Zopa has secured £140 million in funding, enabling it to meet the regulatory capital requirements required to make its long-planned move into banking.

Sky News reported that an entity linked to US venture fund IAG Capital Partners and its UK investment vehicle Silverstripe is on the verge of taking a majority stake in the UK peer-to-peer lending firm.

The expected funding comes days before Zopa's restricted banking license expires, a year after being granted.

This time last year, Zopa agreed £60 million in funding for the banking build-out, paving the way for a new suite of financial products built on proprietary technology.

Zopa chief executive Jaidev Janardana commented: “This new funding means we have concluded the fundraising phase of our bank mobilisation - definitive agreements to provide the funding have been finalised and are subject to final approvals including regulatory change of control.

“We continue to hold our bank licence with restrictions and are working closely with the regulators to gain our full licence," he continued. "We are excited that once approved, Zopa will be able to launch its bank alongside its peer-to-peer business and offer a broader set of products to our customers.”

Just last month, Zopa launched a trial of a fixed-term savings account - currently in beta stage with existing customers - which it said marks a significant step on the journey to becoming a fully-fledged challenger bank.

Earlier this year, the company appointed former Virgin chief executive Gordon McCallum to the role of chairman.

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