Zopa in the current climate

jamesd

Zopa lenders lent out £2.2 million this month. That's twice Zopa's previous record. Good news for borrowers because the influx of cheap money has let borrowing continue to be at quite low prices for flexible loans. Not such good news for lenders, because rates have remained low. Very good news for Zopa itself, since it makes money as a percentage of the total money lent out and this should make it clearly profitable.

sdooley

I think zopa have a great system, I see my money with them as money I can afford to lose (that's why I kept it small).

I think the whole 'a new asset class' is overblown. But it's more transparent in terms of where your money is going than say investing in the listed bonds of a retail bank, which in principle should carry a similar risk/reward profile. What you gain in transparency however you lose in fungibility - if zopa grew it would be good to have a secondary market (as it stands I think that would be pointless).