Public banking is a tough crowded market.. most banks would get rid of their public divisions if given the chance, some just keep it open as a lost leader to keep their band in mindset of the publc.
Supermarkets have started closing/selling off their divisions… the amount of profit involved pales in comparison to other financial selectors, like private banking, mortgages and insurance.
A bank could profit over 50 million by acting as the underwriters in a single company merger/takeover.. how many loans, credit card and overdraft fees from the public would it take to make up that amount? Then there’s the bad debts, fees being sold to debt collectors just to recoup some of the money.
There’s plenty of well established banks already available to purchase into.. monzo may have the edge tech wise, but they are a much smaller operation and can move quicker, but I don’t think any of the bigger banks are worried about them, otherwise they would just buy them out.