Monzo, the fastest growing bank in Britain by new current accounts, has been accused of “going beyond the pale” by allowing its customers to get into debt to buy its shares.
The digital mobile-only bank is aiming to raise £20 million through the crowdfunding website Crowdcube and its own mobile phone app. The prospectus for the keenly awaited capital raising, which is scheduled for next week, shows that it will allow eligible customers to go overdrawn by up to £1,000 to buy its shares.
Allowing customers to borrow money to buy shares has raised eyebrows among some consumer groups, especially as the unlisted Monzo shares are untradeable, so there is no way they can be sold to pay off the overdrafts.