When monzo make loans available, would the debts be packaged and offered as a potential investment tool?
A loan is not an investment tool…
I’m not sure I understand. Can you expand?
Are you thinking of it as investing in a bond or p2p type investment? I haven’t seen anything or even hints that it’s something they’re thinking of. Probably would need a different set of regulatory permissions
I think playing catch up to Zopa could be a fools game. They’ve been doing it for so long and have just become a bank themselves.
I suppose is kinda like a p2p basically imagining monzo lends a loan and charge a certain percentage (for example a 5000 pounds loan for 2 percent for a year) and sells this debt to someone else (another monzo user maybe) who will buy the 5000 pounds debt and collect 1.8% return. Monzo makes 0.2% but maintains liquidity. Just a thought on how to offer more opportunities to the users.
How would that fit to the idea of offering loans to those with a suboptimal credit history? They would be defined as higher risk loans and in the case of default would reflect badly on Monzo. I’d imagine it would cause them to be restrictive to those it offered loans to
Madness as a concept isn’t it?
Trust that Monzo has assessed the creditworthiness of the individual fully…oops there goes my £5000.
Assess the loan yourself? GDPR issues.