Bank Zero To Have Zero Debt Review?
Bank Zero Launches
After delaying for nearly 3 years Bank Zero has finally opened their digital doors this month.
At present, there is a waiting list to open accounts as people rush to join the new digital bank which is trying to focus on business banking.
Bank Zero says they have delayed their launch to ensure that their digital offerings for small to large businesses are just right. While focused on business banking they will also have smaller accounts for those just looking to save though this will not be their focus.
No Debt Review?
Bank Zero have also said they are not looking to get into offering clients any credit facilities (at this time). Their banking license allows them to do so but they feel that portion of the market is already flooded and comes with high risks. This could then, potentially, mean they will not need a massive debt review department (or outside service provider) like all the other banks.
‘This could then, potentially, mean they will not need a massive debt review department… like all the other banks’
Like many of the other newer digitally focussed banks, Bank Zero is not charging clients large fees to have accounts. They will provide many services for free. They will for example, not charge fees every month to have an account.
You may wonder if they are not heavily into the credit market then how will they make money?
Well, they do make a small portion on some transaction costs and when offering consumers certain services they will earn a commission (eg. if you buy electricity or airtime through their platform). They also make a small margin on interest on funds deposited.
It seems their low physical world costs and heavy reliance on software helps them reduce their overheads making it possible to operate with smaller margins and even no fees for many of their services.