Zopa Restricts Funds on its Platform

By Jordan Stodart | On December 6th, 2016
Peer-to-peer lending giant and industry creator, Zopa, has announced that it will be placing a limit on funds accepted onto its consumer-lending platform.
The matching process in P2P lending is a finely balanced one, where approving borrowers and then lending capital must operate at a certain rhythm and fluidity.  With Zopa, it can take up to five days before money is matched to loans. This is due to queued funds on the platform, which is always a possibility in peer-to-peer lending due to the illiquid nature of the asset class.
Zopa expects a slow month in December due to queued funds and has therefore imposed a temporary halt on new money transfers. It has, however, been made clear to Zopa investors that the limit could be reapplied in the future if ‘longer lending speeds’ are experienced.
Zopa’s move comes in an effort to provide fairness to those who shouldn’t have to wait too long for their money to be lent out, explains Zopa:
“We believe money should be simple and fair. We don’t think it’s fair for you to wait too long to lend out your money.”
For those with money on Zopa, don’t be too concerned. For any funds currently on the platform, lent or not, the capital will not be affected. This is for new money transfers only:
“We are not accepting any new money transfers. Any new money transfers into the platform will be refunded directly to your bank account.”
Visit Zopa Website
2016 has been a year of landmark changes for Zopa, including a securitization and new branding – new website launched this week – but this restriction may come as a surprise to investors.

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