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Comment by JamesBaxter | Hacker News Reader

Separate to the risks of investing, what are the risks of actually using Mondo as a bank?

I really like the idea but can't shake the worry of a huge financial loss is it actually possible?

I work at Mondo. We will be a member of the Financial Services Compensation Scheme (FSCS) and all customer deposits will be insured up to £75k per person.

During our current alpha test (and before we have a banking license), your funds are actually held by our partner bank Wirecard.

Edit: The internet beat me to it. My work here is done :)

This answer doesn't say anything about being better. Or even different. If someone asks the question "What are the risks of using this service?" and the response is "Here's the legal minimum we have to do" then that doesn't really fill me with confidence that you're trying to be better than my current bank.

That isn't to say you won't be better. Maybe you will be. It's just that your answer here gives no indication.

that legislation also only covers insolvency, what about IT failures (operational risk)?

what if your system messes up and a load of my payments suddenly disappear? or your IT staff didn't completely understand how, say Cassandra treats transactions?

I like my paper bank statements...

Right now it's backed by some prepaid card provider. Once they get a banking license, bank accounts will be protected under government regulations, so afaik as secure as any other UK bank.

Specifically UK bank deposits are protected up to £75,000 under the Financial Services Compensation Scheme. If you've got so much money that you have > £75k in a single bank for any length of time (house purchase etc aside) then you have a different order of problems.

http://www.fscs.org.uk/what-we-cover/eligibility-rules/compe...

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