Half a decade after pivoting from P2P lending to become a bank, Zopa has entered the UK current account market.
The mobile-first flagship Biscuit account can be opened within minutes, with automated onboarding, with customers getting instant access to virtual cards and the ability to link external accounts.
Zopa claims Biscuit will earn customers an average £256 in cash back and interest a year, with 7.1% AER on up to £300 deposits a month, 2% AER interest on all balances, and 2% cashback on bills.
Zopa is banking on the generous terms winning over customers, with research commissioned by the bank showing that a quarter of Brits strategically chase cashback offers, while nearly one in five have multiple bank accounts and financial products in a bid to find value, dodge fees, or simply get something back for their loyalty.
A P2P lending pioneer, Zopa pivoted to become a bank in 2020 and has since amassed 1.5 million customers, lending more than £13 billion and securing two straight years of profitability.
Jaidev Janardana, CEO, Zopa Bank, says: “Stepping into everyday banking is a natural next step in Zopa’s mission to build the Home of Money for its customers. We believe that British consumers deserve better than having to constantly chase deals and accept complexity or poor experience."