U.K. online lender Zopa seeks a banking license in a rare move for the peer-to-peer lending sector. The move would help it diversify its sources of funding. Once regulated, it will be able to take deposits.
The lender reached profitability in September this year, after four year of being unprofitable and 11 years of being in business. It has helped to arrange loans or more than £1.8bn during that time. However, a spokesman for Zopa said it expected to make losses during the bank setup. "We don't think we will remain profitable as the banking application requires a lot of capital investment, but we have got a very stable business and have proven we are able to attain profitability. Once we have launched we plan to return to profitability very quickly," the spokesman said.