British digital lender Zopa Bank raises €80m to fuel growth and innovation

Zopa Bank has secured over €80 million in an equity funding round led by A.P. Moller Holding and supported by existing investors. This fresh capital is set to propel Zopa’s ambitious growth strategy, including the launch of a flagship current account in 2025 and an innovative Generative AI (GenAI) feature poised to redefine personal financial management.

This funding round reaffirms Zopa’s position as one of the UK’s leading digital banks, with a mission to merge technology with financial expertise to deliver customer-focused banking solutions.

Zopa Bank’s growth trajectory

Since its transition to a fully licensed bank in 2020, Zopa Bank has emerged as a leader in digital banking, combining agility with two decades of lending expertise. The bank has already attracted over 1.3 million customers, facilitated £13 billion in loans, and accumulated £5 billion in customer deposits. With €80 million in fresh equity, Zopa is poised to expand its market share and product offerings further.

CEO Jaidev Janardana shared that the funding not only validates Zopa’s financial performance but also underscores its growth potential. He highlighted the bank’s vision of becoming “Britain’s best bank” by offering products that prioritise ease, value, and customer satisfaction.

Pioneering innovation with GenAI and new accounts

A significant portion of this funding will drive two key initiatives: the rollout of a flagship current account in 2025 and the introduction of a pioneering GenAI feature. The GenAI platform is expected to enhance how customers interact with their finances, providing tailored advice and intelligent tools to improve financial health.

These innovations align with Zopa’s goal to simplify banking and provide cutting-edge services that empower customers to make smarter financial decisions.

Strategic partnerships and product offerings

In 2024, Zopa partnered with major UK retailers like John Lewis and Britain’s largest electricity supplier, Octopus Energy, to offer a suite of regulated Buy Now, Pay Later (BNPL) and retail finance products. These collaborations reflect Zopa’s commitment to supporting sustainable initiatives, such as helping consumers transition to green energy, while maintaining competitive credit solutions.

Zopa also offers market-leading savings products and credit card services that help customers pay down balances faster, demonstrating its commitment to improving financial health.

A trusted and award-winning digital bank

Unlike many fintech peers, Zopa Bank holds a full UK banking licence, ensuring it meets rigorous regulatory standards and safeguards deposits under the Financial Services Compensation Scheme (FSCS). This framework protects customer deposits up to £85,000 per account, adding a layer of trust that differentiates Zopa from other digital banks.

Zopa’s reputation for excellence has been recognised repeatedly, with accolades such as the UK’s Best Personal Loan Provider and Best Credit Card Provider at the 2024 British Bank Awards. These achievements underscore its commitment to delivering superior financial products and services.

Looking ahead: Expanding horizons

The €80 million equity boost positions Zopa Bank for long-term success as it continues to challenge traditional banking norms. With plans to launch its flagship current account, introduce GenAI-powered solutions, and expand its suite of innovative products, Zopa is set to redefine the digital banking experience for millions of UK consumers.

As it grows, Zopa remains focused on its core mission: blending technology with financial expertise to deliver meaningful value to its customers.