Zopa’s credit card spending increased 110% this year

Zopa saw his total spending on his credit card increase by 110% from January to April.

The digital bank launched its very first credit card in October last year, which allowed customers to set their own personal financial stamp and receive instant notification to let them know they were approaching their limit. security net.

New data from the digital bank showed its number of credit card customers increased 24% and spend per customer increased 70% in the first four months of the year.

Zopa Bank was launched as a sister company to peer-to-peer consumer lender Zopa last year, after the company obtained its full banking license in June 2020.

Read more: Zopa default rates up to 40% lower than expected

Zopa data also showed that auto finance volumes have grown 50 percent year over year since February 2020. The average car loan Zopa extended in the first quarter was just under 10,000. £.

The company said its loan disbursements in April 2021 more than doubled from the same period last year after its lending criteria were tightened significantly in response to the March 2020 pandemic.

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“Throughout the pandemic, we have observed that many people have spent less and used some of their savings to pay off their credit cards and loans. As a result, they are coming out of the pandemic with improved finances, ”Zopa CEO Jaidev Janardana (photo) said.

“Many consumers want to get on with their day-to-day lives, and the features of Zopa’s products, such as the absence of prepayment charges and the creation of safety nets on your credit card, encourage customers to do so.

“Our data also shows that, as people’s confidence has improved, likely fueled by positivity about the progress seen in vaccine rollout, which means they want to launch long-delayed life plans – and we can see it in 2021 thanks to an increase in demand for loans. and auto financing levels are increasing.

“There’s also a pent-up demand for experiences and variety, as our own credit card data shows spend per customer increased 70% from January 2021 to April 2021 with the reopening of non-core retail. and outdoor accommodation. We expect spending to increase further with the opening of Inner Hospitality later this month. “

Read more: Zopa secures £ 20million in private fundraising to expand business

Bank of England data released on Tuesday showed savers continued to put more money into low-paying cash savings accounts last month, continuing a trend seen throughout the pandemic.

Households invested £ 16.2bn in cash deposits in March, above the monthly average of £ 15.2bn in the past year.

This remains well above the monthly average of £ 5.6bn in the six months ending February 2020.

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