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I'm not sure that this profile of expenditure and costs before turning a profit is any different from any new startup. Whether this is a "high price" is open to debate but we shouldn't forget that Monzo is building a new core banking system that is truly digital while growing a loyal customer base.

Yes the test will be whether it can produce a profitable business model but to suggest that it is next to impossible to make money with current accounts ignores the fact that a model without branches and lots of staff is quite different to the models of the legacy banks. Monzo will be lending too so it's far too early I think to be pessimistic.

Since there aren't a million different sort codes in use the headline is a little misleading. Possibly a change of sorting codes for a million customers?

Device and operating specific security that is not on mobile. Is this progress? How many Windows 10 devices actually have IR capable cameras? I really don't see this taking off. 

Monzo has over 100,000 "alpha and beta" testers at the moment (not 12,000) so users understand that the service won't be 100% all the time. The transparency with which they operate and speed of response though rather puts the traditional Banks to shame.

The moment there's an issue the App explains the situation and users don't have to take to Twitter to find out what is wrong. 

On what basis is this a mature market?

It would be interesting to know what NAB classifies as a "Digital channel".

It's also important to note that "interaction" and "transaction" are not necessarily the same thing. The headline of 95% transactions being digital may not be right is if all NAB is talking about here is engagement between the customer and the Bank (Phone calls, branch visits, internet use etc.) rather than transactions processed.

Clarity please Finextra.

So do Tesco use two factor authentication or was customer convenience more important? 

The solution is simple and doens't involve cumbersome pin pads. Just stop allowing card details to be used online or any time the card isn't present. Just end card not present. Simple but it will take commitment bythe networks which won't happen if they are allowed to pass on fraud loss costs to Banks and merchants.

Mastercard, VISA et al need to stop trying to perpetuate poor practices established 50 years ago before we had mobiles and the web and produce a new token based method of allowing customers to shop online. The 16 digit card number also needs to go as we're going to run out of card numbers soon if every time you buy online a separate "virtual card number" is generated. It's only really ten digits anyway so there won't be enough numbers to go around unless we move to alpa numeric.

An app based solution which identifies the user by their biometrics and generates the code to make the transaction without the consumer having to enter card numbers and expiry dates is where we ought to be. That wouldn't be too costly to build or deploy and may actually capitalise on the trend to mobile rather than lag behing it with fat finger unfriendly 3D Secure.

The networks need to deliver this and their member banks should be demanding it.

You wouldn't start from here.

(Last night my card details were compromised for the fourth time in as few years and the Bank has stopped my card and is replacing it. All totally pointmess as the new card is no more secure online that the one they cancelled. What is really annoying is that they say that I can't continue to use AndroidPay until my new card is registerd despite AndroidPay not using the compromised number. Come on guys the token hasn't been compromised the card number has!)

Well at the moment it seems that I can't use Android Pay because "Google is unable to verify that your device or the software running on it as Android compatible". The problem seems to be that Google doesn't recognise Android 6.01!

Hope they can fix this fundamental flaw.

Think you may need to correct what you say. The article you link to about HSBC is clear that its systems were NOT breached. It says "The bank tweeted that its personal internet banking portal suffered a "denial of service" attack, but that it had successfully defended the system against a potential data breach."

It is not correct therefore to say "the banking giant experienced multiple breaches at the start of this year".