Zopa set to close P2P lending operations
Zopa is to close its peer-to-peer lending operations in the new year.
The world’s oldest P2P lender has written to investors to say all investment funds will be returned to holding accounts by 31 January 2022.
A note on the Zopa website also states that “we’re no longer opening new investment accounts.”
Zopa chief executive Jaidev Janardana (pictured), said it was a tough decision, and not one taken lightly.
“We deliberated several options for how to close the P2P side of our business in a way that delivers the best outcome for our customers,” he said.
“After careful consideration, we have decided that the best way forward is the sale of all retail investor portfolios at full value.
“This will lock in the interest earned by investors so far and ensure the timely return of their money.
“To make this as smooth as possible, Zopa Bank will be buying the P2P loan portfolio and P2P customers will receive their investment balances back by the end of January.”
Peer2Peer Finance News reported in October that Zopa was considering the “strategic direction” of its P2P lending platform.
Its 2020 annual accounts said future growth will be driven by balance sheet lending.
Zopa had closed to new investors earlier this year so it could focus on existing users funding new finance.
It comes after Zopa gained a full licence for its bank launch last year.
The accounts, representing the 12 months to 31 December 2020, showed that £633m of new lending was made through the P2P platform last year, of which Zopa Bank funded £456m.