British start-up Mondo is launching a bank for the digital generation. Its accounts are accessed entirely by smartphone and come packed with features designed to appeal to millennials (aged 22 to 35).
- Instant Access: Customers will be able to open an account with Mondo in 30 seconds, compared with weeks for conventional banks.
- Nomadic Banking: The app knows when customers are abroad, so will never needlessly block their card. There are no overseas card charges and foreign exchange is passed on at cost. If a card is lost or stolen, users can instantly freeze their card from their phone and reactivate it if it is found.
- Easy Management: Payments are updated as soon as they are made and are clearly broken down on the app. Borrowing is made straightforward: users can opt in or out of overdrafts whenever they need to, and there are no bank fees for bounced payments.
- Custom Add-Ons: Mondo's app and IT system have been designed with third-party providers in mind. Customers will be able to invest their leftover cash at the tap of a button by linking up to other disruptive services such as Nutmeg or Funding Circle.
Mondo recognises millennials' lack of trust in financial institutions, and has based its marketing and business strategy on openness and transparency. Fees are relatively low and clearly laid out. The company's crowdfunding campaign will go public on March 1, and its official launch is planned for Q4 2016.
For the latest on disruptive fintech companies and how conventional banks are fighting back, see Breaking Banks: Wired Money 2015 and Bank Marketing Strategies.