Tom Blomfield, CEO of Monzo and friend of FinTech Collective, believes that the "bank of the future will be a marketplace." Alphaville takes a closer look at Monzo's unique business model, including the idea that consumers could use excess balances for p2p lending.
This is the first of two posts on the emerging overlap between banking and social media. Monzo is frequently hailed as one of the most exciting challenges the tech industry poses to high street banks. Wikipedia calls it a “digital, mobile-only bank”. Mashable summed it up as the “bank that’s apparently so cool it’s become a chat up line in London’s bars”. Its own stated ambition is to “build a better bank”. In April 2017, it acquired a banking licence. But does Monzo actually behave like a bank? Banks, under one interpretation, are economic inventions which create liquidity from an array of otherwise illiquid assets. Douglas Diamond, the US economist, describes a bank as “a lender financed with demand deposits”. Depositors sacrifice higher returns for the privilege of immediately being able to withdraw their capital whenever they want.
https://ftalphaville.ft.com/2018/09/13/1536813000000/Monzo--When-is-a-bank-not-a-bank-/
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