UK's P2P platform $Zopa
has announced the closure of their retail investing business.
Zopa Bank will be buying the P2P loan portfolio and investors will receive their investment balances back by the end of January.
As reasons for the closure Zopa mentions that customer trust in P2P investing has been damaged by some other businesses whose approach led to losses for investors. They add that the changing regulation has increased the operational costs of running the business and attracting new investors. ''To offset these increased costs and ensure we have a sustainable and profitable business, we’d need to reduce investor returns to a point where they’d no longer be attractive and commensurate with the risk that investors take on.''