Interesting article about Monzo in FT today -
(You can read the article free by registering on the FT website or Just Google the title and go via search result.)
Found these bits quite interesting;
Monzo’s deposits are held in overnight accounts at the Bank of England. In fact, as of its latest report, Monzo held £97m at the Bank of England, much more than the sum of its total deposits. This implies that a large portion of equity funding the company has received is currently sitting at the central bank.
…It is possible that people will end up frequently checking their daily transactions via an app, if not quite as obsessively as they check Facebook or Twitter. The more frequent the checks, the more effective the likely sales of commission-generating financial products.
… its conception of deposits as a grouping device is an interesting one, and provides one explanation for why it is expected to attract a valuation of up to $1.5bn at its next round of fundraising,…