Zopa quits P2P lending

Zopa have decided to leave the P2P lending market, and instead just be a bank. Blamed on a downturn in P2P demand due to failures by other lenders and increased regulation. It’s easier paying a flat 1.37% interest into savings accounts than ~4% across lots of individual investors. Fellow P2P lenders Funding Circle froze new P2P lending last year, and probably going the same route.

I had a year of ISA with Zopa which will end up with Freetrade. Any ideas for fixed income ETFs? I think Freetrade should publish a marketing thing about fixed income ETFs to lure ISA transfers over - I bet a lot of savers at Zopa have no idea they’re even a thing. @Viktor

3 Likes

Zopa completed their sale of my P2P loans. There are going to be millions of pounds of Zopa ISA savings looking for another home. Many will not know there are fixed income ETFs and corporate bond ETFs which will have similar performance and risk profiles to Zopa loans.

Freetrade should do a news post about this, tailored specifically to Zopa/p2p investors. It should include instructions on where to find the Zopa details needed to make an ISA transfer.

@DanLane @sampoullain

5 Likes

Cc @gemma @Viktor @Stalwar @mynameisgeraint :point_up:

4 Likes

It would be nice if there was another transfer offer from Freetrade so that the Zopa money could be transferred in…

2 Likes