What is Zopa?
All of us struggle to be as financially stable as possible in our lives. However, some situations which are out of our control demand a more significant amount of money than what we can collect at the time. The immediate solution that might spring up in our heads is a loan. But the troubles that you need to go through for the processing of a loan can be frustrating in the time of need. You have to spend a lot of time and effort to get the documents made and approved. Read on to know about Zopa which makes the entire process a lot easier for you.
The loan services of a bank are only available during their working hours. When the necessities arrive on such short notice, this choice may not always be feasible. Companies like Zopa help you find the necessary funds as and when you need it. Zopa (1) is the first and leading peer-to-peer lending company in the United Kingdom. It was founded in March 2005 by Giles Andrews, James Alexander, Richard Duvall, David Nicholson and Tim Parlett. The current Chief Executive Officer of Zopa is Jaidev Janardana.
The aim of Zopa is to evade the inconvenience and high charges made by the banks on their customers. Through Zopa, you can lend and borrow money directly with other people without the involvement of banks. You can get Zopa loans at better value through simple procedures. Along with the peer-to-peer lending business, Zopa had also initiated a licensed bank as a part of the company. The Zopa Banks helps to provide further financial aids and services to their customers.
The features of Zopa
The best part about Zopa is they give you a fair deal without any discrimination. There are no special or exclusive offers for specific customers. Every client who completes the Zopa login is considered equal by them. Zopa believes that their success lies in the prosperity of their clients. Dealing with your cash is no problem at all with the help of Zopa loan. They provide many convenient devices to assist you in completing the procedures. They will also assign beneficial individuals to converse with when you have to.
There are various other reasons that make Zopa a reliable money lending platform. Zopa is managed by the Office of Fair Trading. In 2014, many buyer credit companies, including p2p lending business, started to be governed by the Financial Conduct Authority. Zopa, as well as companies like Ratesetter and Funding Circle, had campaigned the administration for setting more guidelines in their realm to help and secure buyers. Therefore, Zopa was more than happy to welcome this rule. Since December 2018, the FCA has regulated Zopa as a bank.
Similarly, Zopa truly sticks to the necessities set by the Prudential Regulation Authority. It is one of the heirs of the Financial Services Authority (FSA). The Bank of England controls the PRA, and it is intended to guarantee the soundness of the financial network in the United Kingdom. Moreover, The team of Zopa does not settle with just being mediocre. They try to understand what their clients need and change with their requirements. Zopa has built the platform in such a way that it can be developed effectively. Zopa also utilises the most modern technology to give you an extraordinary encounter.
The current crisis in this business
Because of the pandemic circumstance, the United Kingdom’s peer-to-peer loan industry is experiencing probably the most significant test. COVID-19 could mean an enormous number of firms leaving the business. Zopa, which spearheads this industry, is conceivably influenced by changes in the worldwide economy. As a purchaser moneylender, it is a co-dependent business and is therefore connected to the monetary reforms of the extensive economy. It is also subject to the changing needs for loans from the retail and institutional speculators at the same time.
With the COVID-19 emergency rising into the economy, the P2P loan specialists are confronting a considerable challenge. There has been a sequence of tests that have put disruptors at the centre of attention. The reality around the world implies that the entire business will have to go through a trial. The peer-to-peer loan business is especially experiencing a critical point in time. A lot of uncertainties have arisen regarding what will happen to a portion of their rivals in this sector.
As of now, no one can predict whether at least a few of these companies can endure these difficulties. If they do survive and convey great client results that can be a gigantic evidence point later on. However, if only a couple of enterprises can do that and not a more significant number, it can have an adverse result too. It might make the clients doubt, and question and that may stunt the development of the business in the coming years.
The future for Zopa
To a great extent, Zopa has been able to provide the same old service even amidst the crisis. They have been able to extend assistance to both the lenders and borrowers. They have kept on loaning, kept on pulling in new borrowers, and joining new financial specialists. Zopa has satisfactorily overseen their tasks throughout this emergency. In particular, Zopa should be specially praised for maintaining the same responsibility in product proposition to the clients and the accessibility to their services.
Furthermore, not many companies in the same sector have been able to hold on like Zopa. They have realised that recent events in this business will determine how clients are going to perceive this area. With the way things are going, there are various possibilities ahead. It could either show the critics the disadvantages of the peer-to-peer lending business or turn out to be proof for the stability of these organisations. Zopa is confident that their undertakings will perform on a far superior level than numerous other financial resources.
However, the plans regarding the post-COVID situation is yet an uncertain factor for Zopa. You can never predict how the lenders will experience budgetary returns. Even with the crisis, Zopa needs to make sure that they have access to their money whenever they need it. The smallest improvements and efforts can decide how the customers of Zopa will remain loyal in the future.