The Netflix of banking

“Fintech” entrepreneurs are developing apps for people who don’t like the way banks work.

Banking is broken, according to many mobile tech entrepreneurs. And the City of London is the place where the banks of the future might take off, reports Bloomberg.

One of the entrepreneurs leading the charge is Tom Blomfield, founder of Mondo, a smartphone bank that is applying to operate in the UK. Blomfield has many complaints against banks: it takes hours to open an account or apply for a loan, fees are huge for using your credit card abroad, overdraft charges are exorbitant and mobile apps are clunky. “I wake up and say: ‘My bank is so bad. These guys are dinosaurs!’” Blomfield told Bloomberg.

In Blomfield’s view, today’s banks are the equivalent of Blockbuster Video, while digital startups are like Netflix. He wants to make banking “as easy to use as email,” reports Bloomberg — better suited for a demographic that “values being able to do everything over a mobile phone in five seconds.”

The Mondo prototype app is “is designed to tell you if you mess up,” reports Bloomberg. If you lose your Mondo card, it will let you turn the card off and turn it back on if you find it. It can even block your credit card payment capacity in a specific pub. If you need to borrow money to make it to payday, it will let you know how much a short term loan will cost, instead of charging you after the fact.

Ever since George Osborne, who has been characterized as “a real tech geek,” became Chancellor of the Exchequer, bank startups have been looked on more favourably in England. In a speech last year, Osborne said he wants to make London the “fintech capital of the world” and expects the Bank of England to grant at least 15 new licences in the next five years.