I don’t have much understanding of the inner workings of the baking world, but it seems to me that only 1 bank makes any profit from me. That being the on with which I have a mortgage. (I’m leaving out the fact that they invest my money and keep the returns)
it seems to me that, as money is made by lending, the banks are incentivized to make me manage my money poorly so that I use an overdraft facility or credit card.
Based on the above, how does everyone feel about accounts coming with a small monthly fee? With the business model of charging for accounts the bank would then be more inclined to focus on helping the customer, rather than trying to lend them money.
Note: I’m interested in opinions on the idea of charged accounts (without other bonuses), not the ability of Monzo to compete with the existing model of banking using a different one.