Mondo is a mobile-first bank and a new challenger bank in the UK that is yet to receive its license. When launched, users will be able to access their current accounts on their smartphones and can have full control of their money.
Users are given access to Mondo’s iPhone app and a MasterCard prepaid debit card. They can load money onto the card every month and spend it at shops, ATMs and online. The users also receive real-time feedback regarding their spending.
It will also provide overdraft facility to the users which will be at their user’s choice. When the customer account reaches zero, the Mondo app will send a push notification alerting the user about the downward trend in the account. The customer then has the choice of opting for an overdraft amount. If the customer does opt for it, Mondo will send the amount required to keep him/her going till the next payday with an interest on the overdraft.
Mondo is different from legacy high street banks that have thousands of branches to support because its entire experience is designed for the smartphone. The company wants to build a bank for the 21st century and is looking forward to provide the experience of private banking driven by technology.
“There’s a tremendous amount of useful data out there, but consumers need to be aware of how their data is being used, and choose to share it on an explicit opt-in basis,” said Mondo CEO Tom Blomfield in an article by The Guardian. “Banks will destroy customer trust if they simply become another conduit through which to advertise.”
It is not just an app using existing software or an existing bank to offer its services. Mondo is writing its own full stack banking software from the ground up.
The startup has applied to the Bank of England for a banking license. Deposits will be limited to a maximum of £50,000 until further restrictions are lifted.
UK is going through a chain of developments in digital-only banking. Many new startups are coming forward with the perspective of combining banking with technology.
Atom is the latest challenger bank in the UK that has received a licence from banking regulators.
The financial regulators are encouraging competition in the retail banking.