Zopa offers an alternative for high-risk borrowers

Savers wanting to earn a good rate of interest while avoiding high street banks now have an alternative option.

Zopa matches up people who have spare cash to lend with those who want to borrow money.

John Hudson, professor of economics at Bath University, hailed Zopa as “a new way of borrowing and lending money”.

Zopa “shows what can be done when you take customer insight really seriously, are very focused on a vision and strategy and approach everything with a ‘can do’ attitude,” he added.

Sara Parkin, founder and director of Forum for the Future, said Zopa helps to “mobilise money”.

“It offers an alternative for those who want to get involved but may be a bit reluctant to do it through government or in any other way,” she said.

Zopa provides system where customers can build up trust with one another, she added.

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