Zopa

Zopa’s New Launch Gives Consumers the Best Rate

Zopa’s New Launch Gives Consumers the Best Rate
By Julie Muhn (@julieschicktanz) Posted on
Categories: Zopa

P2P lending company and challenger bank Zopa announced something consumers can feel good about this week. The U.K.-based company, which brands itself as the FeelGood Money company, launched a tool to help borrowers find the best rate for their loan.

The new tool, Borrowing Power, leverages AI to show users what makes up their personal borrowing power and guide them toward actions to help improve it. Each score is linked to a Zopa loan and shows the user their eligibility and rate. Borrowing Power also shows users what-if scenarios– that is, how their rate may increase if they take certain actions to improve their score. Ultimately, the tool has the potential to positively impact consumers’ financial behavior.

“Customers deserve to know their eligibility for credit, current credit scoring is merely scratching the surface,” said Zopa CPO Didier Baclin. “We have effectively broken open the black box to understand what is going on and, combining this data with additional information about the customer, are able to give bespoke actionable insights to our customers that could enable them to improve their credit risk in a short time frame and then ultimately be able to borrow from Zopa at a better rate.”

The Borrowing Power score, which ranges from one to 10, is simpler than a credit score. The score is comprised of only five elements:

  • Combination of credit rating data
  • Credit utilization
  • Credit limits
  • Hard searches
  • Affordability based on personal circumstances

Zopa leverages this data to inform consumers if they can improve an aspect of their credit profile, and in what time period. The company makes it easy for borrowers to understand the loan by showing them the actual interest rate. And, making the score as consumer-friendly as possible, Zopa only uses a soft credit inquiry so that it doesn’t impact their credit score until the loan is official.

Zopa was founded in 2005, pioneering peer-to-peer lending in the U.K., and has since amassed more than 400,000 customers and facilitated $5+ billion (£4+ billion) on its platform.

Last December Zopa made fintech headlines by launching its new bank in beta. The company is currently operating the bank in a period called AWR (authorization with restrictions), meaning it has met all of the FCA’s conditions and is allowed to begin testing the new banking products.

Zopa’s former CEO Doug Dolton debuted the P2P lending platform at FinovateSpring 2008 at Finovate’s very first show in the Bay Area.

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Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on
Categories: Alkami Technology, Currency Cloud, EVRY, ProfitStars, Q2, Q2 Holdings, Q2ebanking, Stratifyd, Taulia, The Currency Cloud, Tradeshift, Zopa

On Finovate.com

  • Zopa’s New Launch Gives Consumers the Best Rate.

Around the web

  • Tieto and EVRY announce operating structure for TietoEVRY after $1.5 billion acquisition.
  • Taulia launches AI-powered cash forecasting solution.
  • Tradeshift to power digital transformation for Abreon.
  • Q2 named a winner in the 2020 CSO50 Awards for Q2 TrustView.
  • Washington credit union iQ to leverage Alkami to create a personalized user experience.
  • Stratifyd named among Chralotte’s best places to work.
  • ProfitStars brings mobile remote deposit to ICBA member banks.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on
Categories: Aire, Bpm'online, Finn.ai, Green Dot, Gusto, IBM, Kofax, PayNearMe, Revolut, Ripple, SumUp, Token, Top Image Systems, Tradeshift, Trustly, Zopa

On Finovate.com

  • Gusto Teams with Trainual to Automate Job Role Training.
  • Finovate Global: Finn AI Powers Chatbots in South Africa; Token Drives Open Banking in MENA.

Around the web

  • Green Dot helps Walmart customers move more than $2 billion through the program’s virtual Vault savings program.
  • Top Image Systems shareholders approve acquisition by Kofax.
  • BuyerQuest joins the Tradeshift platform as an app partner.
  • American Banker highlights how PayNearMe helps marginalized cash users partake in ecommerce.
  • Trustly grows to 300 employees.
  • Silicon Canals features SumUp, Aire, Revolut, and Zopa in its list of top fintech companies to work for in London.
  • Ripple, IBM, SWIFT and nearly 100 other organizations launch the International Association of Trusted Blockchain Applications (INATBA).
  • Forrester Research recognizes bpm’online as a “strong performer” in digital process automation for wide deployments in Q1 of this year.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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Finovate Alumni News

By David Penn Posted on
Categories: Klarna, Qover, Zopa

Around the web

  • Zopa surpasses £4 billion lending milestone.
  • EU Startups features Qover in its list of 10 Belgian startups to watch out for in 2019.
  • Gymshark customers in the U.K. and the Nordics now have access to Klarna’s Pay Later service.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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Zopa’s New Bank Launches in Beta

Zopa’s New Bank Launches in Beta
By Julie Muhn (@julieschicktanz) Posted on
Categories: Zopa

Just over two years ago, P2P lending company Zopa announced its plans to launch a challenger bank. Today, the U.K.-based company announced it received authorization from the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).

Zopa is currently operating in a period called AWR (authorization with restrictions), meaning it has met all of the FCA’s conditions and is allowed to begin testing the new banking products. The company will use its own staff to serve as the beta testers for the new banking products.

There is no word yet on when the restricted period will be lifted to allow Zopa to fully launch, but when it does, it will offer savings accounts and credit cards that can be managed within a new mobile app. The app will offer money management tools that help place customers in control of their finances by showing all of their accounts in a single place.

To position itself as more user friendly than traditional banks, the company is branding itself as the Feelgood Money company. Backing this ideal, Zopa is avoiding hidden fees and promising to have “helpful humans” on the other end of customer service calls.

“This is a huge milestone for Zopa as we are now the world’s first combined peer-to-peer lender and digital bank,” said Zopa CEO Jaidev Janardana. “It also brings us one step closer to being the best place for money in the U.K. by offering a broader selection of personal finance products.” Janardana discusses what’s next for Zopa in the video below:

Zopa was founded in 2005, pioneering peer-to-peer lending in the U.K., and has since amassed 400,000 customers and  facilitated $5 billion (£4 billion) on its platform. The company plans to continue to grow its peer-to-peer platform, which will run alongside Zopa’s bank offerings.

Zopa’s former CEO Doug Dolton debuted the P2P lending platform at FinovateSpring 2008 at Finovate’s very first show in the Bay Area. Last month, the company added $20.7 million to its Series G funding round, bringing its total funding to more than $77 million. Earlier this fall, Zopa earned recognition on the Inc. 5,000, ranking 1,314.

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Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on
Categories: Backbase, Darwinex, SWITCH, Thought Machine, TransferWise, Zopa

On Finovate.com 

  • Backbase Powers OmniChannel Digital Services for BGŻ BNP Paribas Bank.
  • Switch Granted $2 Million in Funding.

Around the web

  • IBM partners with Thought Machine for legacy systems.
  • TransferWise introduces its borderless account – with a debit card – to Ireland.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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Zopa Seals Series G Investment En Route to Bank Launch

Zopa Seals Series G Investment En Route to Bank Launch
By David Penn Posted on
Categories: Funding, Zopa

U.K.-based P2P lender Zopa added another $20.7 million (£16 million) to its latest Series G investment round this week. The company has built upon its $57 million (£ 44 million) August fundraising and now has more than $77 million (£60 million) in new capital to pursue its current objective: building a bank.

“This new funding takes us a step closer to realising our vision of being the best place for money in the U.K.,” Zopa CEO Jaidev Janardana said. “Having served half a million customers to date, Zopa is set to redefine the finance industry once again through our next generation bank to meet a broader set of U.K. customers’ financial needs.”

Participating in the Series G were Bessemer Venture Partners, Northzone, Augmentum Capital, and Wadhawan Global Capital. Zopa’s total funding is $190.2 million (£152.9 million).

The round was the largest yet for the innovative peer-to-peer lender, which applied for a banking license in 2016. The company noted at the time that the application process can take between 15 months and two years – making this week’s investment and the company’s return to profitability for the first time since 2012 timely news for Zopa.

“2017 was a landmark for us,” Janardana said in a statement this summer, reporting the company’s good financial fortunes. In addition to revenue gains of 40% and a 43% increase in funds loaned, Zopa earned full FCA authorization last year – the first major P2P lender to do so. This enabled the company to launch its Innovative Finance ISA, bringing the tax efficiency of ISAs to P2P investments.

Zopa’s digital bank, which the company says it expects to launch “soon,” will initially offer FSCS-backed savings accounts and P2P investments such as ISAs, as well as credit cards, personal loans, and auto financing. Janardana told the Independent in October that he hoped to reduce the stress for people trying to manage their finances and “extend the ethos of peer-to-peer into retail banking.”

One of Finovate’s earliest alums, Zopa demonstrated its technology at FinovateSpring 2008. Janardana, along with the company’s board chairwoman, Christine Farnish, was named to the Peer2Peer Finance News Power 50’s Top 10 earlier this month. Zopa has lent more than £3.78 billion to customers in the U.K., with more than 60,000 active individual investors and more than 311,000 borrowers approved via the company’s platform.

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Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on
Categories: Avaloq, Cardlytics, eToro, Green Dot, LENDindex, Meniga, Privakey, TransferWise, Zopa

On Finovate.com

  • eToro Launches GoodDollar to Reduce Income Inequality.
  • Zopa Seals Series G Investment En Route to Bank Launch.

Around the web

  • Privakey partners with FIDO board member Raonsecure to deliver joint solution to North America.
  • Green Dot reports record Q3 revenue of $230.6 million, up 14% from $201.6 million in Q3 2017.
  • Cardlytics expands U.S. Travel and Entertainment division with new appointment.
  • UOB’s Digital Bank advances customer-centric data solutions with Meniga.
  • Avaloq appoints Martin Greweldinger as Group Chief Product Officer.
  • LENDindex adds Centre’s USDC digital currency to its SME loan portfolio.
  • TransferWise secures £65 million syndicated debt facility with NatWest, JP Morgan, and LHV Bank.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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Finovate Alumni News

By David Penn Posted on
Categories: Chain.com, Green Key Technologies, Kasasa, LendingTree, Temenos, TransferWise, Zopa

On Finovate.com

  • Chain Rebrands to Interstellar Following Acquisition.
  • Kasasa Unveils New Compliance Solution, RegGen.

Around the web

  • GreenKey and IPC add new co-development agreement to their partnership.
  • TransferWise announces its second profitable year amid annual revenue growth of more than 75%.
  • Praxia Bank of Greece to leverage Temenos‘ T24 core banking system to support its SME lending business.
  • TechCrunch: LendingTree is the secret success story of fintech.
  • Zopa listed for 5th consecutive year in The Sunday Times Tech Track 100.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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Highlights of This Year’s Inc. 5000

Highlights of This Year’s Inc. 5000
By Julie Muhn (@julieschicktanz) Posted on
Categories: Acuity Systems, Alkami Technology, CardFlight, Cardlytics, Comarch, defi Solutions, Emailage, Featurespace, Feedzai, Fenergo, Finastra, HelpMyCash, Innofis, Interactions, Kalixa, Kantox, Lighter Capital, Passport, Quadient, SeedInvest, SumUp, Tango Card, True Potential, Trustly, Unison, VATBox, WealthForge, Zopa

Inc. has once again released its lists of the fastest-growing 5,000 private companies in the U.S. and Europe this week. A total of 13 Finovate alums made the U.S. list and 14 earned spots on the Europe list. To qualify*, companies were required to be privately-owned and independent.

Inc. 5,000 U.S.

The 5,000 companies on this year’s list collectively generated more than $206 billion in revenue. Here are the 13 Finovate alums that made the cut this year:

SeedInvest

  • Rank: 117
  • 2017 revenue: $4.7 million
  • 3-year growth: 33.8x
  • Founded: 2013
  • Employees: 30
  • Ranked number 4 in top financial services companies

SeedInvest demoed at FinovateSpring 2013.

Cardflight

  • Rank: 139
  • 2017 revenue: $5.1 million
  • 3-year growth: 29x
  • Founded: 2009
  • Employees: 192
  • Ranked number 5 in top financial services companies

CardFlight demoed at FinovateSpring 2013.

Alkami technology

  • Rank: 284
  • 2017 revenue: $26.8 million
  • 3-year growth: 17x
  • Founded: 2009
  • Employees: 299
  • Ranked number 10 in top Dallas companies

Alkami debuted under the name iThryv at FinovateSpring 2009.

Passport

  • Rank: 389
  • 2017 revenue: $12.3 million
  • 3-year growth: 12.6x
  • Founded: 2010
  • Employees: 96
  • Ranked number 4 in top Charlotte companies

Passport demoed at FinovateEurope 2016.

Emailage

  • Rank: 625
  • 2017 revenue: $16.6 million
  • 3-year growth: 8x
  • Founded: 2012
  • Employees: 79
  • Ranked number 6 in top security companies

Emailage demoed at FinovateSpring 2015.

Lighter Capital

  • Rank: 776
  • 2017 revenue: $11.9 million
  • 3-year growth: 6.5x
  • Founded: 2010
  • Employees: 39
  • Ranked number 11 in top Seattle companies

Lighter Capital demoed at FinovateFall 2013.

Tango Card

  • Rank: 912
  • 2017 revenue: $17 million
  • 3-year growth: 5.4x
  • Founded: 2009
  • Employees: 80
  • Ranked number 14 in top Seattle companies

Tango Card demoed at FinovateFall 2016.

WealthForge

  • Rank: 932
  • 2017 revenue: $8.9 million
  • 3-year growth: 5.3x
  • Founded: 2009
  • Employees: 29
  • Ranked number 6 in top Richmond, VA companies

WealthForge demoed at FinovateSpring 2016.

Unison

  • Rank: 1048
  • 2017 revenue: $2.3 million
  • 3-year growth: 4.7x
  • Founded: 2014
  • Employees: 10
  • Ranked number 4 in top Detroit companies

Unison demoed at FinovateFall 2017.

Acuity Systems

  • Rank: 1107
  • 2017 revenue: $12.6 million
  • 3-year growth: 4.5x
  • Founded: 2010
  • Employees: 26

Acuity Systems demoed at FinovateEurope 2013.

defi SOLUTIONS

  • Rank: 1176
  • 2017 revenue: $14.6 million
  • 3-year growth: 4.1x
  • Founded: 2012
  • Employees: 80

defi SOLUTIONS demoed at FinovateSpring 2014.

Interactions

  • Rank: 1550
  • 2017 revenue: $92.9 million
  • 3-year growth: 3x
  • Founded: 2004
  • Employees: 413

Interactions demoed at FinovateSpring 2014.

Cardlytics

  • Rank: 2886
  • 2017 revenue: $130.4 million
  • 3-year growth: 1.4x
  • Founded: 2008
  • Employees: 342

Cardlytics demoed at FinovateFall 2014. The company went public early this year.

Inc. 5,000 Europe

This is the fourth year in a row Inc. has ranked European countries. The rankings are based on three-year revenue growth. Here are the 14 Finovate alums that earned a spot on the list, including SumUp, which took the number one slot:

SumUp

  • Rank: 1
  • 2016 revenue: $63.7 million (€56 million)
  • 3-year growth: 143.7x
  • Founded 2011
  • Employees: 500

SumUp demoed at FinovateEurope 2013.

VATBox 

  • Rank: 91
  • 2016 revenue: $6.9 million (€6.1 million)
  • 3-year growth: 25x
  • Founded 2012
  • Employees: 140

VATBox demoed at FinovateEurope 2015.

Kantox 

  • Rank: 390
  • 2016 revenue: $4.9 million (€4.3 million)
  • 3-year growth: 12x
  • Founded 2011
  • Employees: 73

Kantox demoed at FinovateEurope 2013

HelpMyCash

  • Rank: 699
  • 2016 revenue: $2.96 million (€2.6 million)
  • 3-year growth: 8.3x
  • Founded 2007
  • Employees: 16

HelpMyCash demoed at FinovateEurope 2011.

Featurespace 

  • Rank: 901
  • 2016 revenue: $3.41 million (€3 million)
  • 3-year growth: 7x
  • Founded 2005
  • Employees: 62

Featurespace demoed at FinovateFall 2016.

Kalixa Payments 

  • Rank: 918
  • 2016 revenue: $42.3 million (€37.2 million)
  • 3-year growth: 7x
  • Founded 2008
  • Employees: 112

Kalixa demoed at FinovateEurope 2013.

Zopa

  • Rank: 1314
  • 2016 revenue: $46.3 million (€40.7 million)
  • 3-year growth: 5.4x
  • Founded 2004
  • Employees: 188

Zopa demoed at FinovateSpring 2008.

Feedzai

  • Rank: 1330
  • 2016 revenue: $13.8 million (€12.1 million)
  • 3-year growth: 5.4x
  • Founded 2008
  • Employees: 68

Feedzai demoed at FinovateEurope 2014.

Trustly

  • Rank: 1344
  • 2016 revenue: $36.7 million ( €32.3 million)
  • 3-year growth: 5.4x
  • Founded 2008
  • Employees: 83

Trustly demoed at FinovateEurope 2017.

Fenergo

  • Rank: 1882
  • 2016 revenue: $33.8 million ( €29.7 million)
  • 3-year growth: 3.8x
  • Founded 2012
  • Employees: 183

Fenergo demoed at FinovateEurope 2012.

Innofis

  • Rank: 2452
  • 2016 revenue: $8.2 million (€7.2 million)
  • 3-year growth: 2.6x
  • Founded 2012
  • Employees: 69

Innofis demoed at FinovateEurope 2016.

Quadient France 

  • Rank: 2966
  • 2016 revenue: $8.9 million (€7.8 million)
  • 3-year growth: 1.8x
  • Founded 2007
  • Employees: 21

Quadient demoed at FinovateEurope 2018.

True Potential

  • Rank: 3233
  • 2016 revenue: $88.5 million (€77.8 million)
  • 3-year growth: 1.5x
  • Founded 2007
  • Employees: 234

True Potential demoed at FinovateFall 2014.

Comarch

  • Rank: 4954
  • 2016 revenue: $35.6 million (€31.3 million)
  • 3-year growth: 59%
  • Founded 1978
  • Employees: 148

Comarch demoed at FinovateEurope 2017.

*Companies on the 2018 Inc. 5000 are ranked according to percentage revenue growth from 2014 to 2017. To qualify, companies must have been founded and generating revenue by March 31, 2014. They must be privately held, for-profit, and independent–not subsidiaries or divisions of other companies–as of December 31, 2017. (Since then, some on the list have gone public or been acquired.) The minimum revenue required for 2014 is $100,000; the minimum for 2017 is $2 million. As always, Inc. reserves the right to decline applicants for subjective reasons.

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Finovate Alumni News

By David Penn Posted on
Categories: Blend, Gusto, MicroStrategy, PasswordPing, RightCapital, TransUnion, Wonga, Xero, Zopa

On Finovate.com

  • Wonga Raises $13 Million in New Funding.
  • TransUnion Teams Up with EXL for CECL Compliance.
  • RightCapital Adds Student Loan Functionality to its Platform.

Around the web

  • PasswordPing wins Startup of the Year at 13th Annual 2018 IT World Awards. See PasswordPing at FinovateFall in New York next month.
  • Zopa to finance loans for CommuterClub season tickets, courtesy of a new partnership.
  • Xero announces integration with GoCardless.
  • PYMNTS.com profiles payroll, benefits, and HR platform, Gusto.
  • MicroStrategy appoints Marge Breya as Chief Marketing Officer.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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Zopa Raises More than $57 Million to Support Next Generation Bank

Zopa Raises More than $57 Million to Support Next Generation Bank
By David Penn Posted on
Categories: Funding, Zopa

P2P lending pioneer Zopa has raised more than $57 million in funding (£44 million) to support the launch of its challenger bank. The financing represents the first part of its current fundraising round, according to a post at the company blog, and comes amid reported strong growth for the sector and the company – including full-year profitability in Zopa’s P2P business in 2017.

The company’s intention to join the challenger bank revolution was signaled when it applied for a banking license in 2016. With growing concern from regulatory authorities such as the Financial Conduct Authority over the appropriateness of loan-based crowdfunding and P2P lending as an investment for average investors, adding retail deposits via a challenger bank would provide additional funding support for Zopa’s operations.

And while the bank would be initially limited to savings products like deposit accounts, Zopa expects credit and unsecured debt products to follow soon thereafter. “We aim to be the best place for money in the U.K. and we believe that launching our bank is a key next step,” Zopa CEO Jaidev Janardana said. “It allows us to offer a wider choice of products and to help our customers make smarter choices with their money.”

Named to the Financial Times’ FT 1000 list of Europe’s fastest growing companies, Zopa announced a major milestone in February, when its investor community lent its three billionth pound to U.K. customers. Re-opening to new investors at the beginning of the year, Zopa also started 2018 by beefing up its executive ranks. The company added new Chief Financial Officer, Steve Hulme; Chief Risk Officer, Phillip Dransfield; and Chief Customer Officer, Clare Gambardella.

London, U.K.-based Zopa has now raised a total of more than $169 million in funding. The company’s investors include Bessemer Venture Partners, Northzone, Augmentum Capital, and Wadhawan Global Capital. Zopa is one of Finovate’s earliest alums, having demonstrated its platform at FinovateSpring 2008.

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