Digital lender Zopa expands to Manchester in British banking push

LONDON (Reuters) -Digital bank Zopa is expanding to the northern English city of Manchester, where it could eventually house up to 500 staff, it said on Friday, as it continues its push to take on incumbent traditional banks such as HSBC and Barclays.

Across Europe, competitive pressure has increased in banking and a series of takeovers of mid-sized banks has taken place as players fight for scale. In the latest deal, Spanish lender Santander has said it is set to buy Britain's TSB.

Zopa, which began as a peer-to-peer lender before shifting focus to banking in 2021, last month launched a suite of bank account products. They include a savings account that pays a market-beating 7.1%, as it tries to grab market share from the traditional players that dominate the market.

Zopa will launch its Manchester office in August with initial capacity for 50 staff, it said, as it seeks to increase its current 1.5 million customers and 5.5 billion pounds in deposits.

(Reporting By Lawrence White; editing by Barbara Lewis)