What people are saying about us
Dan Smith: Zopa CEO Giles Andrews: less talk about rebuilding trust in banks, more doing
Giles Andrews is CEO and co-founder of Zopa, a P2P lending business, which has lent more than £300 million since its foundation in 2004. Zopa claims peer-to-peer lending is more efficient than the traditional banking model and therefore allows it to offers better rates to savers and borrowers. It has been voted "Most Trusted Personal Loan Provider" in the Moneywise Customer Awards for the past three years.
Katherine Griffiths: Peer-to-peer lenders pose challenge to high street banks
Websites that link borrowers and lenders directly are on the brink of hitting £500 million in loans in Britain — and the industry’s leaders believe that they pose an increasing challenge to the big high street banks.
The lenders who won't damage your credit score
Zopa won't complete a "hard search" on your credit file before lending to you, until you have accepted the personalised loan quote. A Zopa spokesperson told me: "We don't change an applicant's quote. What they receive initially as a personalised (soft search) quote is what they get as a final APR."
The Daily Mail
Sam Dunn: Britain's biggest lend-to-save firm Zopa to ring-fence savers' cash in a bid to shore up confidence
Zopa, which has matched more than £300million of savers’ money with borrowers, has set up an emergency fund to pay out to savers whose loans to bad debtors aren’t fully repaid.
The Sunday Times
James Charles: Peer-to-peer borrowers to get protection
SAVERS who lend money through Zopa, Britain’s largest peer-to-peer website, can now protect themselves against the threat of default. The new “Safeguard” facility, introduced last Tuesday, will refund money lost, including interest, in the event of default. Borrowers will pay a marginally higher fee — roughly £70 extra on a £7,500 loan over five years — to fund the facility.
This Is Money
Johanna Gornitzki: 'I thought beating the banks sounded like a great idea': Lend-to-save pays top rates - but also brings dangers
Zopa has just launched another option called Safeguard. Savers can earn a maximum 5.1 per cent but Zopa promises to make up all the money owed by a borrower, including the interest, if they default. Tax is charged only on the 5.1 per cent. This is the only option for new lenders, while existing lenders can use all options.
Simon Bain: New safeguards add extra security for peer-to-peer lending schemes
This week Zopa, the market leader, launched a new Safeguard tool to add security to the promise of better savings rates. "Zopa savers cut out banks and building societies and earn 5% on their savings by lending their money directly to other responsible people," the lender says. "Despite Zopa's default rate being extremely low – 0.8% on all money lent since launch – the Zopa Safeguard is now available to make up all the money owed from a borrower, including the interest, in the rare instance they are unable to pay back their loan."
Andrew Hagger: Zopa's peer-to-peer lending passes £300m
This week Zopa reached a new milestone of £300m lent to UK consumers through its peer-to-peer lending platform. Giles Andrews, chief executive of Zopa, said: "We have already seen a 200 per cent uplift in savers signing up to Zopa in 2013, and with the financial sector experiencing a challenging time, this signals an exciting opportunity for us and future for the peer-to-peer industry."
Anil Stocker: The future of banking – and why it won't be determined by banks
New firms are popping up every month, offering a better way to run finance through the internet. They are raising and using capital in ways that hadn’t been thought up ten years ago, such as Zopa or Ratesetter’s peer-to-peer lending models. They focus on a single area of finance, aiming to provide faster and more efficient service than the banks can.
The Evening Standard
Lucy Tobin: On the money: A peerless way to get your money working
Zopa claims its average rate after charges over the six months has been 5.1%... The site’s figures suggest that for a three-year loan, an investor would earn a headline rate of 5.5% interest from Zopa for a lower-risk A*-rated investment.
The Daily Mail
Lee Boyce: Numbers placing their cash with lend-to-save firm Zopa leap as savers hunt alternatives to lousy bank returns
Zopa currently offers a return of 5.1 per cent on depositors' money after fees and defaults are factored in. Investors are paid interest monthly and can withdraw this when they want to. As savings rates continue to crumble, this figure looks increasingly attractive.
Zopa founder Giles Andrews: Businesses need to be transparent
Suddenly, Zopa’s story became really relevant, Andrews says. The key to its success was talking to customers delivering on what they promised: ‘Focusing on transparency is a really good start. If people know what you do, it’s quite easy to measure yourself against what you’ve told people you are going to do.
This Is Money
Amy Andrew: Should you ditch the banks and their low savings rates?
The first lend-to-save firm, Zopa was launched in the UK in 2005, and along with the other two most established lend-to-save companies, Funding Circle and RateSetter, it has experienced huge interest from investors comfortable with a little risk.
Andrew Hagger: Money Insider: Avoid big banks for loans of less than £5,000
Zopa, the first peer-to-peer lender in the UK, and RateSetter, one of the fastest-growing lenders in the peer-to-peer market, both offer some of the best-value deals at 8.2 per cent and 8.9 per cent, respectively, for a £3,000 loan over three years.
Nils Pratley: After Cyprus, how many more crises can the euro survive?
Zopa has lent £288m in total, and RateSetter £63m. But the model is working smoothly. Note, too, that Jacob Rothschild, one of the UK's most successful investors, bought a stake in Zopa last year. That's a reasonable indication that the peer-to-peer pioneers have started something significant.
Patrick Collinson: 10 lessons from the Cyprus bailout
Savers can put their cash into the mushrooming "peer-to-peer" sector. These companies cut out the banks and connect savers directly with borrowers. Zopa is the biggest, but there's also Funding Circle, which specialises in lending to businesses.
Emma Simon: Can you trust ‘peer to peer’ lending?
The names of the biggest peer-to-peer lenders – Zopa, Ratesetter and Funding Circle – are hardly household names, and certainly far less familiar than the likes of Barclays, HSBC or NatWest. But recently the Bank of England has suggested that these new kids on the block could become a major force in the financial market over the next decade.
This is Money
Laura Shannon: Make sure your debt is as cheap as possible
Three years ago James Melville, 39 ... took out a £6,000 loan over two years with peer-to-peer lender Zopa. James chose Zopa because it allows unlimited penalty-free repayments. He cleared the debt within six months and saved himself nearly £500 in the process.
Andrew Hagger: Peer-to-peer lending up as rates languish
Zopa remains the biggest player and to date has arranged more than £277m in loans during the last eight years and now has over 500,000 members on its books. The average return paid to lenders in the last 12 months after any charges and defaults is an impressive 5.4 per cent.
Miles Brignall: Isa providers battle to avoid being best-buy
Savers are being hit by further rate cuts, with the banks no longer in need of their money to prop up balance sheets...Peer-to-peer lenders such as Zopa.com have come of age and are offering significantly better rates than your local bank – typically 5.4%.
Lex: Peer–to–peer lending – done deal
Tired of banks? Join the queue. Depositors want better interest rates. Consumers want alternative sources of finance. Governments want more lending, but banks must deleverage to meet global capital rules. Cue peer-to-peer (P2P) lending, online platforms that match investors with borrowers. With no bank overheads, P2P lenders offer higher rates than mainstream banks. Never mind the attempts by UK policy makers to egg on challengers to the status quo, P2P is already on the case. In seven years, Zopa, the UK’s largest such lender, has lent almost £260m gross.
Peer-to-peer lending 'set to double' in 2013
Giles Andrews, CEO of Zopa, told i that he saw 2013 as the best year ever for the industry as consumers deserted mainstream banks in their droves. "The perception of banks is that they are weak and I can't see that changing anytime soon. Peer-to-peer lending already accounts for over 1 per cent of the personal loan market and there's no reason why in a few years we can't see that at 10 per cent. We're predicting at least a doubling of the industry in 2013," he said.
London Evening Standard
Anthony Hilton: Peer-to-peer lending is here to stay
The day when we don’t need banks — or at least not in the classic High Street form — is closer than you might think. On the past few years, businesses such as Zopa, RateSetter and Funding Circle have made remarkable progress in creating market places for money
Margareta Pagano: Peer-to-peer lending boom could make banks obsolete
The rise of peer-to-peer lenders such as Zopa and Funding Circle – which directly match up firms in need of cash with investors – and so-called crowd-funding, where small amounts are raised from a large number of funders, will challenge the nation's major financial institutions, according to Andrew Haldane, the Bank's director of financial stability.
Patrick Collinson: Vince Cable launches £110m loan scheme aimed at small firms
The government is to bypass the traditional banks and lend money directly to small businesses and small traders at an interest rate of about 7%-8% in a £110m scheme that will use so-called 'peer to peer' internet-based lenders such as Zopa and Funding Circle.
Robert Cookson: Rothschild buys into peer-to-peer lending
Jacob Rothschild, scion of the eponymous banking dynasty, has bought a stake in a peer-to-peer lending company that allows people to extend credit to each other without going through banks. RIT Capital Partners, Lord Rothschild’s London-listed investment trust, bought into Zopa in the expectation that it will eat into a business traditionally dominated by banks.
Holly Thomas: How to protect your cash from inflation
Sites such as Zopa.com and Ratesetter.com are designed to cut out the banks by matching individual borrowers with investors.
This is Money
Richard Dyson: 'I borrowed £1,500 at 10% to take my kids to Ibiza': How the boom in alternative credit and DIY lending is teaching banks a lesson
Technological advances have enabled small savers and borrowers to come together in transactions known as ‘social’ or ‘peer-to-peer’ lending...The most established social lenders are zopa.com and ratesetter.co.uk, both growing fast.
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