- Zopa, the UK-based fintech lender backed by SoftBank, is set to double its pre-tax profits in 2024, reaching £31.6 million, driven by strong demand for its digital banking services.
- The company plans to launch a current account in 2025, aiming to expand its offerings and further challenge traditional banks in the competitive digital banking sector.
What happened
Zopa, the British fintech lender backed by SoftBank, is on track to double its pre-tax profits in 2024, reaching a projected £31.6 million, up from £15.8 million last year. The company’s growth is largely driven by strong demand for its online banking services, including credit cards, personal loans, and savings accounts, all accessible via its user-friendly mobile app.
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In addition to the impressive profit increase, Zopa is set to achieve a significant revenue milestone in 2024, forecasting a 35% jump to over £300 million from £222 million in 2023. This growth trajectory is a clear sign that Zopa’s fintech offerings are resonating with consumers, even as the UK economy continues to recover.
CEO Jaidev Janardana attributes much of this success to improving consumer sentiment in the UK, where Zopa operates exclusively. “We’ve hit or exceeded our plans across all metrics in 2024,” he said. The company’s competitive advantage lies in offering higher savings rates compared to traditional banks, which becomes increasingly important during economic downturns. Despite a “tight” market, Zopa continues to grow and plans to expand its product offerings, with a key focus on launching a current account in 2025.
Why this is important
Zopa’s fintech plans to double profits and launch a current account in 2025 signals a significant shift in the digital banking landscape. As a growing force in online finance, Zopa’s commitment to providing high-yield savings accounts and an easy-to-navigate mobile experience places it in direct competition with other digital-first banks such as Monzo and Revolut.
The company’s expansion into current accounts, set for launch next year, is poised to offer consumers a seamless banking experience, with features such as managing multiple accounts in one interface and access to competitive savings rates. This move could further solidify Zopa’s position in the digital banking sector, particularly as traditional banks like HSBC and Barclays face increasing pressure from agile fintech competitors.
With SoftBank’s backing and a clear focus on product innovation, Zopa is positioning itself as a major player in the evolving fintech space, making it one to watch for future growth opportunities.
