Peer-to-peer lender Zopa has announced plans to launch an online-only bank challenging high-street lenders, to offer deposit accounts and overdrafts to customers. Zopa, Britain’s biggest peer-to-peer website, has applied for a banking licence to launch a "next generation bank", which will sit alongside its existing investments business. When launched, the platform says it will offer term-deposit accounts for savers and revolving lines of credit for borrowers, although a spokesman admitted the company does not yet know "exactly what they will look like". Jaidev Janardana, chief executive of Zopa, said: "We want to launch a next generation bank to drive greater choice for borrowers, savers and investors, which is good for consumers and good for the economy.” A spokesman said: "We want to serve a whole new group of customers. We serve investors well and we'd like to serve savers as well." By applying for a banking licence Zopa says its customers will receive protection through the Financial Services Compensation Scheme. However, it expects this will only apply to banking customers and not to its peer-to-peer customers.
Peer - to - peer lender Zopa will launch a digital - only bank to offer term - deposit savings accounts , overdrafts and revolving lines of credit to customers . Zopa is currently preparing the results of its banking licence application to launch its “ next - generation ” bank , which will operate alongside its current investments business . Once completion , which could take two years to achieve , the bank ’s customers will be protected under the Financial deposit Compensation Scheme . Zopa expects the bank to reduce losses during setup , but expects it will become profitable once fully launched .