Skip to content
Month NTX
  • Home
  • Business account
  • Business loan
  • Business mortgage
  • Business management
  • Business capital
Business account

Fintech bank Monzo slows down corporate account plans after missing grant

Posted on May 11, 2019October 13, 2021 Author Jackson B. Rochester Comments Off on Fintech bank Monzo slows down corporate account plans after missing grant

Monzo, the digital banking start-up, has been forced to put the brakes on its plans to roll out a corporate account offering, after failing to win part of a £ 80million public grant.

The Board of Directors of Banking Competition Remedies, the body responsible for delivering £ 775million in RBS funding to businesses serving small businesses – a legacy of the bank’s crisis-era bailout – has awarded its £ 50million first prize to Nationwide Building Society, with Investec Bank and The Co-operative Bank each receiving £ 15million, on May 14.

The awards are the second upcoming round of its “Capacity and Innovation Fund”. Recipients of the first, announced in February, received larger amounts, with fintech companies winning big. Ailing challenger Metro Bank received £ 120million, Starling Bank received £ 100million and ClearBank and Tide took home £ 60million in a joint prize.

Monzo, who has so far focused on consumer checking accounts, previously said that a large subsidy would allow him to speed up plans to launch a commercial equivalent of his flagship product, paired with a credit card. “warm coral” color.

A spokesperson said Financial news: “Although we are disappointed that we were not successful in this application, we are still excited to create a financial control center for small and medium businesses.

However, a gain from the BCR fund would have enabled Monzo to considerably expand its investment banking activity. He planned to “hire new people who can research, design, create, test, launch and market business bank accounts,” according to a blog post last November.

The bank added, “If we don’t get the money, business banking will be a longer term project. “

Monzo’s spokesperson said the bank still hopes the new service will be widely available by the end of the year. A few hundred customers are already using it for testing.

RBC’s selection process has come under heavy criticism in recent months. In March, MP Nicky Morgan, chairman of Parliament’s Treasury Committee, asked him about how Metro Bank won the top prize just weeks after exposing a £ 900million accounting error that precipitated a sharp drop in its share price.

Allegations of conflict were also made against Aidene Walsh, the agency’s executive director, for working alongside Starling Bank boss Anne Boden at Dutch bank ABN Amro.

This despite the fact that Starling Bank wrote to the chairman of the committee, Lord Godfrey Cromwell, declaring the connection at the time of Walsh’s appointment, as reported by The Times.

With fintech firms faring worse in the second round of grants, an industry executive suggested that the lobbying efforts of larger banks that were “looking to lose” in the first round could be to blame.

“It is disappointing to see these big banks getting money to increase competition,” he said.

The Standard Eveningrecently reported that besieged lender TSB Bank had moved away from the BCR program, with insiders calling it “shambolic.”

To contact the author of this story with comments or news, email Ryan Weeks


Source link

Related posts:

  1. Ecobank expands its corporate account offering
  2. Meridian Launches Digital Application Process for New Canada Emergency Loans for Businesses Program
  3. Business account provider Tide to enter India
  4. MANTL Launches Enterprise Account Opening Solution to Meet Industry Demand for Automated Omnichannel Business Onboarding
Tagged small businesses, small medium
Jackson B. Rochester
https://month-ntx.org

Related Articles

Business account

Board strikes back as Lloyds doubles corporate account fees

Posted on May 18, 2021August 22, 2021 Author Jackson B. Rochester

Boardroom strikes back as Lloyds reveals plans to double fees on commercial accounts By Lucy White for the Daily Mail Posted: 5:01 p.m. EDT, May 18, 2021 | Update: 5:45 p.m. EDT, May 18, 2021 Lloyds Bank faces backlash after revealing plans to double fees on its trading accounts. The lender has sent letters to […]

Business account

Emirates Islamic Introduces Emarati Corporate Account to Support UAE National Businesses

Posted on April 12, 2022 Author Jackson B. Rochester

Emirates Islamic, one of the leading Islamic financial institutions in the UAE and the preferred bank of UAE nationals, has launched an Emarati corporate account, designed specifically to meet the needs of UAE domestic businesses The new account builds on the bank’s continued commitment to supporting the UAE’s SME sector. (Image source: Adobe Stock) The […]

Business account

Modulr will fund Intuit’s new QuickBooks business account

Posted on March 3, 2021October 22, 2021 Author Jackson B. Rochester

Modulr will fund Intuit’s new QuickBooks business account By Megha Bhattacharya Payment as a service platform Modulr today announced that it has partnered with Intuit QuickBooks to power its new QuickBooks business account, a new digital payment account designed specifically for small businesses. The collaboration is expected to allow QuickBooks to combine a business account […]

Post navigation

Magellan Homeloans closes its doors
Trade finance brokers are positive about the future of business

Categories

  • Business account
  • Business capital
  • Business loan
  • Business management
  • Business mortgage

business account business loans business management business owners cash flow interest rates management software market research middle east north america payday loans short term small businesses small medium united states

Recent Posts

  • Slight increase seen in small business loan approval rates

  • DocFox streamlines business account integration for InBank

  • The expert opinion on Burnley’s finances and the questions raised by the club’s ‘worried’ accounts

  • Self-Storage Financing: Loan Options for Small Businesses

  • Professor/Associate Professor/Assistant Professor in Electronic Business Management and Information Systems at BNU-HKBU UNITED INTERNATIONAL COLLEGE

Archives

  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • December 2019
  • October 2019
  • September 2019
  • May 2019
  • March 2019
  • February 2019
  • September 2018
  • March 2018
  • October 2017
  • September 2017
  • August 2017
  • February 2017
  • November 2016
  • August 2016
  • July 2016
  • October 2015
  • May 2015
  • August 2013
  • August 2012
  • Privacy Policy
  • Terms and Conditions