Mainstreet banks normally borrow money using the fractional reserve system, basically lending 10 times the amount of money available from the deposits.
However this dutch bank called Bunq is allowing the customers to decide what to do with their own money, if they want it to be borrow for mortgages, companies, green initiatives or just keep it on the Central Bank and not borrowing it at all.
I think this is a great idea, and I am aware that the amount of interested could be drastically reduced, but also some customers would value more the security and the value of choosing what to do with their money.
Also need to consider that for some people there are religious implications on lending money on interest so for them also would be a good thing.
I would like to know the thoughts of the community about this issue and maybe we can suggest Monzo to implement something similar in the future.