Y Combinator invests in Monzo through its Continuity Fund
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Re: Y Combinator invests in Monzo through its Continuity Fund
#2I had assumed that Monzo would sell to one of the big banks that forgot (or couldn’t be bothered) to make their consumer experience better. But this feels more like they could publicly trade at some point, although they might need to make a profit sooner than in 10 years’ time.
Re: Y Combinator invests in Monzo through its Continuity Fund
#3I had assumed that Monzo would sell to one of the big banks that forgot (or couldn’t be bothered) to make their consumer experience better. But this feels more like they could publicly trade at some point, although they might need to make a profit sooner than in 10 years’ time.
They always stated, they have no intention to be sold to a big bank.
Re: Y Combinator invests in Monzo through its Continuity Fund
#4What's it's plan for making money.
As I understood it current (checking) accounts don't really make any money, they're just used as loss leaders to lure in customers.
Re: Y Combinator invests in Monzo through its Continuity Fund
#5What's it's plan for making money. As I understood it current (checking) accounts don't really make any money, they're just used as loss leaders to lure in customers.
I believe their plan revolves around lending money and then charging interest on that (like typical banks). They already support overdrafts[1] on their app.
Re: Y Combinator invests in Monzo through its Continuity Fund
#6I'm very hopeful for Monzo, with some caveats.
They have a lot of fascinating and useful DNA having gotten started in the UK before the US. The UK's regulatory environment for digital banking is leagues ahead of America's, w/r/t data access, APIs, etc. If they can persist UK style data features through their American rollout, they'll have something no other American bank currently offers.
While my strong suspicion is that the UK's push for digitization / interoperability in the financial sector stems from Orwellian nanny-state ambitions that would be right at home in China's playbook, it would be fantastic if we could somehow manage to empower customers with access to their own information without similarly empowering data-thirsty governments to surveil and oppress.
The scary parts are probably going make headway regardless, so cheers to the silver lining in the interim.
Re: Y Combinator invests in Monzo through its Continuity Fund
#7I had assumed that Monzo would sell to one of the big banks that forgot (or couldn’t be bothered) to make their consumer experience better. But this feels more like they could publicly trade at some point, although they might need to make a profit sooner than in 10 years’ time.
They always stated, they have no intention to be sold to a big bank.
Intentions can change.
Re: Y Combinator invests in Monzo through its Continuity Fund
#8What's it's plan for making money. As I understood it current (checking) accounts don't really make any money, they're just used as loss leaders to lure in customers.
Having millions of people lend you billions of pounds you can invest/trade short term is the sort of loss I want to get into!
Re: Y Combinator invests in Monzo through its Continuity Fund
#9What's it's plan for making money. As I understood it current (checking) accounts don't really make any money, they're just used as loss leaders to lure in customers.
Overdrafts, interchange, reasonable fees (Monzo Plus, business accounts), commission (marketplace: savings accounts, insurance etc).
Re: Y Combinator invests in Monzo through its Continuity Fund
#10I'm very hopeful for Monzo, with some caveats. They have a lot of fascinating and useful DNA having gotten started in the UK before the US. The UK's regulatory environment for digital banking is leagues ahead of America's, w/r/t data access, APIs, etc. If they can persist UK style data features through their American rollout, they'll have something no other American bank currently offers. While my strong suspicion is…
I thought the open banking and connectivity drive came from Europe's Payment Services Directives, and was EU wide.