|« P2P Heros conference||Wellesley & Co mini-bond cashback »|
Metro Bank lending through Zopa
Zopa has today announced that it has entered into an agreement with Metro Bank to allow funds to be lent through Zopa's peer-to-peer lending platform. This follows previous agreements between banks to refer borrowers, but this is one of the first where a bank is actually lending through a peer-to-peer platform.
On one level this could been seen as a bank effectively outsourcing some of its lending capability to a 3rd party, but it could also indicate that the returns or scale of lending the bank could achieve through Zopa were more than it could do itself.
This could be the start of a pattern within the industry and could cause some retail lenders to feel that the first "peer" in peer-to-peer lending is now being diluted by institutions.
Here is the full statement from Zopa:
Peer-to-peer lending pioneer Zopa has today announced a partnership with leading challenger bank, Metro Bank, to lend funds through Zopa’s online marketplace.
This innovative deal is the first of its kind in the UK and a clear signal that some parts of the UK banking sector are embracing Zopa and P2P lending as a new asset class. Metro Bank, the first high street bank in more than 100 years, has already begun lending funds to Zopa’s consumer borrowers.
Zopa and Metro Bank believe this partnership is a great example of how disruptive financial challengers can collaborate to provide additional value and revolutionise the UK banking sector. This move demonstrates how Metro Bank is leading the industry by embracing P2P lending as a new asset class.
By lending through Zopa’s proven platform which has over a decade of lending experience, Metro Bank will be helping UK consumers get a loan to finance a car, home improvement or consolidate existing debts such as expensive credit card debt, and in turn generate an attractive rate of return.
Giles Andrews, CEO and co-founder of Zopa, added: “This is another milestone for Zopa and the P2P industry as this partnership brings together two key challengers to the traditional financial services landscape and signals our intent to become a mainstream service. Partnering with Metro Bank is an exciting move for Zopa as I believe both companies share the same values in providing exceptional customer service but through different channels.”
“This unique partnership is the first of its kind in the retail banking sector and a clear sign that Zopa is a trusted platform not only for consumers but also for institutions to deploy their funds. We’re delighted that Metro Bank is lending through Zopa and we look forward to working even closer with Metro Bank on future opportunities and products.”
Craig Donaldson, Chief Executive Officer at Metro Bank commented: “At Metro Bank we’re committed to revolutionising UK banking and we’re delighted to have partnered with Zopa, a fellow financial challenger. We are continually looking to work with partners that can benefit our customers and Zopa are the perfect players in the P2P space to help us lend funds to consumers.”
“The partnership we have with Zopa is a cultural fit that works perfectly with our commitment to providing a convenient and customer-focused banking experience and we look forward to working with them closely.”