alexs
21 March 2017 00:55
10
Following on from Jonas’ comment, it was great to read yesterday in an interview with Tom, that Monzo already has a current account service for the unbanked in mind already -
basically tiered accounts. I believe you should be able to open an account very quickly, get started in a few seconds, with relatively low identity checks, and have spending caps on your account, at least initially. £100, £1000, whatever it is. There is a risk someone will launder £100 or £1000, but you’re actually bringing 3 million people into financial inclusion. I believe that’s a risk worth taking. Clearly, that’s not my choice, it’s a choice we as a society – the Parliament – will ultimately have to make. But with a tiered account, you get started, you prove that you’re using it in a legitimate way, you prove that you don’t have a thousand accounts, you’re not someone who launders money through lots of accounts, you have a single account, you’re using it the normal way, you use it in a radius around your home, you’re getting your benefits or employment paid into it, from someone who’s close by to you. You establish a pattern of behaviour that illustrates that, actually, you are a 21-year-old living in Stoke and you’re not a terrorist financing attacks in the Sudan.
he also shared some insight into the scale of the problem & the impact it has -
Some people find it very difficult to get access to the documentation required, so they don’t get access to finance. So they end up paying way more for all of their life and basically resort to loan sharks for credit. In the UK, about 2-3 million people are financially excluded. I would like to find ways to help those 2-3 million people come into financial inclusion whilst mitigating and minimising the risk of money laundering and terrorism as far as possible.
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