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> Monzo, Starling and e.g. Tide are doing pretty well here as a result of the poor show that other banks have been putting on for years. We're going to see a s
by oarsinsync 7y ago
> Monzo, Starling and e.g. Tide are doing pretty well here as a result of the poor show that other banks have been putting on for years.
We're going to see a serious decline in the number of challenger banks in the UK soon. Monzo has yet to post a profit. Yep, the bank we trust with our deposits is losing money every month, and Monzo is the poster child of the challenger banking movement. How healthy do you think the other banks are?
The strength of a retail bank is on the back of the strength of it's loan book. At historically low interest rates, that doesn't make for great profit opportunities for retail banks.
- buckminster 7y ago> the bank we trust with our deposits is losing money every month Meh. I don't trust the bank. I do trust the government deposit guarantee.
- pbhjpbhj 7y ago>Monzo has yet to post a profit. // Do you mean "Monzo are making losses", because not making a profit is not at all a problem for ongoing operation.
- dx034 7y agoIt usually is a problem, companies need to make a profit most years so that they can use it up in bad years. Also, investors at some point would like to see a profit. There's a lot of "free" VC money at the moment but that's (hopefully) gonna end at some point.
- pbhjpbhj 7y agoReserves don't count as profits AFAIK.
- oarsinsync 7y agoI think so, given that's what I wrote: "Monzo has yet to post a profit. Yep, the bank we trust with our deposits is losing money every month"