App-only bank, Mondo, has been valued at a whopping £30 million after a £6 million cash injection from various investors.
The innovative bank is only available as an app for mobiles; it is yet to secure a banking license and be fully launched to the public. The app is currently being tested on a group of 1,500 people, and has a further 30,000 signed up to a waiting list ahead of its launch later in 2016. Their recent round of funding came from financing companies, consisting of venture capital firm Passion Capital, who gave a generous £5 million, and a campaign on crowdfunding site Crowdcube, with a goal of £1 million.
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The founder and CEO of Mondo, Tom Blomfield, stated that “… [We] were initially going out to reach £4 million and we increased that to £6 million because there was so much demand…”. The amount of interest shown towards the idea of FinTech and a mobile-only bank is clear; many other digital-only banks have been making the rounds recently, including Atom Bank, Starling Bank, and Tandem Bank – all of which are still yet to launch to the public.
Blomfield says that the money raised is going to be put towards extending Mondo’s pilot card scheme; 1,500 pre-paid cards that are linked to the app have already been rolled out, but the goal is to have 50,000 or 100,000 in circulation by the end of the year. This is highly likely, as the Mondo team seem extremely ambitious; “The ability to build a company the size of Facebook or Google in the banking space – that’s the opportunity we’re going after here.”