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so if Mondo's going to only provide a current account: what are they going to do with their customer's deposits? just leave them sit as cash doing nothing? a b

by blibble 11y ago

so if Mondo's going to only provide a current account: what are they going to do with their customer's deposits? just leave them sit as cash doing nothing? a bank that cross sells will use the revenue from lending to ruthlessly undercut this newcomer. banks are big as the size of the balance sheet allows mind boggling economies of scale. existing banks are probably also able to hire a team of 10 good app developers to put together a high quality app, if they thought the demand was there...

alexbilbie 11y ago
Someone recently asked on the Mondo Community forums "If I put my money into Mondo, how will it be invested?" Hugo Cornejo an employee answered with the following: "Very good question. During the first year a very small proportion of your money will be lent to private individuals in the form of unsecured overdrafts. That’s all the lending we’re doing. The rest sits in cash at the Bank of England. In future, we will do more personal lending and invest some of the money in UK government bonds." Unfortunately the link to this reply is only available to Mondo testers: https://community.getmondo.co.uk/t/after-6-weeks-of-use/337/2 https://community.getmondo.co.uk/t/after-6-weeks-of-use/337/...
pbsk 11y ago
from their FAQ[1]: "What will you do with my money once you're a bank? In year 1, a very small proportion of your money will be lent to private individuals in the form of unsecured personal overdrafts. The rest sits in cash at the Bank of England. In the future, we will do more personal lending and invest some of the money in UK government bonds." Until they get their banking license, they're just offering rebranded pre-paid debit cards from Wirecard. From the FAQ: "We have given out the initial batch of 500 Mondo Alpha cards." "In total, we’ve got 3,000 limited edition “Mondo Alpha” cards to give out over the the next three months or so." [1] https://getmondo.co.uk/faq/ https://getmondo.co.uk/faq/

by blibble 11y ago

alexbilbie 11y ago

Someone recently asked on the Mondo Community forums "If I put my money into Mondo, how will it be invested?" Hugo Cornejo an employee answered with the following: "Very good question. During the first year a very small proportion of your money will be lent to private individuals in the form of unsecured overdrafts. That’s all the lending we’re doing. The rest sits in cash at the Bank of England. In future, we will do more personal lending and invest some of the money in UK government bonds." Unfortunately the link to this reply is only available to Mondo testers: https://community.getmondo.co.uk/t/after-6-weeks-of-use/337/2 https://community.getmondo.co.uk/t/after-6-weeks-of-use/337/...

pbsk 11y ago

from their FAQ[1]: "What will you do with my money once you're a bank? In year 1, a very small proportion of your money will be lent to private individuals in the form of unsecured personal overdrafts. The rest sits in cash at the Bank of England. In the future, we will do more personal lending and invest some of the money in UK government bonds." Until they get their banking license, they're just offering rebranded pre-paid debit cards from Wirecard. From the FAQ: "We have given out the initial batch of 500 Mondo Alpha cards." "In total, we’ve got 3,000 limited edition “Mondo Alpha” cards to give out over the the next three months or so." [1] https://getmondo.co.uk/faq/ https://getmondo.co.uk/faq/