UK-based digital bank Zopa has officially entered the current account market, introducing its new “Biscuit” account and setting a target of five million users within the next three years.
The Biscuit account offers customers 2% annual equivalent rate (AER) on all balances, 2 % cash back on bills (up to GBP 1,500 annually), a high-yield Regular Saver at 7.1 % AER (on up to GBP 300 monthly), fee-free international spending, and instant virtual cards—intended to compete directly with current offerings from digital banks like Monzo, Starling, and Revolut.
Zopa CEO Jaidev Janardana stated: “Stepping into everyday banking is a natural next step in Zopa’s mission to build the Home of Money for its customers. We believe that British consumers deserve better than having to constantly chase deals and accept complexity or poor experience.” He added this vision in Zopa’s press release announcing the public launch of Biscuit.
Zopa enters a crowded digital banking landscape: Monzo has surpassed 12 million customers, Starling recently crossed the five million mark, and Revolut maintains a strong European presence. However, Zopa benefits from being a fully licensed UK bank, holding customer deposits under the Financial Services Compensation Scheme (FSCS), and reporting deposits over GBP 5 billion alongside a loan book of approximately GBP 3 billion.
Regulatory and financial footing
After receiving its full UK banking license in 2020, Zopa has posted two consecutive profitable years—as of December 2024, pre-tax profit stood around GBP 34 million, with revenue rising over 30 % to roughly GBP 303 million.
In December, Zopa raised EUR 80 million from investors including A.P. Moller Holding, supporting its expansion into current accounts and future product development.
Regulators including the Financial Conduct Authority and Prudential Regulation Authority have recently increased scrutiny on neobank resilience, focusing on liquidity, compliance, and customer protection measures—especially amid rapid scale-ups. Zopa has met these standards through steady growth and strong risk controls.
According to EU banking data, over 11 million UK customers now hold digital-only current accounts, a significant increase from five million in 2020. If Zopa achieves its goal, it would rank among the top three digital account providers.
Whether Zopa can convert its loyal base into current account customers remains uncertain. The bank has until mid‑2028 to secure five million sign‑ups and prove its ability to compete on value, product integration, and regulatory solidity in the full-service digital banking space.
