Ability for customers to invest in other customers who have been refused credit elsewhere or with Monzo but still being able to obtain credit, via another customer seeing as you have so many people wanting to invest in Monzo, with a slight twist.
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Like a credit union?
Some questions:
Who decides the person applying is fit to have some money from the collective pot?
What if the person borrowing can’t pay?
What if the person borrowing disappears?
What happens if the person borrowing goes bankrupt?
What if all the money is gone? Waiting list?
What if you want your lending money back and there’s not enough in the pot?
I always think these type of ideas are great, then end up deciding its a logistical nightmare
Right here goes…
That would be a joint decision between the Customer lender and the bank which could always be based on the relationship nd payment history of the client with the bank.
Banks are restricted to credit scoring a client for any given borrowing product, credit checks are not always the best form to judge a client capability to repay a debt.
I believe this should really answer alll your questions as your remaining questions are all based on risk.
Investments are not always guaranteed to make you money, in fact, most will probably disagree with this, but investing is the same as playing roulette, well along those lines.
So you’d envision some sort of anonymised profile of the borrowerer that prospective lenders would be able to select from with a one to one relationship? Would the borrower define the length of the loan and the lender the interest? Or maybe you could offer to fulfill a portion of the loan for a certain percentage dragons den style?
Or maybe a scoring system that Monzo applies based on defined behaviours and you can choose to put x amount up for any rank at an agreed interest rate for any portion of your money that got allocated to a loan?
I’m guessing that the benefit to Monzo would be a cut for brokering this deal and there’s no financial capital required by them?
I don’t know if any of this is legally possible but it is interesting as a concept.
Please excuse my earlier reply, it wasn’t meant for this post, apologies.
Your last message were my thoughts exactly.