When loan customers make a monthly repayment, the capital and interest they pay must be divided across many different investors due to how we diversify funds.
We divide all repayments into micro-pennies, to 8 decimal places, which allows for a greater level of accuracy and fairness overall.
To report whole pence to you, we must then round these micro-pennies up or down. This creates small discrepancies against your Zopa Total.
Here’s an example of a micro-penny repayment:
A loan customer makes a repayment of £105 of capital and interest combined. The £105 must then be divided across 62 investors who all contributed to the loan (let’s assume each investor contributed the same amount of capital to the loan).
£105 / 62 = £1.6935483 per investor, which is credited to your account.
However, our reporting would round this down to £1.69 as the nearest whole pence.
Here’s an example of a Zopa Total discrepancy:
An investor has £21.394 in Core and £30.7930 in Plus.
In the dashboard, we report to the nearest whole pence: £21.39 in Core, £30.79 in Plus, and a Zopa total of £52.19.
This is because £21.394 + £30.793 = £52.187 which rounds up to £52.19.
However, £21.39 + £30.79 = £52.18, so it appears as though the product totals don’t add up to the Zopa total.