Latest news with #JaidevJanardana
The Star
25-06-2025
- Business
- The Star
Digital lender Zopa introduces UK bank account
Zopa's Biscuit current accounts will offer cashback on spending and interest rates of more than 7% on regular savings. — Bloomberg LONDON: Digital lender Zopa Bank Ltd is launching a UK bank account as it tries to compete with the likes of Chase UK, Revolut and Monzo on everyday banking. Zopa's Biscuit current accounts will offer cashback on spending and interest rates of more than 7% on regular savings, according to a statement yestersday. 'We would love to be serving more than five million customers in the next three to four years, growing to more than 10 million customers over a five to seven year period,' chief executive officer Jaidev Janardana said in an interview. He said the bank was targeting deposits of around £1,500 to £2,000 per account. Zopa, which started as a peer-to-peer lender, gained its UK banking licence in 2020 and now has almost 1.5 million customers across savings and loans. It's spent the past year building a team of 90 to test the new current accounts with around 80,000 customers. The firm is hiring more specialists to tackle financial crime, and is also moving closer to its banking peers later this year with new headquarters in Canary Wharf. The business counts SoftBank among its investors and retained a US$1bil valuation last year after raising €82mil. Most Britons use one of the big five banks for their everyday bank account, though startups are encroaching after building a sizable customer base in other services such as money transfers and foreign exchange. — Bloomberg
Finextra
24-06-2025
- Business
- Finextra
Zopa launches current account
Half a decade after pivoting from P2P lending to become a bank, Zopa has entered the UK current account market. 0 The mobile-first flagship Biscuit account can be opened within minutes, with automated onboarding, with customers getting instant access to virtual cards and the ability to link external accounts. Zopa claims Biscuit will earn customers an average £256 in cash back and interest a year, with 7.1% AER on up to £300 deposits a month, 2% AER interest on all balances, and 2% cashback on bills. Zopa is banking on the generous terms winning over customers, with research commissioned by the bank showing that a quarter of Brits strategically chase cashback offers, while nearly one in five have multiple bank accounts and financial products in a bid to find value, dodge fees, or simply get something back for their loyalty. A P2P lending pioneer, Zopa pivoted to become a bank in 2020 and has since amassed 1.5 million customers, lending more than £13 billion and securing two straight years of profitability. Jaidev Janardana, CEO, Zopa Bank, says: 'Stepping into everyday banking is a natural next step in Zopa's mission to build the Home of Money for its customers. We believe that British consumers deserve better than having to constantly chase deals and accept complexity or poor experience."
Daily Mail
23-06-2025
- Business
- Daily Mail
The brand new current account that gets you 7.1% interest on your savings
A popular online bank has launched its first current account, offering customers a leading 7.1 per cent interest rate on its linked savings pot. Zopa Bank's new 'Biscuit' account also offers two per cent AER interest on cash balances, with no limit on how much they can earn. The rate is fixed for 12 months and will then become variable. Customers can also earn two per cent in cashback on bills paid by direct debit, up to £1,500 per year or £125 per month, with the rate guaranteed for 12 months. Zopa, which has 1.5million customers in the UK and received its full banking licence in 2020, has so far only offered savings and credit accounts. The linked savings account will pay a 7.1 per cent rate on deposits of up to £300 per month. This would earn someone paying in the maximum amount each month £137 in interest over the year, if the rate stays the same. Interest on the pot is calculated daily and added each month. Zopa's new current account comes just a month after LHV Bank launched the first new current account in the UK since December 2022. The most recent major banking player to launch a UK current account was JP Morgan's Chase back in 2021. Zopa's chief executive Jaidev Janardana said: 'Stepping into everyday banking is a natural next step in Zopa's mission to build the home of money for its customers. 'We believe that British consumers deserve better than having to constantly chase deals and accept complexity or poor experience. 'All our products are designed to provide good value and ease, and our new bank account is another great example of this philosophy.' Zopa said its current account will allow accounts with other banks to be linked to its app, so that users can manage their money and make payments from one place. Merve Ferrero, chief strategy officer at Zopa, said: 'Many of us spread our money across different providers - holding it with high street banks, moving some into savings or investments, and spending through neo-banks. 'We do this because we want safety, good value, and convenience at no extra cost. But no single bank meets all these needs in one place. 'Zopa Bank aims to change that with Biscuit - delivering great value across everyday spending and saving, all through one seamless app experience.' What other perks does Zopa's Biscuit have? The account also comes with zero fees on overseas spending, and £200 can be withdrawn abroad over any 30-day period without incurring any charges. Above £200, a two per cent fee will be charged. Accounts can be opened online, with account holders receiving a virtual card instantly. The firm said its current account also gives users instant access to its Smart Saver savings account, which offers 3.5 per cent AER on instant-access savings and up to 4.25 per cent AER for its fixed pots, with the top rate offered on one-year fixes. The instant access rate is not a market leader, as the best-buy easy-access savings accounts are currently paying up to 5 per cent. One-year fixes elsewhere pay up to 4.55 per cent. Zopa is regulated by the Financial Conduct Authority, and accounts are FSCS protected, giving users deposit protection up to £85,000 if the bank fails. How does it compare? One of the main draws of Biscuit is the two per cent interest it offers on account balances. It is one of just a few banks to do so. The best rate is offered by Nationwide's FlexDirect current account at five per cent, however this is limited to just the first £1,500 deposited over a year. Digital bank LHV pays 3.25 per cent on balances up to £1million, while Kroo pays 3.15 per cent up to £500,000. Santander's Edge Up account pays 2.5 per cent, but costs £5 per month, while TSB's Spend & Save pays 2.05 per cent on a fee-free basis. As a fee free account, Zopa's rate puts it fairly in the middle of the pack, with Club Lloyds, Virgin Money and Bank of Scotland all paying less interest on account balances. Of course, many current accounts don't pay any. Zopa's 7.1 per cent savings rate for its regular saver, however, is a market leader. It puts the online bank in clear competition with First Direct, which offers seven per cent on savings up to £300 per month. First Direct's interest is paid after 12 months. Other competitive current accounts include Santander's Edge and JP Morgan's Chase When it comes to cashback, Zopa's two per cent on bills is generous. In fact, it is the best rate currently available, with Nationwide, Santander Edge Up and Chase each offering a one per cent cashback rate. Zopa only offers cashback on bills paid by direct debit, however - meaning customers could get a better deal elsewhere, depending on how they usually spend their cash. Chase will pay cashback on groceries, transport and fuel up to £15 per month, Nationwide's FlexDirect pays on all debit card purchases for 12 months up to £5 per month, and Santander Edge Up pays up to £15 per month on some household bill direct debits. Another thing potential customers may want to consider is that Zopa does not have any branches. Alongside an online chat function, Zopa customers do have access to a customer service phone line, open between 8am and 8pm Monday to Friday, and on weekends between 9am and 5:30pm.
Forbes
19-05-2025
- Business
- Forbes
Here's Where Fintechs Are Turning For Funding
As the fintech VC funding landscape continues to look uncertain amid wider economic turmoil, companies are turning to alternatives to secure the capital they need. Those include crowdfunding, which might be about to enjoy a resurgence, as well as lesser known sources of capital such as government funded equity investment. Despite some positive signs of recovery in the fintech funding market, with global investment in H2 2024 exceeding that in H1, VC funding still trails far behind its peak from 2021. In fact, it has yet to reach the same levels seen in 2018. And where funding has been deployed, it has tended to be at the polar opposite ends of company stage, into either very early startups, or late, well-established, profitable companies. In many cases, the latter are raising funds from private investors rather than attempting an IPO, as might have been expected a few years ago, because of the volatile environment. UK-headquartered digital bank Zopa, for example, recently raised £80 million from existing and new investors, while having said in April that an IPO is 'not a priority' and that it might be reconsidered 'if and when the markets change'. This trend for fintechs to stay private for longer, gives VCs an opportunity to make lower risk bets when deploying their dry powder. In turn making it even harder for scaling stage companies to raise and, as a result, they are looking elsewhere. Jaidev Janardana, chief executive officer Zopa Ltd., speaks at the IFGS 2023 summit at the Guildhall ... More in London, UK, on Monday, April 17, 2023. Photographer: Chris Ratcliffe/Bloomberg In 2021 the number and value of UK crowdfunding deals was soaring, however since then it has declined dramatically from 569 rounds at its peak, to 297 in 2024. Now, that picture might be about to change again, as fintechs rediscover the funding method. One such fintech is Bloom Money, a UK-based community finance company. Founder and CEO, Nina Mohanty, observed that crowdfunding was becoming particularly popular with consumer-facing fintechs as a response to VCs turning away from the segment. Of the company's own reasons for going down the crowdfunding route she said, 'We're really excited about launching our crowdfund, which is currently in early access, because we get to showcase the power of our community, and the people that actually use our product and want to invest in a more inclusive financial future. By launching a crowdfund and building the future of Bloom with our community we are excited to demonstrate to VCs that there is indeed a need and huge pool for what we are building.' Another fintech that used this option, is Zero, a UK-based environmentally sustainable alternative to banks, that raised around £400,000 of its latest £1.5 million round through crowdfunding. Meanwhile, Sibstar, a spend management app for vulnerable people, is looking to raise £250,000 through the mechanism. Both are consumer-facing fintechs, supporting Mohanty's observation. Fintechs in some areas can also access government funding, usually distributed through a development bank, as is the case in Canada and Wales. These institutions vary in how they operate, but in the two examples given, they provide a range of finance solutions directly to companies. That includes equity investment, in which case, the bank sits on a company's cap table like any other investor. The caveat is that the companies must typically have a significant physical presence in the country in question in order to access the finance. Two fintech companies that have recently raised from the Development Bank of Wales include Driverly, a platform offering adaptable apps to insurers, and Finalrentals, a car hire platform. Armin Kia, CEO of Driverly, said of the company's reasons for applying for funding from the bank, 'We've always been keen to keep a fine balance between keeping a focus on our core business, while also being prepared to react to the demands of the market. That's an important task for any leadership team. The Development Bank of Wales and our new investors can see the wider market and help us with that.' Meanwhile in Canada, the BDC has participated twice in funding rounds for financial services app Koho, most recently in 2024. Additionally, in February 2025, the BDC announced a $500 million commitment to its Growth Venture Fund which includes insurtech and fintech in its focus areas, highlighting its commitment to the sector. The funding sources listed here are just two of the options available to fintechs that aren't private VC capital. The VC market, which fuelled the growth of the fintech industry for so long, will be some time yet in fully recovering. In the meantime, entrepreneurs and founders are known to be a creative lot, and as such, we will see an increase in uptake from more alternative sources of financing as they seek the capital they need to scale their companies.
Times
12-05-2025
- Business
- Times
‘In the UK there's a lot of growth to be had, a lot of opportunity'
The government gathered leading fintech entrepreneurs to kick off UK fintech week in London this week and was met with a resounding thumbs up. Jaidev Janardana, co-founder and chief executive of the neobank Zopa was among those providing an upbeat assessment of the industry's prospects. Last week, it said it doubled pre-tax profits to £34.2 million in 2024 and grew its customer base to 1.4 million people. 'In the UK there's a lot of growth to be had, a lot of opportunity from sectors, such as fintech, to grow. I'm really encouraged by what the government is doing here to make sure we continue to remove barriers to growth,' he told the audience from financial services firms and government agencies. Richard Davies, chief executive of
