Allen & Overy advises Zopa on new bank launch
25 June 2020
UK-based lender Zopa has announced it has been awarded a full UK bank licence. The new bank will launch by offering a fixed term saving account followed by an innovative credit card later in the year. These new products will launch in addition to Zopa’s existing personal loan and auto loan products and the bank will sit alongside Zopa’s peer-to-peer business formed in 2005.
Zopa’s Bank will focus on better meeting the financial needs of UK customers in sectors where they have traditionally been poorly served, while also delivering an experience that matches their expectations of a digital-first company.
As part of the project Zopa has raised GBP140 million, its largest funding round to date, enabling its banking entity to fulfil its regulatory capital requirement. The investment has been provided by IAG Silverstripe Partners – an investment arm of IAG Capital, the private investment group specialising in digital technology-led businesses. IAG Silverstripe first invested in Zopa in October 2018.
A&O partner Will Samengo-Turner comments: “This is an exciting and important moment in Zopa’s history and a significant one for UK consumers who will be able to access an innovative, digital-led banking service at a time when they most need it. We are immensely proud to have worked with the Zopa team to achieve their licence and I look forward to watching Zopa Bank go from strength to strength.”
The A&O team advising Zopa was led by partner Will Samengo-Turner with senior associate Eimear Coady and associate Sam Brooks. Regulatory advice was provided by partner Bob Penn and senior associate Jack Prettejohn.