This news is important for banking in the UK for the following reasons:
- UK banks are slow to innovate and people (especially younger generation) are getting annoyed. People want a bank that is digitally strong, Mondo's 30k waiting list proves this.
- Banks will become more like platforms. Number26's partnership with TransferWise is an example of this beginning. See Clayton Christensen illustrate this https://youtu.be/oCKZwrfysbM?t=1h19m28s
- The UK is trying to make banking more competitive (last 5 years has had applications for more than 5 new banks, before this there was 1 new bank in 150 years). This policy is working.
What remains to be seen is whether Mondo will make money in the way a traditional bank does.
IMO the biggest challenge for a new banks is customer acquistion, and it looks like Mondo has a pretty good handle on this.
- UK banks are slow to innovate and people (especially younger generation) are getting annoyed. People want a bank that is digitally strong, Mondo's 30k waiting list proves this.
- Banks will become more like platforms. Number26's partnership with TransferWise is an example of this beginning. See Clayton Christensen illustrate this https://youtu.be/oCKZwrfysbM?t=1h19m28s
- The UK is trying to make banking more competitive (last 5 years has had applications for more than 5 new banks, before this there was 1 new bank in 150 years). This policy is working.
What remains to be seen is whether Mondo will make money in the way a traditional bank does.
IMO the biggest challenge for a new banks is customer acquistion, and it looks like Mondo has a pretty good handle on this.