Challenger Zopa is planning a stock market flotation next year after celebrating its first year as a bank.听
The FinTech lender is听on course to reach profitability before the end of the year, having transitioned to a full bank 12 months ago and听generated 鈥榟igher than expected growth鈥� across听a number of听metrics, including revenue.听
The bank has become a top ten credit card issuer in the UK, attracting听in excess of听100,000 credit card customers in nine months. It has听also attracted more than 拢400m in customer deposits.听
Zopa,听which has听lent 拢6 billion in personal and auto loans in the UK market, says its focus on lending and its ability to attract deposits mean that it has a unique business model amongst challenger banks as it generates strong customer revenue. This approach has resulted in revenue per customer more than doubling since launching its bank.听
Zopa said it is on track for an IPO in late Q4 next year,听by which time it would have shown a 拢12m+ track record of consistent profitability.听
鈥淭he past year has been a highly successful one for Zopa Bank and we鈥檝e exceeded our targets across new and existing products,鈥� said CEO听Jaidev Janardana.听听
鈥淲e built a bank to better meet the needs of UK consumers and our year one success endorses that approach. We look forward to using the momentum that we have gained to expand our products and services further and to help more customers.听听
鈥淎t Zopa, we are also passionate about building a sustainable business and so I鈥檓 excited to see that our trajectory puts us on course to be amongst the fastest digital banks to achieve profitability.听听
鈥淲e will continue to build from that base with an IPO on the horizon as early as Q4 2022.鈥�听
Zopa has built听an in-house听credit health tool Borrowing Power and听also secured听recent partnerships with听ClearScore听and听CreditLadder.听听
Additional innovation in the last year includes features such as SafetyNet, which allows credit card customers to set aside part of their credit limit for a rainy day.听
听
听