Zopa says ‘over the previous few years, buyer belief in P2P investing has been broken by?a small quantity?of?companies?whose method led to materials losses for retail buyers. Linked to this, the altering regulation which adopted raised the operational prices of operating a P2P enterprise, in addition to the price of attracting new buyers to the Zopa platform. To offset these elevated prices and guarantee now we have a sustainable and worthwhile enterprise, we’d want to scale back investor returns to a degree the place they’d not be enticing and commensurate with the danger that buyers tackle.’
The final step: ‘By 31 January 2022 our buyers will obtain the total worth of their invested balances of their Zopa holding accounts. Which means no investor will miss out on any of the curiosity they’ve already constructed up. There will probably be no influence on debtors as Zopa Financial institution already companies them and their loans will proceed unimpacted.’
Zopa has lent over 6 billion GBP in p2p lending loans. In 2016 it utilized for a banking license which it obtained in 2019.
A number of different UK p2p lending firms took related steps earlier and closed their platforms for retail buyers and focussed on institutinal buyers.