Digital bank Zopa has launched its first current account, marking a significant expansion five years after pivoting from peer-to-peer lending to become a fully licensed bank.

The mobile-first Biscuit account promises customers an average of £256 annually in cashback and interest, positioning itself as a competitive alternative to established players including Chase UK, Revolut and Monzo.

The account offers 7.10 per cent AER on deposits up to £300 per month, 2.00 per cent AER interest on all balances, and 2.00 per cent cashback on bills up to £1,500 of direct debits annually. Zopa claims this represents the highest deposit rate currently available in the market.

Customers can open accounts within minutes through automated onboarding, with instant access to virtual cards and the ability to link external accounts through the Zopa app. The account also provides immediate access to Zopa's Smart Saver product and its loan and credit offerings.

Jaidev Janardana, chief executive officer at Zopa Bank, said: "Stepping into everyday banking is a natural next step in Zopa's mission to build the Home of Money for its customers. We believe that British consumers deserve better than having to constantly chase deals and accept complexity or poor experience."

The launch comes as Zopa seeks to capitalise on research showing that a quarter of Britons strategically chase cashback offers, while nearly one in five maintain multiple bank accounts to find value and avoid fees.

Merve Ferrero, chief strategy officer at Zopa Bank, added: "Many of us spread our money across different providers — holding it with high street banks, moving some into savings or investments, and spending through neo-banks. We do this because we want safety, good value, and convenience at no extra cost. But no single bank meets all these needs in one place."

Zopa has built its current account capabilities over the past year, testing the product with around 80,000 customers using a team of 90 specialists. The company now serves almost 1.5 million customers across its savings and loans products.

The bank, which counts SoftBank among its investors, maintained a $1 billion valuation after raising €82 million last year. It doubled pre-tax profits to £34.2 million in 2024 and is expected to move to new headquarters in Canary Wharf later this year.

Janardana told Bloomberg News that Zopa aims to serve more than 5 million customers within three to four years, growing to over 10 million customers over five to seven years. The bank is targeting deposits of around £1,500 to £2,000 per account.

The current account launch intensifies competition in the UK digital banking sector, where established challengers have already gained significant market share. Monzo has attracted 12 million customers over the past decade, while Revolut reached 52.5 million customers globally last year.

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