Personal Finance Tips

Zopa Bank – How safe is it?

Gert Svaiko

15.01.24 (updated more than 1 year ago)

Read time 2 minutes

Thinking of opening a savings account or getting a credit card with Zopa Bank? When using any new bank or financial service, it’s always wise to check out security first. You need to make sure that your money, account and personal information will be fully protected.

In this guide, we’ll run through everything you need to know about safety and security with Zopa Bank in the UK. This includes regulation, app security measures and the reputation of the bank. It’s all so that you can make an informed decision.

And if you’re shopping around for a new account, make sure to check out the Wise account from the money services provider Wise. It’s not a bank account but offers many similar features. It lets you send, spend, and convert money in 40+ currencies*, and you can get a Wise card for everyday spending in the UK and abroad.

How safe is Zopa Bank?

The first thing to know about Zopa Bank is that it is regulated by both the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) in the UK.¹

If you open a savings account with Zopa, your money is protected up to £85,000 under the Financial Services Compensation Scheme (FSCS).¹ This means you’re covered up to that amount just in case Zopa should go into administration.

What’s more, Zopa is a member of Cifas, the UK’s leading anti-fraud association, and is registered with the Office of the Information Commissioner.¹

Is Zopa Bank’s app safe to use?

Zopa’s accounts and products are primarily managed via a mobile app, like many UK banks these days. But how safe is it?

Here are some things you need to know:²

Access to your account via the app is protected using a secure pin, or Face ID/Touch ID. This is to make sure it’s definitely you trying to access it.²
You can upgrade app security by setting up an extra layer of verification. This will mean that Zopa will text you a verification code every time you log in.³

Is Zopa Bank reputable and reliable?

Zopa Bank has a pretty good reputation with current and previous customers. It has an ‘Excellent’ rating of 4.5 over on TrustPilot, based on over 22,000 customer reviews.⁴

The bank has also won some awards, including:⁵

Banking Brand of the Year at the MoneyNet Awards 2022
Best New Savings Provider, Best Fixed Rate Bond Provider and Best Short Term Fixed Rate Bond Provider at the Savings Champion Awards 2022.

Does banking with Zopa Bank affect your credit rating?

If you’re interested in taking out a loan or credit card with Zopa Bank, it will carry out an initial eligibility check, involving a ‘soft’ credit search.⁶ This is to check whether you’re likely to be accepted, based on information provided by a credit reference agency.

However, a soft credit search does not show up on your credit report and doesn’t affect your credit rating. It’s only when you actually submit your final application that Zopa Bank will carry out a ‘hard’ credit search⁶ - this can affect your credit score. This is common when applying for credit cards.

Zopa doesn’t say whether it carries out a credit check when you apply for a savings account. If this is a concern, you will need to contact the bank before applying.

📚 Read more: UK travel credit cards you can use abroad

And that’s it - everything you need to know about security and safety with Zopa Bank.

It’s a pretty safe bet, as it’s FCA regulated, uses sophisticated app security and offers FSCS protection for your money. And customers like it, as the bank has an ‘Excellent’ score on review sites like TrustPilot.

You can make up your own mind whether Zopa is right for you. But after reading this, you should have a little more info to base your decision on.

Sources used for this article:

Zopa - Contact
Zopa - Help - How do I download the Zopa app?
Zopa - Upgrading your security
TrustPilot - Zopa.com
Zopa - Awards
Zopa - Help - What’s a soft credit search?

Sources checked on 22-Nov-2023.

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.