One of Zopa's core strengths lies in its technological prowess. The company has heavily invested in AI and machine learning to enhance its credit risk assessment, ensuring competitive loan rates while maintaining low default rates. Furthermore, Zopa's customer-centric approach and streamlined digital processes offer a seamless banking experience, which has garnered high customer satisfaction scores. Another notable strength is its strong regulatory compliance within the UK financial sector, ensuring trust and reliability.

Despite its innovative edge, Zopa faces challenges with scale. Being a relatively new entrant in the digital banking space, it lacks the extensive network and brand recognition enjoyed by traditional banks. Additionally, its focus on unsecured personal loans and credit cards can be considered a limitation, as it is more exposed to credit risk during economic downturns. Zopa's reliance on digital channels also makes it susceptible to cybersecurity threats.

Zopa has significant growth opportunities, particularly in expanding its product range and market outreach. Diversifying into areas like mortgage lending or business loans could enhance its portfolio and reduce reliance on personal lending. International expansion is another lucrative frontier, given the digital nature of its services. Strategic partnerships with fintech innovators could also aid in developing new, disruptive financial products.

One of the primary threats to Zopa is the intense competition in the fintech and digital banking sector. Giants like Revolut, Monzo, and traditional banks entering the digital space pose significant challenges. Additionally, regulatory changes can impact Zopa's operations and profitability. Lastly, economic uncertainties and crises could impact consumer creditworthiness, affecting the company's core lending business.

In the past two years, Zopa has achieved significant milestones. Firstly, in June 2020, Zopa successfully obtained its full banking licence, enabling it to offer a broader range of services and marking a pivotal shift from its peer-to-peer lending roots. Secondly, in December 2021, Zopa raised £220 million in a funding round led by SoftBank, underscoring investor confidence and providing substantial capital to fuel its growth ambitions, including potential international expansion and technological advancements.