By Oliver Smith on Thursday 28 October 2021
A win-win as Zopa seeks broader exposure while Tesco uses its brand to stay in the market.
Supermarket giant Tesco and neobank Zopa are working together on a new hire purchase car finance product.
“Zopa’s digital-first products and market expertise combined with Tesco Bank’s brand strength continues our mission to bring car financing into the twenty-first century,” said Tim Waterman, Zopa’s chief commercial officer.
“By teaming up we’re making it easy for consumers who don’t yet know Zopa to access digitally native, industry-leading products adapted to their needs, reaffirming our unwavering commitment to great customer experience.”
Indeed, while Zopa has a decent customer base of around 500,000, Tesco Bank dwarfs the neobank with over 5 million UK customers across its banking, insurance and money services.
The tie-up is also likely strategic for Tesco Bank which, like several other supermarket banks, is in the process of closing down its current account offering next month and realigning its focus on certain products including car financing.
“We want to help those customers where a Tesco Bank personal loan doesn’t work for them to find more great value car finance options,” explained Tesco Bank’s chief customer officer Sigga Sigurdardottir.
“That’s why we’re delighted to team up with Zopa to make this happen.”