Monzo in the Media

[Revels]

@WillsT

This will massively increase NII and also give them more flexibility to do more lending… and hopefully…. Mortgages? Thoughts?

This isn’t how it works

Monzo raising another £50m

:fyi: capital is unfortunately not the same as deposits. A very simplified view with made up numbers might be: Monzo has £1 billion in customer deposits and £100 million of capital (Monzo’s own money from investors/ equity). When we lend out £1 million we need to hold £200k (20%) of capital (this is money we need to put aside and effectively do nothing with). So you might think that Monzo can lend out £1.1 billion but this would mean we need to hold £1.1 billion * 20% = £220 million of capita…