The UK digital banking sector is becoming increasingly competitive, with Zopa announcing impressive growth and the opening of a new office.
Since launching four years ago, Zopa has secured a banking licence, grown to over 1.4 million customers and achieved profitability.
Last year proved to be particularly successful for Zopa, marked by continuous double-digit growth and a £68m equity raise led by A.P. Moller Holding, the owners of the Maersk shipping and logistics giant and investors in Danske Bank.
Building on this success, the digital bank has expanded its presence with a new office in London, nearly doubling the size of its previous workspace.
Iain Kendrick, Chief People Officer at Zopa, said: “Our relocation to a brand-new headquarters at 20 Water Street in the heart of Canary Wharf marks a major milestone in Zopa’s growth journey.
“This move is more than just a change of address – it’s a statement of intent as we change the face of banking in a location previously dominated by the UK’s established banking players.”
Although still a relatively young company, Zopa now competes with other UK challenger banks like Starling Bank, Monzo and Revolut. These digital banks aren’t just rivalling one another – they are also challenging traditional banking institutions.
In recent years, more consumers have turned to digital banks, drawn by factors like the digitalisation of banking services, the closure of physical branches and the superior technological foundations these banks offer.
Traditional banks often face criticism for relying on outdated technology and third-party providers to offer services that digital banks can handle in-house. Starling Bank stands out in this respect, as its infrastructure, built with Engine by Starling, was recently adopted by Australia’s AMP Bank.
Last year, Tink released a report revealing that 57% of banking executives across the UK view attracting young consumers as one of their biggest challenges. Payment Expert also spoke with Thomas Byrne, Head of Product EMEA at nCino, to understand what traditional banks need to do to stay competitive.
While longstanding institutions face increasing pressure from new players, Zopa is not resting on its laurels and continues to push forward.
Kendrick concluded: “As we continue to scale, investing in a best-in-class workspace reinforces our ambition, culture, and commitment to attracting and retaining top talent.”
