Monzo announced earlier this month that it is teaming up with fellow UK challenger bank OakNorth to offer cash ISAs to its clients; FT Alphaville did a little digging into this relationship and found that there is a significant difference between the savings rate earned at Monzo versus going direct to OakNorth, up to 40 basis points; Monzo is earning 20 basis points from each account and the remainder is being pocketed by OakNorth; Monzo has built a reputation on being transparent and customer friendly and the author questions whether practices like this are sustainable. Source.
Peter Renton is the chairman and co-founder of Fintech Nexus, the world’s first and largest digital media and events company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series. Peter has been interviewed by the Wall Street Journal, Bloomberg, The New York Times, CNBC, CNN, Fortune, NPR, Fox Business News, the Financial Times, and dozens of other publications.