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.
The company faces many competitive challenges, as is inevitably the case for an early-stage business. It also attracts inevitable scepticism from some adherents of traditional banking. But its conception of deposits as a grouping device is an interesting one, and provides one explanation for why it is expected to attract a valuation of up to $1.5bn at its next round of fundraising, as the FT reported in August. It also hints at how the notion of a current account might evolve in future. We’ll speculate about where that kind of thinking might ultimately lead in the next post.