Zopa closes retail investing business

After 16 years of peer-to-peer (P2P) investments, Zopa is closing its retail investing business.

The British FinTech revealed it would sell all of its retail investor portfolios at full value.

The company said to make the move “as smooth as possible” it will buy the P2P portfolio and P2P customers will receive their investment balances back by the end of January 2022.

The firm explained that over the past few years, customer trust in P2P investing has been damaged by a “small number of businesses” whose approach led to losses for retail investors.

The company added that changing regulation which followed this damage had raised the operational cost of running its P2P business, as well as the cost of attracting new investors to its platform.

“To offset these increased costs and ensure we have a sustainable and profitable business, we’d need to reduce investor returns to a point where they’d no longer be attractive and commensurate with the risk that investors take on,” wrote the company’s chief executive, Jaidev Janardana, in an update.

    Share Story:

Recent Stories


New Business Frontiers
FStech’s Mark Evans discusses the future of financial services with Liu Jianning of Huawei, covering the limitations that current thinking can impose, how financial institutions can embrace technology to be both agile and resilient, and making space for the organisation to focus on the job of creating innovative business models and on delivering business value for their customers.

The Future of Intelligent Finance
FStech Group Editor Mark Evans sits down with Jason Cao, President of Global Financial Services Business Unit, Enterprise BG at Huawei ahead of its Intelligent Finance Summit which was held on 3rd and 4th of June in Shanghai. This Q&A delves into key trends in digital transformation of the financial services industry as well as a look at how data, robotic infrastructure, intelligent storage and innovative technologies are shaping the future for FSIs.

The Rise of Instant Payments
Instant payments are creating new business opportunities for banks by providing more touchpoints than ever. With these evolutions underway, Featurespace brought leading industry experts together to discuss how they are protecting customers from fraudsters in real time, utilizing innovative and disruptive solutions to reduce fraud. Click here to find out more.