4 ms·
Check out Monzo in the UK. They started as a top up payment card with great technology. This meant they didn't need a banking license. They are now moving into
by Blackstone4 8y ago
Check out Monzo in the UK. They started as a top up payment card with great technology. This meant they didn't need a banking license. They are now moving into the current/checking account space with a license.
So do you need a license from the start? Impossible to tell from your comment.
- deleted 8y ago[deleted]
- break_the_bank 8y agoThe idea is heavily borrowed from Monzo. A Payment Bank in India seemed like the closest thing to what Monzo did initially. A full banking license requires 5 times more capital than a payment bank. That is a good question. I'll see if I can still issue cards that links to one real bank account and if we can bypass being a payment bank.
- csomar 8y agoYou can re-issue international debit cards and sell them. The vendor will give you API and you build the interface. If you can convert local indian currency to USD, then it can work for you. From there, you get traction and then ask investors for cash.
- break_the_bank 8y agoI'll look at this. I didn't think of this, I am a little skeptic about Reserve Bank of India allowing this. Thanks for the lead.
- Cenk 8y agoN26 in Germany worked around the same problem by putting the customers actual accounts into an existing bank and just acted as the front-end for those accounts. They later (1-2 years after launch) got their own banking license and moved everyone’s accounts over.