Monzo CEO Tom Blomfield says big banks are saddled with outdated tech and a risk-averse culture.
"You've got massive technology problems and massive cultural problems," Blomfield said of the traditional banks. "I don't think that people in banks are necessarily incentivized to think about the customer in the right way."
He added: "You add on 100,000 staff. How do you transform that whole thing? I think it's very, very tricky."Blomfield blasted the big banks' approach to tackling the threat of rising competition from the fintech players, saying their method is often to spin out a part of the institution and "send them off into a trendy office with exposed brickwork, Converse and Ping-Pong tables.
"Banks are set up to prevent change basically," he said. "A lot of the systems inside the bank — particularly risk and compliance functions — are there to stop things changing. Because if things change it creates risk. And so they're like these antibodies that go around hunting out change and trying to kill it."
"Starting from scratch presents its own problems but it's in a sense easier to create a culture that's well aligned to creating something new," Blomfield added. Monzo and its peers have raised huge sums of cash and notched multi-billion dollar valuations thanks to the willingness of venture capitalists to fast-track their growth. N26 last year
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