Metro Bank and Zopa join forces to “disrupt” British banking
Uk's newest high street bank will lend to businesses through peer-to-peer lending platform
Metro Bank has formed a partnership with 2008 Startups 100-listed Zopa to become the first British bank to lend through a peer-to-peer platform.
Metro is said to be the UK’s newest high street bank in more than 150 years, having launched in 2010 as a challenger to the traditional banks by offering competitive services for the consumer.
Launched in 2005 by Giles Andrews (pictured), Zopa matches lenders looking for a better return with borrowers looking for low rate loans, and has lent an estimated £800m to date – claiming to be one of the biggest peer-to-peer consumer lenders in Europe.
This latest development is part of the two companies’ aim to disrupt the established banking system, with a focus on helping customers get a loan to finance a car, home improvement or to consolidate existing debts and generate a good rate of return.
Unlike relationships already established between banks and peer-to-peer platforms, Zopa says its marketplace randomly allocates loans between individual and institutional investors.
Zopa CEO, Giles Andrews, commented: “This is another milestone for Zopa and the peer-to-peer industry as it brings together two key challengers to the traditional financial services landscape and signals our intent to become a mainstream service.”
Craig Donaldson, CEO of Metro Bank, continued: “We’re committed to revolutionising UK banking and we’re delighted to have partnered with Zopa, a fellow financial challenger… the perfect player in the peer-to-peer space to help us lend funds to consumers.