As you may have seen in the news recently as covered by the likes of the FT. Zopa along with other UK peer-to-peer lending (P2P) companies, have agreed to make available an allocation of loans for institutional lenders.
We have seen significant demand over the past 12 months with borrower demand outweighing lender funds, and allowing institutions to lend through Zopa will enable us to meet this demand and help thousands more UK borrowers get a great value loan.
So how will institutional lending work and will it affect my lending?
We will treat loans for institutional lenders slightly differently as they will comprise of whole loans that will not be covered by the Safeguard fund. One institution is trialling a separate and riskier market on its own and we are monitoring its performance.
We want to reassure you that as a retail lender, you are our priority when it comes to lending. Our retail lending community is the largest in the UK P2P market at just over 52,000 lenders and is key to the future success of Zopa. We wouldn’t be where we are today without your support and do not for a second take your lending with Zopa for granted.
We hope you appreciate that we cannot disclose any details of any institutional agreement, other than what is made public just as we cannot discuss your individual lending account details with other members.
Today’s news does not mean that retail lenders are less important to Zopa, quite the opposite as our team is determined to make Zopa the best lending experience for retail lenders in the UK. As such, we have shared some new developments via the blog which will address some issues that have been raised to us by customers.
If you have any questions or comments please do let us know and our customer team will be able to answer any concerns.