IBS Journal July 2016
11
It adds that the basic Number26 checking account is a free product and the venture incurs a network fee for every cash withdrawal. In Germany that amounts to between € 1,50 - 2,00 per withdrawal, significantly above the European average. “We cover this fee with the assumption that most customers will use their accounts and this benefit, reasonably. As an extension and alternative to ATM availability we’ve also developed the Cash26 network, which provides customers with access to 6.000 German retailers for cash transactions. Our transaction fees for this service are significantly less than those incurred for equivalent ATM withdrawals. It’s important to us to offer one of Europe’s best banking accounts with Number26 for the long-term, and with fair policies. We do have to recognise that we are not able to cater to all clients with our product, as this would mean that the vast majority of our customers would have to bear the significant cost burden
of a very small minority. That’s why we issued the recent cancellations.”
The bank has clearly been rattled by the social media backlash and resulting media coverage and is countering with an emphasis on transparency as one of its core values. “The strong reactions to the cancellation notices have shown us first and foremost, that many customers weren’t aware that their account usage is incompatible with our core account offering. We’ve taken these reactions to heart and embrace them as a call to action to inform our customers more transparently and proactively in the future. In the interest of complete transparency and fairness, we’re also committing to work with our customers over the coming weeks to establish a Number26 Fair Use policy that outlines usage guidelines for Number26,” the statement concludes.
Mondo laughs off LBG acquisition talk
few days after announcing plans to change its name (see Backchat section for more info), digital only venture Mondo found itself fending off Lloyds Banking Group acquisition rumours.
A
CIO of Lloyds Banking Group, Jonathan Webster, was asked during a panel discussion at a conference in London during June if the FI was planning to purchase Mondo. Webster said he could neither confirm nor deny this, and went on to add, “there are an awful lot of things that can be learned” from the new entrant.
CEO of Mondo, Tom Blomfield, (pictured centre back) tweeted: “There is absolutely no basis to rumours that @getmondo is acquiring @AskLloydsBank.” Whilst in a LinkedIn discussion on the subject, Terry Cordeiro, Head of Product Management - Transformation, Lloyds Banking Group, commented: “I’m confident you’ll find the rumour is a non-starter.”
week in the life of a challenger bank…A
Earlier this year the startup took just one minute and 36 seconds to raise a record-breaking £1 million on crowdfunding platform Crowdcube, as part of a £6 million funding round. Mondo offers a pre-paid card linked to a mobile app. It is in the midst of a public Beta and has also applied for a banking licence with a view to offering a current account.
Scott Thompson
www.ibsintelligence.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52
