Currency purse, any thoughts?

(Jamie) #1

What if it was possible to have a multi-currency account in which you can buy your Euros when it was at it was best, then collect interest on it. Since Mondo is getting a banking licence they can do this. It would operate with a multi currency purse and you can change your default currency on the :mondo: app. This would mean Fees are cheaper when the Euro is weaker to the Pound. But also it allows people to hedge against currencies being printed or created at such a fast pace as they are now (QE) it makes sense that you should diversify what you own in currency.

@hugo could this be designed?


I have no idea how this would work in reality but I do like the idea.


It’s basically what revolut does

PS if you can reliably determine when a currency is weak, please let me know and we can both make a fortune

(Jamie) #4

Hi, yes it can be done actually, take the uk as an example, a large part of predicting ‘sentiment’ in AI programs can be done based on the UK economy make up. So the makeup of the uk in a pie chart is split into finance, oil production and the services market. Based on the knowledge you can predict sentiment based on commodity prices, debt and moves in interest rates. You do need alot of computing power to model it though.


I wonder what the break even point is where it would be worth leveraging EC3 for the modelling.

(Jamie) #6

You would have to purchase large currency volumes for it to work, like 2-5 million per day

(james_e_bell) #7

Revolut does this (which I have) but I dont really use it. I think it comes down to what problem is being solved here.

Here are some potential problems:

  1. ‘I want travel money at a good rate’

  2. ‘I want to transfer money to people in other currencies at a good rate’

  3. ‘I am afraid of being overexposed to a currency / want to transfer some wealth between currencies to hedge’

  4. ‘I want to make money by currency trading’

  5. For 1, I thought revolut could be the answer however Mondo actually already solves this because I already get the mastercard/interbank rate at point of transaction or ATM withdrawal on holiday. Hedging against currency between planning to go on holiday/going on holiday seems like a very small edge case in this

  6. Transferwise (or other competitors) can handle this - dont really see how/why Mondo or revolut would handle this better

  7. This is an interesting problem (the ability to switch to other currencies and get interest on them). I dont know how big the market is for this problem but a dollar/euro savings account could be an interesting propositon to answer this

  8. I don’t know that Mondo has ambitions to be a trading platform!


Dammit, I’ve only 1.99million*…


(Jamie) #9

@JamesBell im just saying about ‘saving’ in a different currency. That is quite rare on the UK market, and with mondo being more flexible as a startup it just makes sense.

(tom) #10

Our view is that Mondo customers shouldn’t have to think about FX.

We’ll give you the best rate whether you use your card abroad or want to send money to friends overseas.

FX hedging or trading is not a use-case that 99.9% of consumers currently care about, so we’re unlikely to build it into the core product. But we will eventually offer accounts in a number of currencies, so it’s entirely possible that people could build this functionality on the API.

:de: Monzo in Germany [Discussion]
Foreign Currency
Pre-purchase holiday money
Store / top up different currencies

Multi currency accounts? :clap: :+1:

Store / top up different currencies
(Jamie) #12

Actually @tom customers care about what they think is money which is actually currency not backed by anything. Say China fully backs the yuan with gold in the next few years you will see massive fluxes in currency. The problem that your bank is trying to solve is the trust problem. How is anyone ment to trust anyone when a currency turns out to be similar that of Venezuela? Complacency is what give us the 2008 crisis. My question to you would be even though there is not much customer demand are you being complacent by putting all your eggs in two currencies like the Euro or the Pound?

(Lee Benson) #13

Whilst I LOVE getting the best rate at the time of purchase, the ability to “hedge” would be awesome. That would be as simple (in theory) of allowing multiple currency ‘sub-accounts’ that can be ‘bought’ at any time.

Case in point - I was in Canada a few days ago, and the rate was 1.92. I knew it wasn’t going to last. With brewing tension over Brexit, it’s a downward trajectory for GBP from now 'til June 23rd. But I was in Canada for a few more days. Had I been able to ‘buy’ more CAD, I would have locked in the 1.92 rate. Instead, I was tied to the downward trend and a couple of days later, the rate was 1.88.

It’s not so much trading, but instead allowing to purchase at the interbank rate at any time and holding that currency separately. Multi currency accounts solve this - no fancy trading tools needed.

(tom) #14

You should become an FX trader!


It’s like saying to uber that some customers prefer skateboards. It’s pretty off tangent for a business with a very clear and simple vision.

Not a bad idea though. Start this new bank and i’ll sign up.


Hi! I’ve just got a monzo card and love it! However i think it would be great to be able to buy and keep different currencies on the card. I got monzo because I’m about to go backpacking and loved the no international fee element and ease of access with the app. But with the pound crashing I want to lock in international currencies asap. Not being able to do this has made me switch to revolut even tho i don’t like them as much & would think there’d be a lot of travellers in a similar situation. Will follow with interest what you do going forward. X


If you know the pound is crashing, you should invest all you have in buying euros or whatever, then buy back after the crash.

(This is not actually meant to be financial advice!)

( related to Monzo CEO, Investor in Monzo ) #18

if you had of locked in your exchange rate in January this year when it was $1.21 against the dollar would you have been disappointed today when its $1.30 odd ? unless you know whats going to happen with exchange rates - in which case you should be a very rich currency trader - what is the point of "locking in’ exchange rates - you would just be gambling that it wasn’t going to get any better - lol you should have locked it in when it was $2.11 in 2007 and sold in 2009 when it was $1.36 - except Monzo wasn’t around then :slight_smile:

(Ed) #19

Unless multi-currency wallets are in Monzo’s future then they won’t be a bank of the future. Just because you may always want your funds held in GBP doesn’t mean that is a best way of doing things. I’m in Europe a dozen or so times a year making purchases and withdrawing cash, and I often receive EUR payments. Why should my bank force me to turn EUR income into GBP, only to then turn it back in EUR when I then want to buy something? That sounds awfully like legacy banking.


That is a perfectly valid use case for multi-currency and until Monzo get their act together on it, I recommend N26 (PM me for a referral if you’d like and are eligible).

I just don’t see the need for multi-currency for going on holiday - you are as likely to exchange at a poorer rate as you are a better rate. Unless you can predict currency movements, and as has been suggested, if you can do that you will be very rich and won’t need to worry about holiday exchange rates.