When we pay in our salary, taking our balance up by the '000s, do Monzo benefit directly from this significant increase in balance?
As opposed to us paying in say a smaller weekly top up that adds up to the same amount over the month?
I’m curious if or how Monzo is able to leverage greater levels of deposits per account on its balance sheet. Do Monzo invest at all? Does the added capital create better metrics per account enabling cheaper background banking services perhaps? Other positives?
Note: I’m assuming for a moment that a weekly top up would always be via BACs, would equate to your whole wage, and you never hit your overdraft. So you’re not otherwise saving monzo any debit card top up fees etc.