Mondo bank taking £1m crowdfunding investment
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Mondo bank taking £1m crowdfunding investment
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Re: Mondo bank taking £1m crowdfunding investment
#2Disclaimer: I'm seriously considering investing in this. There was a very good talk about their back end infrastructure at NDC London that makes me confident in their tech chops. Some of the value add concepts on their website look really useful for attracting customers.
Crucially I'm aware of just how much legacy cruft is holding back more established retail banks. In the same way that things like newer airlines can offer much better customer service at cheaper rates than the established competition Mondo seems to have real potential to disrupt and innovate. Plus there is a still a significant anti-banker mood where being a retail only operation could be of significant benefit.
Finally banking has a pretty high barrier to entry, Mondo seems to have the backing and management experience to get a licence. However it isn't something that loads of Uber for X types or Samwer-esque clones can spring up overnight.
Re: Mondo bank taking £1m crowdfunding investment
#3To me this seems like an opportunity to skip the waiting line of 30,000 people for a payment of £10. In terms of the investment opportunity, it seems that - like most of CrowdCube investments - it is hard to tell if and how this could turn into anything profitable:
>We estimate we’ll raise another £10m to launch as a bank in Q4 2016, although this may vary, and further capital raises will be necessary as the bank expands its balance sheet
E.g. in further investment rounds could the crowd investors be able to sell of their shares? Do we even get shares for this investment? I will probably invest, and probably a small amount, to understand more on how this crowd funding really works (and to see if I can get a return in the next 10 years).
Re: Mondo bank taking £1m crowdfunding investment
#4It's unclear from the blog, but will Mondo be using Crowdcube's A/B shares?
A lot of Crowdcube investments issue two types of share depending on the investment size. At the higher end the A shares are regular shares, but smaller investors usually get B shares that are not equal and grant fewer rights.
The very simple question for Mondo, are all of the shares that you'll be offering via Crowdcube on the same terms as the shares that Passion have for their GBP 5m in the same round?
Re: Mondo bank taking £1m crowdfunding investment
#5It's unclear from the blog, but will Mondo be using Crowdcube's A/B shares? A lot of Crowdcube investments issue two types of share depending on the investment size. At the higher end the A shares are regular shares, but smaller investors usually get B shares that are not equal and grant fewer rights. The very simple question for Mondo, are all of the shares that you'll be offering via Crowdcube on the same terms as…
This as well as £/shares seems like two key things that haven't been answered.
Re: Mondo bank taking £1m crowdfunding investment
#6Separate to the risks of investing, what are the risks of actually using Mondo as a bank?
I really like the idea but can't shake the worry of a huge financial loss is it actually possible?
Re: Mondo bank taking £1m crowdfunding investment
#7Separate to the risks of investing, what are the risks of actually using Mondo as a bank? I really like the idea but can't shake the worry of a huge financial loss is it actually possible?
Right now it's backed by some prepaid card provider. Once they get a banking license, bank accounts will be protected under government regulations, so afaik as secure as any other UK bank.
Re: Mondo bank taking £1m crowdfunding investment
#8Disclaimer: I'm seriously considering investing in this. There was a very good talk about their back end infrastructure at NDC London that makes me confident in their tech chops. Some of the value add concepts on their website look really useful for attracting customers. Crucially I'm aware of just how much legacy cruft is holding back more established retail banks. In the same way that things like newer airlines can…
Got a link to the talk/slides? As someone who works in a bank I'd be really interested what a truly green field approach looks like!
Re: Mondo bank taking £1m crowdfunding investment
#9Separate to the risks of investing, what are the risks of actually using Mondo as a bank? I really like the idea but can't shake the worry of a huge financial loss is it actually possible?
Right now it's backed by some prepaid card provider. Once they get a banking license, bank accounts will be protected under government regulations, so afaik as secure as any other UK bank.
Specifically UK bank deposits are protected up to £75,000 under the Financial Services Compensation Scheme. If you've got so much money that you have > £75k in a single bank for any length of time (house purchase etc aside) then you have a different order of problems.
http://www.fscs.org.uk/what-we-cover/eligibility-rules/compe...
Re: Mondo bank taking £1m crowdfunding investment
#10Separate to the risks of investing, what are the risks of actually using Mondo as a bank? I really like the idea but can't shake the worry of a huge financial loss is it actually possible?
I work at Mondo. We will be a member of the Financial Services Compensation Scheme (FSCS) and all customer deposits will be insured up to £75k per person.
During our current alpha test (and before we have a banking license), your funds are actually held by our partner bank Wirecard.
Edit: The internet beat me to it. My work here is done :)