Challenger bank launches new account
Zopa Bank has announced the launch of its new current account offering, identifying what it describes as a “huge gap in the market”.
The UK digital bank unveiled the product on June 24, positioning it as a competitive option for customers seeking strong returns.
Branded as the Zopa Biscuit current account, the product offers up to £256 per year in combined cash back and interest. Customers can earn 7.1% AER on deposits up to £300 per month, a rate Zopa claims is the highest currently available in the UK market.
In addition, Biscuit current account holders will recieve 2% AER interest on all balances, along with 2% cashback on bills payments, applied to up to £1,500 in annual direct debits.
With a focus on a simplified user experience, Zopa announced its current accounts can be opened in minutes via an automated onboarding process.
Instant virtual cards will also be accessible for current account holders, that open up access to account benefits. Furthermore, customers also have the ability to link their external accounts within the Zopa app to manage, move or make payments from a singular platform.
“Stepping into everyday banking is a natural next step in Zopa’s mission to build the Home of Money for its customers,” said Jaidev Janardana, CEO at Zopa Bank.
“We believe that British consumers deserve better than having to constantly chase deals and accept complexity or poor experience. All our products are designed to provide good value and ease, and our new bank account is another great example of this philosophy.”
Challenging the challenger banks
Zopa’s Biscuit current account launch builds off the back of the bank’s customers earning up to £205m in interest last year. The digital bank revealed in its 2024 financial report its customers saved £5.4bn in savings last year.
Zopa is aiming to challenge similar digital banks, such as Revolut and Monzo, by offering cashback and favourable savings accounts that have attracted 40 million customers to Revolut and over 10 million to Monzo.
Currently with 1.5 million customers, Zopa may be some ways away from reaching Revolut and Monzo’s customer base, but by offering more competitive interest and savings rates, Zopa is vying for market share.
Revolut currently offers 4% AER for its standard plan current accounts, while Ultra plans offer 5% AER. Monzo offers a 3.25% AER rate for its standard savings pots for customers on free accounts, but also offers a higher rate of 3.75% for paid Monzo plans.
Zopa offers 7% AER on its Biscuit Regular Savour pot, considerably higher than Revolut and Monzo’s offerings which may be a conscious move by the bank to attract savings customers away from the UK’s two most popular digital banks.
“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,” added Merve Ferrero, Chief Strategy Officer at Zopa Bank.
“But no single bank meets all these needs in one place. Zopa Bank aims to change that with Biscuit — delivering great value across everyday spending and saving, all through one seamless App experience.”
Backed by a full UK banking license, Zopa is aiming to build off the back of a strong 2024 financial performance, reporting £34.2m in pre-tax profit which was doubled from the £15.8m posted in 2023.
Zopa scaled revenue last year which increased 30.2% to £303.4m in 2024 and total operating income rising 33.9% to £297.8m.
Within the report, which was published April 24, CEO Janardana revealed that the bank’s focus was on “building products that genuinely delight” customers, committed to bringing value to spending and saving.
