UK online peer-to-peer (P2P) lender Zopa has raised £44m to fund the launch of its new digital challenger bank.

The new capital is being raised from existing Zopa investors.

The fintech company applied for banking license in 2016.

The new digital bank will offer FSCS-protected deposit accounts and investment products such as IFISAs for investors.

Car finance and credit cards

Additionally Zopa’s digital challenger bank will offer personal loans, car finance, and credit cards.

The latest round comes after a £32m fund collection in June 2017,  led by Indian financial services group Wadhawan Global Capital (WGC) and European venture capital fund Northzone.

Soon after that, it also established a development centre in Barcelona, Spain to support the launch of its bank.

Zopa CEO Jaidev Janardana said: “We aim to be the best place for money in the UK. We believe that launching our bank is a key next step. It allows us to offer a wider choice of products and to help our customers make smarter choices with their money.

“This further injection of capital takes us a step closer to that vision. We are delighted that our investors have supported us on this journey.”

Zopa enjoyed a strong fiscal 2017 with revenue of £46.5m up 40% year-on-year.

For fiscal 2017 it reported a net profit of £1.5m.