11–20 of 176 posts
What's it's plan for making money. As I understood it current (checking) accounts don't really make any money, they're just used as loss leaders to lure in customers.
1) I need to have foreign currency accounts. My bank has them, but I'm unable to see the accounts when I log in. They've known about this for 4 months now, and I keep getting sent in circles by the Indian call centre. They've sent me to branch twice, with no coordination, the people in the branch can't help me either.
2) I need to have an end-of-year statement for my taxes. It seems someone messed up the SQL or something, because I have statements for every month, except the end of the year. They haven't fixed this either.
So I've started looking around for other banks, but most of the challenger banks don't do multi currency accounts.
I'm in the market for a new personal account as well. Revolut works just fine technically, but I don't like what's being said about them and I'd rather not support them now.
It would be nice to have business and personal together, but that seems hard to find among the challenger banks, since they seem to not do FX. (I've emailed several over the past week.)
Lastly TransferWise does Borderless, which seems like exactly what I need, but it seems to not be a real bank account. Certain online businesses require withdrawals to be to someone (or a business) whose name matches what they have as their account details, and that doesn't work with their scheme.
What's it's plan for making money. As I understood it current (checking) accounts don't really make any money, they're just used as loss leaders to lure in customers.
I believe their plan revolves around lending money and then charging interest on that (like typical banks). They already support overdrafts[1] on their app. [1]: https://monzo.com/features/overdrafts/
Additionally new regulations are coming in (in the UK) banning you from charging a daily overdraft charge [1], torpedoing it's one source of income, which doesn't jive with it's doubling in value in less than a year.
I'm very hopeful for Monzo, with some caveats. They have a lot of fascinating and useful DNA having gotten started in the UK before the US. The UK's regulatory environment for digital banking is leagues ahead of America's, w/r/t data access, APIs, etc. If they can persist UK style data features through their American rollout, they'll have something no other American bank currently offers. While my strong suspicion is…
Because as a UK customer I see no reason to switch after trying Monzo for a couple of months.
Positives:
- a nicer mobile banking app
Negatives:
- no credit cards and no option to top up using a credit card from another bank
- no physical branches
Everything else is comparable to most other banks in the UK. Which isn't bad, just nothing worth switching banks for.
What's it's plan for making money. As I understood it current (checking) accounts don't really make any money, they're just used as loss leaders to lure in customers.
What's it's plan for making money. As I understood it current (checking) accounts don't really make any money, they're just used as loss leaders to lure in customers.
- Partnership/Affiliate revenue by way of their "marketplace" initiatives. They get a cut of recommending services for customers. Recent examples include new utility (electricity) providers. [2] Also interest/savings accounts. [3]
- Monzo Plus - "premium" banking features such as virtual cards, metal cards, access to a curated "cheaper" market place [4]
- Monzo Business - business banking, initially focused on small - medium sized business with invoicing, payment and tax management built in [5]
- core lending as other customers have pointed out
[1]: https://monzo.com/annual-report/2018/ [2]: https://monzo.com/blog/2017/09/21/testing-energy-partnership... https://monzo.com/blog/2017/11/16/monzo-marketplace/ [3]: https://monzo.com/blog/2018/11/01/savings-pots/ https://monzo.com/blog/2019/05/02/shawbrook-savings-pots/ [4]: https://monzo.com/plus/ [5]: https://monzo.com/business/ https://monzo.com/blog/2019/06/24/business-banking-update/
What's it's plan for making money. As I understood it current (checking) accounts don't really make any money, they're just used as loss leaders to lure in customers.
There are tons of product they can come up with, like insurance, mortgage etc. So making money won’t be a problem with this growth rate I believe.
Monzo also have more customers than banks like Metro, which was older and more invested than Monzo at the time.
What's it's plan for making money. As I understood it current (checking) accounts don't really make any money, they're just used as loss leaders to lure in customers.
we're currently making money from interest charged on loans that we make to our customers, from interest that the central bank pays us on our deposits, as well as from interchange that we earn when our cards are used. this is what most banks do (except they also make lots of money from fees that we don't have)
there are several other ways we'll make money and we just started experimenting with a few of them. we launched a premium account that charges a monthly fee [1], we operate a savings marketplace in which we earn a commission [2] and we help people switch their bills to a cheaper provider if they are currently overpaying [3]
we release our financial statements every year and new ones are coming out soon. feel free to have a dig then :)
[2] https://monzo.com/features/savings/
[3] https://monzo.com/blog/2019/05/08/switch-energy-supplier-thr...
What's the state of account switching in the US? I'd have thought a big part of Monzo's strength in the UK is the mandated account switching service:
https://www.currentaccountswitch.co.uk/
Is there an equivalent system in the US to reduce the friction of switching banks?