Giles Andrews, founder, Zopa
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Zopa: customers 'know where money goes'

Can newer firms provide cost-efficient services that traditional lenders do not offer? Giles Andrews, founder of Zopa, a peer-to-peer lender, says his business model relies on efficiency to be cheaper.

"Customers know where their money is going" and it goes to "lots and lots of people" to spread risk, he says. His business gathers data about borrowers to price the loans, he says.

"We were inspired by what eBay had done to retail," he says. "We thought well, that was a really interesting inspiration, let's see if we can apply similar technology to the world of lending and borrowing."

But comparing them with a bank directly is hard. They don't have as much capital as traditional banks, as he says that regulators don't require it.

  • 28 Mar 2016