Monzo Says Overdrafts Can be Used for Investing but not Encouraged
UK based digital bank Monzo responded to an article in The Times referencing the fact that customers can use overdrafts to invest in the bank’s crowdfunding round; Monzo CEO Tom Blomfield said this is possible though the bank certainly does not encourage it; AltFi cites a blog post by Mr. Blomfield, “When our crowdfunding round opens next week, our customers can choose to invest in Monzo. And, as is the case with all their purchases, they can use their Monzo overdraft to do this, as well as the overdraft of any other bank accounts they have. But again, we wouldn’t encourage anyone to do so.”; he also doesn’t believe it is the bank’s responsibility to restrict how people use their loans. Source.