Zopa becomes first P2P lender to pass £2bn milestone

London-based peer-to-peer (P2P) lending company Zopa has become the first in the UK market to surpass £2bn in loans.

The company says it has facilitated 300,000 loans since launching 12 years ago, matching 246,000 borrowers with more than 75,000 investors.

The milestone comes in the wake of Zopa’s announcement it will launch a bank to extend the range of consumer products it offers.

Often cited as the first company to connect borrows and lenders directly, thus inventing P2P loans, Zopa says the last 12 months alone saw customers borrow more than £703m through the platform.

It says more than £129m has been returned to investors in interest since it launched in 2005 and that Zopa has delivered positive returns to lenders every year, including through the 2008 financial crisis

Having raised more than $68m since launching in 2005 the company claims it is profitable.

Zopa CEo Jaidev Janardana said: “We’re excited to be the first UK peer-to-peer lender to pass the £2bn milestone.

“Over the last 12 years, we’re proud to say we’ve helped over a third of a million people get better interest rates for both borrowing and lending.

“The £2bn milestone demonstrates how far we have come, but our journey is only just getting started.

“Our decision to launch a next generation bank reflects our mission to create better options for consumers and to shape the future of finance.”

The company also disclosed the primary purposes of its loans with 34% being used to buy cars, 31% for debt consolidation and 20% going towards home improvements.

Copyright © 2017 FINTECH GLOBAL