The security of your funds is extremely important to us. In order to ensure funds in Monie accounts are safe, we have put the following protections in place:
Two-factor authentication (or 2FA) is an added security layer to protect your account against fraudulent login attempts. With 2FA activated on your account, you log into your account in two steps. In addition to entering your username and password, you will have to verify your login attempt through your phone.
Monie supports 2FA provided by Google. To use it, you will need to download the Google Authenticator app to your phone.
When you attempt to login into your account, Monie will show you a QR code, which represents a secret key. In order to successfully log into your account, you will need to scan this code using the Google Authenticator app on your phone.
In order to pay our customers interest on a monthly basis and to meet withdrawal requests on a timely basis, we engage in a number of activities, including (1) keeping a material amount of funds available for withdrawal with our custody partner; and (2) applying risk management to the lending activities in the institutional market.
In order to securely store and transfer customer funds, we work closely with our regulated partner.
As a federally licensed money service business, our partner is constantly being financially audited to ensure that all funds that have been deposited in Monie accounts are stored securely.
The credit risks to the borrowers are mitigated by credit due diligence and/or collateral. We lend only to trusted institutions, most of which are regulated by government institutions such as the SEC.
And we typically only lend on collateralised or over-collateralised terms based on the borrower's credit risk. This means that for every USD lent, the borrower must hand over another asset worth at least the amount of the loan. This collateral is only returned to the borrower once the loan is fully repaid. This minimises the counterparty risk.
The Monie interest account is not a bank account. Interest rates, withdrawal limits, and fees are subject to change and are largely dictated by market conditions.