Digital Bank Zopa has set its sights on UK Current Accounts after reporting its first year of profitability since its launch in June 2020.
In its latest financial report, Zopa has swung to a pre-tax profit of £15.8m for the financial year ending 31 December 2023 from a pre-tax loss of £26m for the year ending 31 December 2022. Furthermore, its total operating income for the same period to 31 December 2023 was £222m, up 47.8% year-on-year.
Additionally, this landmark year saw the digital bank’s customer base grow to over one million in the period, with the bank’s deposit base increasing 14.9% to £3.4bn and its loans on balance increasing by 27.3% to £2.7bn.
Jaidev Janardana, CEO at Zopa Bank, commented: “2023 was a landmark year as we achieved our first full year of profitability, grew to over a million customers, and maintained our market leading net promoter score.”
As mentioned by Janardana, the bank maintained its industry net promoter score (NPS) of 72, which was supported by its proprietary technology that enabled it to focus on offering straightforward experiences at speed. Technology also played an important role in further driving Zopa’s cost-to-income ratio down to 38.7%.
The landmark year was initially announced at the Finance’s Global Summit, where the bank emphasised that despite a challenging ‘macroeconomic environment’ the bank saw a 30% growth across its products and a 29.7% increase in total revenue to £226m.
In 2023, the bank completed two £75m funding rounds, used to fuel the company’s continued growth and expansion.
Looking forward, Zopa has announced that it has ‘set its sights’ on UK Current Accounts, stating that it is ready to ‘reinvent’ the way that customers manage their money.
Janardana added: “Across all our products, the opportunity is huge and we remain passionate about changing customers’ relationship with money for the better. We are uniquely placed to achieve this due to our customer-centric culture, lending expertise, and use of technology and data. Together, these capabilities create an exceptional experience to help customers reach their financial goals.”
Fellow fintech ClearBank also reported a first year of profitability in 2023, revealing a revenue of £111.3m, an increase of 91% on £101.3m the year prior.
