Peer-to-peer (P2P) lender Zopa will not offer a current account when it becomes a bank.
In a blog post from CEO Jaidev Janardana, the platform revealed that it planned to offer Financial Services Compensation Scheme-protected deposit accounts for savers, P2P investments and finance – such as personal loans, car finance and credit cards – once it secures a banking licence.
“We have actively chosen not to launch a current account because we believe that open banking will significantly weaken a customer's relationship with their current account,” said Jaidev.
“We see a world where customers will care more about how their current account interacts with other financial products rather than who their provider is – much like how consumers are agnostic about whether their credit card is from MasterCard or Visa.”
Zopa initially announced plans to launch a bank in November 2016.
Earlier this year, the firm claimed to have become the first UK P2P platform to reach the £2bn lending milestone.
Zopa now believes it will lend around £250m to UK consumers in the first quarter of 2017.
Jaidev added: “Customer focus is embedded in the business, and our tribe structure embodies the agile approach that allows us to deliver technological innovation at speed.
“We're uniquely placed to make the next generation bank a leader in consumer finance combining our customer-centric culture, agile technology and data excellence with a track record of loan origination and risk management.
“No other provider has this combination of attributes.”
Temenos partners with ClearBank for cloud payments
Banking software company Temenos has formed a strategic relationship with ClearBank to provide banks with a faster route to market for real-time cloud payments...
Unity Trust Bank registers 34% rise in profits
Unity Trust Bank increased profits by 34% in 2019...
Believe the hype – why explainable AI is a trend that’s here to stay
Technology has become a ubiquitous part of our day-to-day lives...
Piloting tech updates: ‘The bigger the bank, the harder it is to get anything done’
In the latest Medianett filmed roundtable session, we discussed how important technology is in the banking space, and what impact the industry expects it to have on its businesses in the future...
What banks need to know about cloud security
One of the most common perceived concerns when adopting the cloud is the issue of security...
OakNorth sees 95% increase in pre-tax profits
OakNorth Bank has announced a 95% rise in pre-tax profits in 2019 to £65.9m, up from the £33.9m recorded in 2018...
Redwood Bank signs up to Women in Finance Charter
Redwood Bank has announced that it has signed up to the Women in Finance (WIF) Charter...
Masthaven launches digital Women in Leadership programme
Masthaven Bank has launched a new Women in Leadership digital development programme for female senior leaders...
Protecting against supply chain disruption and the domino effect
Disappointingly, many UK SME business owners don’t understand their supply chains...
Confused about which Isa to choose? Hopefully this mini-guide will help…
We are now firmly in Isa season, so you’re likely to read multiple articles about the most competitive Isa products in the market and how best to make the most of your Isa allowance before the end of the tax year...
Garden shed entrepreneurs contribute £16.6bn to the UK economy
Entrepreneurs who run their businesses from garden sheds contribute £16.6bn annually to the UK economy, according to a recent study...