Monzo, the smartphone only challenger bank raised £1 Million in 96 seconds in it's first crowdfunding round in March 2016, which was the fastest crowdfunding round ever.

The company's most recent crowdfunding campaign raised £70 Million and the co-founder of Instagram, Kevin Systrom is an investor. 

But what is the secret behind Monzo's success? Unlike some other banks, there is no cash incentive to join and users do not receive interest on the money you have within the account. However, the company now has half a million users in the UK, who have spent more than £800 Million through the service since launch in 2005.

Some of Monzo's success could be attributed to the fact that users receive foreign exchange for free when using the supplied debit card to make purchases overseas.

In addition,  the automatic categorisation of expenses could form a significant part of Monzo's attractiveness as a platform.

Monzo is just a small part of the changing face of consumer banking however.

The banking industry is set to experience a big change in 2018. From the 13th of January of that year the open banking initiative will enable account holders to share their data with licensed startups. 

This will enable the development of new products and services utilising that customer data in addition to potentially disrupting the business model of the incumbent financial institutions. 

The open banking initiative has been described as banking's "uber moment" however, Martin Lewis of moneysavingexpert.com argues that major banks have the advantage, simply due to the fact that customers are relatively happy with the current situation and are unlikely to change.

There could be big changes in banking in the next few years, but having a sound understanding of your current financial situation and putting a plan in place for your future will always be important. Contact Westminster Wealth Management today.