Who knew Tom could be so philosophical?
Offer savings accounts by Monzo not by third parties and lend money… loans, credit cards, Mortgages…
The funding for which comes from…?
Surely a lot of that would come from the holding savings themselves?
Related question - other than ‘wanting to be a financial hub’, what benefit is there to Monzo of NOT holding customers savings and encouraging 3rd parties to hold them instead?
Good article, I like this bit:
“We have to be profitable and sustainable. But you also need to think about our impact on society and environment. If we don’t do that, we make a bunch of profit and screw everything else up.”
There isn’t and that’s the point isn’t it? They can’t promote a marketplace of services if their underlying plan is to do it all themselves.
This is because I imagine it would put companies off wanting to partner with Monzo if this pattern started to emerge. Monzo will lose their ability to negotiate great deals if the company fears that later down the line Monzo will drop them because they want to do it themselves.
Really surprised that no-one’s commented on this sentence yet…
The Cult of Hot Coral.
Missing a couple of s
To evolve Monzo needs to find ways of making revenue that are a fair and transparent exchange of value, Blomfield explains.
It didn’t really help that the first two major iterations of the Plus accounts were a shocking load of crap which offered virtually nothing of value for the monthly fees.
FSCS protection, for example if Paragon Bank hold your deposits of £85k you get £85k x 2 because your Monzo account is also FSCS insured
That is a benefit to the consumer, not Monzo
It will also affect Monzo’s capital requirements, I think
"FSCS protection, for example if Paragon Bank hold your deposits of £85k you get £85k x 2 because your Monzo account is also FSCS insured "
not sure I agree with this , if you have £85K in deposits you don’t get £85k x 2 if both banks go bust , you get £85K - but what a way to make money if you’re right
An FSCS guarantee doesn’t “insure” your money with both institutions , it guarantees against loss of your deposit
I meant if you have £85k (the limit) in your Monzo, your deposit in that is covered fully as well as up to £85k in your Paragon Bank pot