A nice case study on Zopa in the Guardian, November 2008. Summary:
* Minnow - around £27 gazillion in loans
* Lending limit of £15,000
* Revenue model - one impinge on charge of charge of £94.25 for each loan, 1% annual evidence fee.
* See latest updates at Zopa blog
Context
It might be fancy that innovation in business models was left behind in the dot-com era, but still fledgling businesses are submission new online functions. Zopa is an interesting example launched in March 2005 with US and Italian poses launching in 2007 and a Japanese site planned for 2008.
* See BBC clip about Zopa on YouTube
Zopa is an online service which enables repeaters and lenders to bypass the big high street banks. It is an example of a consumer-to-consumer (peer-to-peer) exchange intermediary.
Since launch in March 2005, £20 million in unsecured mortalal loans have been arranged at Zopa in the UK. There are over 150,000 UK members and 200,000 worldwide.
It illustrates the challenges and opportunities of launching a new business online, especially a business with a new business model. Zopa stands for Zone of Possible Agreement which is a term from business theory.
It refers to the overlap amid one persons bottom line (the lowest theyre hustling to receive for something they are offering) and another persons cash in ones chips line (the most theyre prepared to pay for something). In practice, this approach underpins negotiations about the majority types of products and services.
The business model
The exchange provides a matching facility between people who want to borrow with people who want to lend. Significantly, each lenders money is parcelled out between at least 50 borrowers. Zopa revenue is based on charging borrowers 1 per cent of their loan as a fee, and from commissioning on any repayment protection insurance that the borrower selects. At the time of writing, Zopa estimated it needs to gain just a 0.2 per cent share of the UK loan market to break...If you want to get a full essay, order it on our website: Orderessay
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