Mobile bank to crowdfund £20m after securing licence

Mobile bank to crowdfund £20m after securing licence




Challenger bank Mondo has announced plans to use crowdfunding to help it to raise up to £20m.

This will be the second round of crowdfunding launched by Mondo, after raising £1m in just 96 seconds earlier this year.

Mondo needs to raise the investment capital required for life as a full bank after receiving a restricted banking licence from the Financial Conduct Authority (FCA) on 11th August.

Under its current restrictions, Mondo can only hold a maximum of £50,000 of deposits in total, though the bank hopes to launch a full current account in the first half of 2017.

Mondo now has 12 months to meet a number of criteria in order to be granted full authorisation.

These include building connections to the main payment networks that Mondo will support, such as MasterCard, Bacs and Faster Payments.

The bank is also improving its Android app in order to match its iOS software, while seeking a new head of compliance, head of lending and head of risk.

In June, it was revealed that Mondo had been legally challenged to change its name by an undisclosed company.

Earlier this month, the bank celebrated having over £20m spent via its card.

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