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After the financial crash of 2008 and the subsequent succession of banking scandals, in which the taxpayer bailed out multiple prominent banks, the UK's governm
by seabass-labrax 3y ago
After the financial crash of 2008 and the subsequent succession of banking scandals, in which the taxpayer bailed out multiple prominent banks, the UK's government at the time introduced a series of measures to promote smaller banks. For individual personal accounts, Monzo and Starling are probably the most well-known of these so-called 'challenger banks'[1].
[1]: https://en.wikipedia.org/wiki/Challenger_bank https://en.wikipedia.org/wiki/Challenger_bank
- harel 3y agoFurther more, banks that were bailed out signed a deal to actively help those smaller banks by transitioning clients to them. I know that because my bank offered me a few times to the point of nagging to switch my business accounts from them to one of the smaller ones. They offered to pay me a sum of a few thousand pounds to do that. I declined at the time due to me liking my bank and appreciating one app for all my business and personal accounts. When I pushed why are they willing to pay me large sums to leave them, the told me the above.
- seabass-labrax 3y agoI learnt about this situation, as it happens, from the founder of Griffin, so was particularly interested in this blog post. It seems like the initial excitement of developing a banking system in Clojure might have transitioned to more bread-and-butter aspects of banking now, but immutable data is an ideal match for their mandatory audit trails. I have to admit that I wouldn't mind being paid a large sum to switch to Griffin, but then again, my current provider is one of the more responsible ones which didn't have to be bailed out in the crisis :)
- harel 3y agoThere are benefits to being with irresponsible banks :-)