U.K. challenger bank Zopa reported Thursday (Aug. 25) that its deposits now total more than £2 billion, driven by its offer to help customers do more with money that would otherwise sit idle.
“With rising inflation, energy prices and rent increases adding considerable pressure on consumer finances, Zopa’s ambition is to make the billions in ‘zombie money’ sitting idle in U.K. current accounts work harder,” the bank said in a media alert sent to PYMNTS Thursday.
Zopa said in the alert that it’s one of the fastest challenger banks to reach the £2 billion mark, having launched in 2020.
The company’s offerings include a mobile only, “hybrid” savings account called Smart Saver and a fixed-term savings account called FTS. Zopa said the former attracted £850 million in seven months, while the latter drew £1.15 billion in 24 months.
“The Zopa Smart Saver combines the best of both banking and FinTech when it comes to helping customers save money,” Zopa Chief Strategy Officer Merve Ferrero said when the product was launched in February. “By building on the foundations of the easy access account but evolving it, Zopa offers a higher interest rate in a sustainable manner.”
Zopa also noted that since the launch of its bank in 2020, it has put more than £1.5 billion of loans on the balance sheet, issued 350,000 credit cards and tripled its revenue per customer.
The bank also offers a buy now, pay later (BNPL) product to diversify the array of credit and financing options it can offer to customers.
“All those customer preferences are valid and we need to have a range of options, [including BNPL], to meet those needs,” Zopa CEO Jaidev Janardana told PYMNTS in a June interview.
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