lending site Yes-Secure preps for UK launch

Social lending site Yes-Secure preps for UK launch

21 May 2010  |  8793 views  |  0 comments
Prosper closes in on series d funding

Prosper closes in on series d funding

01 April 2010  |  6751 views  |  0 comments
P2P lender CommunityLend launches in Ontario

P2P lender CommunityLend launches in Ontario

12 January 2010  |  6289 views  |  1 comments
P2P micro-lending site Kiva opens up to US borrowers

P2P micro-lending site Kiva opens up to US borrowers

10 June 2009  |  5052 views  |  0 comments
Lending Club raises $12m funding

Lending Club raises $12m funding

19 March 2009  |  5741 views  |  0 comments
Zopa quits US

Zopa quits US

10 October 2008  |  9554 views  |  0 comments
P2P lender Zopa reports soaring uptake as credit crunch bites

P2P lender Zopa reports soaring uptake as credit crunch bites

09 October 2008  |  12628 views  |  0 comments
Zopa passes 200,000 members

Zopa passes 200,000 members

08 July 2008  |  5704 views  |  0 comments
Zopa targets Japanese market

Zopa targets Japanese market

07 March 2008  |  5413 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Find out moreVisit capgemini.comVisit dh.com

Who is commenting?

Top topics

Most viewed Most shared
RBS tests demonstrate ability of Ethereum to support a national domestic payments systemRBS tests demonstrate ability of Ethereum...
14511 views comments | 55 tweets | 48 linkedin
Ripple rudely gatecrashes Sibos partyRipple rudely gatecrashes Sibos party
9772 views comments | 31 tweets | 29 linkedin
Swift beware: Ripple signs banks to global payments steering groupSwift beware: Ripple signs banks to global...
9151 views comments | 33 tweets | 18 linkedin
BNP Paribas is working with clients on blockchain deploymentBNP Paribas is working with clients on blo...
7481 views comments | 14 tweets | 30 linkedin
US gets same day ACHUS gets same day ACH
7024 views comments | 23 tweets | 20 linkedin

Featured job

Find your next job