Latest news with #ZopaBank
Finextra
14-05-2025
- Business
- Finextra
Zopa raises £80 million in fresh capital ahead of bank account launch
Zopa Bank has raised £80 million in its first London Stock Exchange bond listing as it prepares for the launch of current accounts. 0 Jefferies acted as Structuring Adviser and Sole Lead Manager to Zopa on the transaction, which was oversubscribed by over two times from 20+ investors. Having had a successful €80 million equity fundraise in November 2024, the non-dilutive capital strengthens the bank's balance sheet and positions it on the starting line for its bank account launch. Zopa recently announced a doubling of full year profits before tax to £34.2 million for the financial year ending 31 December 2024 on a 30.2% revenue jump. Since launching the bank in 2020, it has attracted £5.5 billion in deposits and currently has just over £3 billion loans on balance sheet.
The Sun
10-05-2025
- Business
- The Sun
Credit card provider used by more than half a million customers HIKES interest rates adding £167 to bills
A MAJOR credit card provider used by more than half a million customers is hiking interest rates for some customers. Zopa Bank, a digital challenger bank that introduced its credit card in 2020, is raising these unwelcome charges for some of its users. 1 When the card was first introduced, it attracted many applicants with advertised rates as low as 9.9% APR. The APR, or annual percentage rate, is the yearly cost of borrowing on a credit card, including interest and fees. Although the card advertised a representative APR of 34.9% (which they legally had to offer to at least 51% of applicants), many customers with good credit scores initially received the lower rate of 9.9%. However, The Sun can reveal that Zopa Bank has now increased its lowest available APR from 9.9% to 26.6% for new customers. They are also raising rates for some existing customers who previously benefited from rates below 26.6%, leaving some users frustrated. One customer said in an online forum: "Just a heads up if you have a Zopa credit card as they have hiked my interest rate up 10 percentage points today from 12% to 22% - completely out of the blue "I can't understand why they are doing this it's puzzling. Another customer said: "Mine went up from 17% to 26.7%. "Not that I carry a balance..." Credit card companies often change their interest rates for various reasons, like market conditions or customer risk. Changes can also happen individually or across the board, so don't take it personally. If your credit card APR were to jump from 9.9% to 26.6% you'll end up paying an extra £167 in interest for every £1,000 borrowed over 12 months. That's because at 9.9%, the interest would cost you £99, but at 26.6%, it rises to £266. However, it's always important to note that if you consistently pay your balance in full each month, any interest rate changes won't affect you. A spokesperson for Zopa said: "We regularly review our credit card interest rates to ensure they provide fair value to our customers. "As part of this process, customers' rates may increase or decrease, as is the case now. "When a customer's rate changes, we provide at least 60 days' notice. "Customers have the choice to opt out from this. If they do, their interest rate will stay the same and their credit card account will be closed once the balance is fully repaid. "We don't impose a strict repayment deadline, allowing customers to pay off their balance at a reasonable pace with no impact on their credit file or any other Zopa Bank products." If you can't afford to pay more than the minimum balance but want to avoid the added costs of interest, it could be worth shifting your debt to a balance transfer credit card. The cards are a crucial tool for people who have racked up spending and are trying to repay, as they don't charge any interest on sums moved for set period of time. Think before you borrow BORROWING sounds like a simple way to help pay bills – but beware falling into debt you cannot pay back. It's always vital to ask yourself if you actually need to borrow before committing to a new credit card, personal loan or overdraft. If you cannot afford to pay off debt you already have, you should avoid at all costs taking on any more. How do balance transfer credit cards work? Credit card customers can put an end to paying interest for up to 32 months for a small processing fee of between 2-4% by shifting their debt to a balance transfer card. These cards make your debt easier to pay off because money saved on interest can be entirely put towards what you owe. However, it's important to note that you can't transfer a balance between cards from the same bank. You should always use an eligibility calculator before applying for a balance transfer card because every credit card application leaves a mark on your credit file and can affect your credit score. The top card available right now is from Barclaycard, offering an impressive 33 month 0% balance transfer deal with a fee of 3.45%. Alternatively, HSBC and Tesco Bank provide strong options with 32 month 0% balance transfer deals, featuring fees ranging from 3.19% to 3.49%. To compare all the available cards, visit price comparison websites like MoneySavingExpert's Cheap Credit Club or Compare the Market. Once you run your details through an eligibility calculator and you've been shown that you're likely to be accepted, make a formal application. To do this, you will need to provide your name, address and email address as well as details of your income so a provider can assess your eligibility. You will also need to provide details of how much money you want to transfer to the new card, but you can often do this after you have been accepted. How to get free debt help There are several groups which can help you with your problem debts for free. Citizens Advice - 0800 144 8848 (England) / 0800 702 2020 (Wales) StepChange - 0800138 1111 National Debtline - 0808 808 4000 Debt Advice Foundation - 0800 043 4050 You can also find information about Debt Management Plans (DMP) and Individual Voluntary Agreements (IVA) by visiting or Speak to one of these organisations - don't be tempted to use a claims management firm. They say they can write off lots of your debt in return for a large upfront fee. But there are other options where you don't need to pay.
Daily Mail
24-04-2025
- Business
- Daily Mail
Revolut to start British banking operations this year as profits surge
Revolut expects to finally start operating as a UK bank in 2025 after the challenger's profits and revenues surged last year. The group first applied for a UK banking licence in 2021, but the approval process ended up taking more than three years. Revolut faced a series of obstacles while trying to secure a permit from the Prudential Regulation Authority, but secured its licence from the regulator in July 2024. On Thursday, Revolut said it was 'working hard to complete the setup of our processes before formally starting operations as a UK bank during 2025'. The firm's annual pre-tax profit rose by 149 per cent last year to £1.1billion as the firm rode a wave in crypto trading and earned more from higher interest rates and card fees. The London-based fintech firm saw its revenue increase to £3.1bllion in the period, up from £1.8billion the previous year. Crunch time: Nikolay Storonsky is the chief executive and founder of Revolut Revolut said the upturn in revenue was driven by card payments, income from interest on the back of higher interest rates and its wealth arm incorporating trading and crypto products. The firm's annual pre-tax profit was more than double the £438million in 2023. Customer numbers grew to 52.5million, up from 38million in 2023, Revolut said. Wealth revenues grew 300 per cent year-on-year, driven by increased crypto trading and the launch of the group's crypto exchange. Revolut remains small for customer lending, reporting £979million of customer loans on its balance sheet in 2024, up from £528million the year before. Revolut was valued at around £34billion last year, rivalling large European lenders, and it has plans to expand into mortgages and consumer lending to challenge high street lenders. The valuation emerged after the group secured a UK banking licence, ending a three-year wait after running into difficulty following scrutiny over its internal accounting. In its annual report, Revolut also said its chief executive and founder, Nikolay Storonsky increased his ownership in April 2025 by acquiring an 'indirect, non-voting interest' in the company during a reorganisation of its ownership structure. Storonsky now owns, directly or indirectly, more than 25 per cent of Revolut, the report said, without disclosing what he owned previously. Storonsky said on Thursday that 2024 had been a 'landmark' year for the business. He added: 'We're making strong progress towards 100million daily active customers across 100 countries, driven by growth in the UK, Europe and our expansion markets.' Revolut was founded in London as a decade ago as a provider of foreign exchange and money transfer services. Zopa Bank doubles pre-tax profit Online-based bank Zopa Bank doubled its pre-tax profit in its second full year of profitability. The London-based firm pocketed £34.2million in the 2024 financial year, up from £16.8million the previous year. Revenue jumped 30.2 per cent to £303.4million, driven by a 60 per cent surge in its deposits base to £5.5billion. The rise in income offset a 28 per cent increase in operating expenses, which reached £105.3million. Jaidev Janardana, chief executive at Zopa, said: 'We have created a business model where we win when our customers win, and our interests are very aligned with our customers – we feel that's a more sustainable way of creating a brand and running business.' On the possibility of an upcoming initial public offering, Janardana, said 'the business was ready, the markets need to be ready as well.'
The Independent
23-04-2025
- Business
- The Independent
UK's ‘green' digital bank makes first profit as challengers boom
A green-focused digital bank has said a wave of consumers buying heat pumps and solar panels and switching to electric cars has helped it make its first yearly profit. Tandem Bank, which launched in 2014, is among the UK challenger banks to see earnings rocket over the past year. The Blackpool-based group said it wants to make it easier for people to live a 'greener lifestyle' at a time when costs are rising and environmental rules are becoming more complex. It reported an annual pre-tax profit of £4.4 million in 2024, having previously been operating at a loss. On an underlying basis, which strips out what it views as one-off costs, profits surged 40% to £24.1 million compared with the previous year. 'Green' lending rose 9% year-on-year to total £572 million, representing more than a third of its total loans, Tandem revealed. This incorporates all the bank's lending products targeted at borrowers who are transitioning to a lower-carbon lifestyle, such as installing heat pumps, solar panels and energy-efficient windows or boilers in their homes. It also offers a mortgage with an interest rate discount to people whose homes are more energy efficient. New motor finance lending hit £160 million, with 80% of cars financed meeting emission standards for cities across the UK, Tandem said. Alex Mollart, Tandem's chief executive, said the bank's 'mission is to make it easier for people to choose a greener lifestyle', particularly as 'products and services get more expensive, environmental rules and regulations get more complex, and banks offer increasingly limited services on old tech'. The latest results from Tandem reflect a wave of growing challenger banks that have muscled into the market with new products, technology and customer service that appeals to digitally savvy consumers and businesses. Zopa Bank, in newly released annual accounts, reported its second full year of profitability. The digital bank, which was founded in 2020, revealed its pre-tax profit doubled to £34.2 million in 2024, from £16.8 million the previous year. It now has about 1.4 million customers and saw savings and lending grow during the year, with the group offering products including loans, credit cards and car finance. Zopa last year partnered with John Lewis to offer loans of up to £35,000 for spending like home upgrades, a new car, holidays, or big events such as a wedding. Meanwhile, Allica Bank, which has been dubbed one of Britain's fastest-growing fintechs, revealed earlier this month that it had almost doubled its yearly profit. The bank, which focuses on lending to established small and medium businesses, reported a pre-tax profit of about £30 million for 2024. Allica's chief executive Richard Davies said the pace of growth was 'testament to the frustration that our customers feel with the status quo'.
