Zopa: Bank launch won’t impact P2P rates

ZOPA has insisted its peer-to-peer lending rates will not be dictated by the savings products on offer when its bank launched.

The P2P platform got its banking licence this week and is set to test its products among staff and customers.

Eventually its P2P and bank savings products will all be accessible in one place.

It currently offers target returns of 4.5 per cent on its Zopa Core product and 5.2 per cent on Zopa Plus.

This is way above any bank savings products, raising questions as to whether the platform would have to lower its P2P rates so its banking offering is more competitive.

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Zopa denied this was the case.

“P2P rates will not be tied to the deposit rates as the products are fundamentally different,” the platform said in a statement to Peer2Peer Finance News.

“We believe that when customers are properly informed, they are more than able to decide between higher rate investments with slightly higher risk in P2P and lower-rate Financial Service Compensation Scheme-protected deposits with no risk.

“Of course, customers are already used to this dynamic as most will already hold savings with other providers alongside their P2P investments.

“Part of our decision to launch savings accounts was a response to customers asking to have both their savings and their investments with Zopa, so that they could enjoy the same great service across both sets of products.”