Iām assuming that deposits includes any in-credit balances that Monzo current accounts have, I donāt think the money has to be in a savings account?
Monzo can loan a portion of those in-credit balances, to earn Net Interest Margin which is why the figure matters.
Thatās comparing two different things; a proposition built for deposits, and one thatās more accidental, or a consequence of getting a salary paid in.
Although the figures are impressive (in terms of money spent and sent using Monzo), it does still beg the question of how is Monzo make a decent, sustainable return?
Atom arenāt 100% clear about their CA, although itās āsome point in the futureā.
You hope so, as itās exciting, but itās a really new concept, and we (UK public) arenāt the quickest at picking new things up. The negative media coverage of Open Banking et.al isnāt going to help either.
I never have & the same goes for Metro bank although theyāre a little more similar so itās an apples to oranges comparison. Which is what makes it interesting to me, weāre comparing Monzo to a new legacy bank
If Monzo had more deposits at this point, that would be a positive. If not, then as others have mentioned in this thread, we know why. It just gives a bit of a sense of how the different approaches compare when it comes to this particular measure.
All depends on your definition of a āchallengerā! Arguably, if they are to be bought by BBVA, theyāre not a bad bank to be owned by; even 11FS have recognised them as such.
The way I see it is that Atom have gone for a less sexy, more traditional route, creating a stable base (albeit with a terrible app) to then build upon. Whereas the whole CA/Opening Banking/marketplace place thing is interesting etc, but is it going to develop at the scale to support Monzo, Starling and the rest?
Banking will change, but not in the short-term, so you need to be around to take advantage!
This isnāt a 100% reliable source but itās the best I can find -
It has created a hefty technology set-up in its run up to the launch: FISās Profile core banking system; FIS/Sungardās Ambit Quantum and Ambit Focus for treasury and risk management; Iressā Mortgage Sales & Origination (MSO) suite for mortgage business, front-to-back office; Wolters Kluwerās OneSumX for regulatory reporting; Intelligent Environments (IE) for front office capabilities; CSCās ConfidentID system for security; Phoebus Software for secured business lending and account servicing for residential lending; and WDS Virtual Agent for customer queries supplied by WDS (a subsidiary of Xerox).
Sure but if youāre not changing the business model then youāre still exploiting users with things like punitive charges & not fully taking advantage of the opportunities of things like digital & Open Banking.
I doubt they will, I get the impression that they just saw an opportunity to make more money by eliminating branches but for their business to work, they donāt need a completely modern stack.
Perhapsā¦ My Silicon Valley friends tell me that āSimple Bankā, once considered an innovative challenger, has stagnated since they were acquired by BBVA. Anecdotal, but Iāve heard that from multiple people.
I mean, for some companies itās probably the way to go. For us, Tom has said on multiple occasions that selling out would be a sign that you are unable to achieve your vision, and I agree with that. It would feel a bit like giving up. I actually discussed it in my job interview - and said Iād have far less interest in the company if I felt being acquired was a more likely outcome than an IPO!
Comparing Atom and Monzo makes absolutely no sense, and how can they have Starling in there when they are litteraly writing that they have no idea of figures for themā¦
Itās basically, we think these are the best, based on our opinion