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Do they lend? That’s where basically all of a bank’s profits come from, deposits are just there mostly as low-cost liquidity (and because creating deposits and
by stephen_g 4y ago
Do they lend? That’s where basically all of a bank’s profits come from, deposits are just there mostly as low-cost liquidity (and because creating deposits and the flows of inter-bank transfers are all part of enabling lending to happen).
So I’m always surprised that lending and credit isn’t the core strategy of these banks - there’s very little money to be made in fees…
- Nextgrid 4y agoThey are very conservative with their lending. They do lend, but not much (relatively speaking), and in any case I'm not sure lending alone will satisfy their investor's expectations.
- danpalmer 4y agoThere's not even that much to be made in most lending (by transactions). Lending through overdrafts doesn't make a lot as it's typically lending to customers who are least able to afford it. Mortgages and credit cards are the big ones, and Monzo does neither. However I would like to see a credit card from Monzo.
- madeofpalk 4y agoMonzo does have Buy Now Pay Later now, for whatever that's worth.