Zopa Bank has become the first UK bank to receive regulatory approval to provide targeted support for investment customers, under a new FCA regime designed to give consumers more help without moving into full financial advice.

The British digital bank, which has around two million customers, plans to use customer data and behavioural insights to deliver tailored nudges and suggestions to investment customers, particularly those at the beginning of their investing journeys.

Targeted support sits between generic financial guidance and full regulated advice. Since 6 April 2026, banks, pension providers and other authorised financial firms with the relevant permission can provide suggestions designed for groups of consumers with common characteristics.

A new route between guidance and advice

The FCA introduced targeted support as part of wider work on the UK’s advice gap, where many consumers need more help with pensions and investments but do not access paid-for financial advice.

Unlike full financial advice, targeted support does not involve a personal recommendation based on a full assessment of someone’s individual circumstances. Instead, firms can identify groups of customers with shared traits and provide suggestions intended for that group.

For banks, pension providers and investment platforms, the regime opens a regulated way to contact customers who may need more than general education, but who are unlikely to seek traditional advice.

Zopa is not the first firm overall to receive targeted support permission. Royal London says it was the first business to receive regulatory permissions to launch a targeted support service, while Quilter also announced that it had received permission from the FCA to deliver targeted support.

Zopa says it is the first British bank among more than 350 banks and building societies in the UK to secure the new permission.

Zopa targets cash-heavy savers

Zopa is linking the permission to Zopa Investments, its investment product launched last year in partnership with Invesco.

The product is aimed at first-time investors and customers holding excess cash. Zopa says 15 million Brits are holding excess cash, and the bank plans to use the new permission to offer more tailored support to customers considering how to grow their money.

Zopa Investments currently offers two ready-made funds: Balanced and Bold. According to the bank, the funds delivered average annual returns of 4.5% and 9.3% respectively between 14 January 2021 and 30 September 2025. Zopa notes that past performance is not a guide to future returns.

Merve Ferrero, chief strategy officer at Zopa Bank, said: “Investing has felt too complex, intimidating and inaccessible for far too long. At Zopa, we’re changing that by removing unnecessary jargon and friction, and giving customers the confidence to grow their wealth with peace of mind. Our new permissions allow us to take that mission even further – delivering more tailored support and an intuitive investing experience that fits naturally into customers’ everyday financial lives.”

Invesco backs the product

The two ready-made funds are managed by Invesco, the global investment manager, and connected to Zopa through Upvest’s API infrastructure. Customers can start investing with as little as £1.

Kate Dwyer, head of UK and Northern Europe distribution at Invesco, said: “Targeted support permissions have the potential to make a real difference in helping people engage with investing earlier and with greater confidence. Zopa’s focus on simplicity, education and customer experience is helping to make investing more accessible, and we’re pleased to support an approach that empowers customers to make better financial decisions over the long term.”

The investment product extends Zopa beyond its existing savings, lending and everyday spending products, including its Biscuit current account.

Banks enter a new advice-gap market

The FCA has estimated that at least 18 million people could receive extra help with investments and pensions over the next decade through targeted support.

The timing puts banks into a more active role in consumer investing. UK households continue to hold large amounts in cash, while many consumers either cannot afford full advice or do not see themselves as the kind of customer who needs it.

Targeted support gives firms a way to reach those customers earlier, but it also leaves them with a careful line to hold. Suggestions must be clear enough to help customers act, without being mistaken for fully personalised advice.

For Zopa, the permission adds another regulated product layer to its banking proposition. The bank reported profits of £65 million for the financial year ending 31 December 2025, almost double the previous year, and says AI now handles around 45,000 customer service chats each month, with 70% to 75% of servicing requests fully automated.