This is already happening backed by the government.
1 Like
More interesting question why isn’t Monzo on the list?
Source:
They probably don’t have the capital and/or the capacity to handle the applications.
1 Like
I think the money is provided by the government though
Monzo don’t provide business loans at all so they didn’t sign up
Afaik the money isn’t supplied by the gov, they just say they’ll reimburse the banks in the case of default
2 Likes
Ah interesting, I found the process for becoming a lender if anyone is interested:
Edit thought this was very interesting:
If the applicant’s business is loss-making, BBB will wish to see adequate cash
resources, a clear strategy of how the applicant plans to reach profitable status over time and how a
BBLS portfolio could be safeguarded in the event of the applicant ceasing trading, for example, via
the establishment of an arrangement with a back-up service provider.
2 Likes
And the government won’t reimburse the bank until they have made a reasonable effort to reclaim the debt themselves first
2 Likes
Not sure if change in required reserves is material. I thought that monzo’s reserves have been multiples of what required. Thus a change of what is mandatory Vs what their reserves are, doesn’t matter much.
From the Pilar 3 2020 report (https://monzo.com/documents/pillar_3_2020.pdf)
Monzo’s prescribed TCR was updated to 13.65% of RWAs plus a static add on of £21m in May 2020.
13.65% of RWAs + £21m is roughly £50m. At year-end 2020 Monzo had CET1 capital of £142m. Assuming a loss of £10m a month they would have lost £50m to date leaving only four months of additional runway.
I think Monzo did exactly the right thing raising money before it got precarious which likely would have led to a raise on much worse terms.
4 Likes
I love Monzo. There business account has changed my life. So so much easier than the dinosaur that is BOS
1 Like
I reckon Revolut will be more than fine, they were smart enough to integrate crypto and stocks trading into their app and during the pandemic those transactions have sky rocketed. Monzo wanted to keep banking plain and simple and it has back fired since corona broke out. I’m gutted i didn’t buy Revolut shares couple of years ago, they certainly seem more innovative than Monzo at this point.
1 Like
Welcome to the forum.
4 Likes
Also to remember, Revolut aren’t a bank. So a lot less requirements for protection deposits and rules of working.
2 Likes
In fact, NO FCSC protection. A deal-breaker for any UK primary current account seeker…
4 Likes
do you think Revolut will be allowed a UK banking licence when they allow crypto trading in their offerings …I doubt it somehow, as most, if not all UK regulated banks shy away from crypto for some reason 
Do you think revolut will be “smart enough” to bin its crypto offerings in pursuit of a UK regulated Bank licence, or will they insist all their crypto dealers / traders are above board fine and dandy and the UK regulator will say , yeah OK now you mention it Revolut …tick… here is your licence ?
welcome to the community
1 Like
I wonder if that’s why Revolut’s CEO has left
I reckon that’s a solid “no”
A multi-faceted paragraph - with a whole bunch of “no’s” in there too…
1 Like
I think so. In its current offering all they do is let you speculate on the price within the app. You can’t send, receive or do anything at all with it.
Assume that I know nothing about crypto trading (easy assumption in this case)
What is “speculating” here then, if not a way to make Revolut (and, presumably, yourself, somewhere along the line) some moooney?
1 Like
I have very strong views on the Annual Report, and they are this:
Honestly, not bothered by anything that’s in the report. Monzo are being more open than a lot of banks are about their current situation, and it’s a terrible situation across the globe - not just in banking.
For me, my money is in Monzo (and a small amount in Starling), and if anything goes wrong with them I’ll have a new account set up within a day and use the FSCS protection to move money.
Monzo is, and will continue to be, my main bank because I find the tools, and mobile application they offer really intuitive and useful, it’s probably the best mobile app available.
But that’s just my opinion. 
12 Likes