Money, investing, mutuals etc
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Constantine wrote:So when they say "we have customers who have £130m of outstanding debt - therefore we have easy access to further demand for our money" they are doing nothing more than signalling the potential for future lending to these customers...
in fairness to them, they didn't say that.. they are my words
. i get your point though.
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Some of us remember Interweb Mk1, and how Egg Banking was going to sweep all before it.
That's a decent analysis. They hammered me to go in with the crowd funding in this last round, but the immediate benefits - "ChipX" - were not really worth it in a world of p2p finance.
I assume that they will build a userbase and then go for a sale or a merger into one of the other challenger banks, like Monzo, in the mid-term. The idea - small savings from each account without anyone noticing - is as old as Superman II and there is a place for it, but it's very easy to copy and, in fact, Monzo already do something similar with thier own 'Coin Jar' feature but, for example, Chip just took £1.50 from my Co-op account yesterday - I'm not sure how that can be profitable longer term, when a Direct Debit costs 5-10p ish to process and they've no immediate income other than this crowdfunder. It makes more sense for a bank to set up the idea themselves.
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You're probably thinking of Superman III (one of several movies that feature electronic penny shaving
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