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How we got customers to sign up to Monzo in the early years

tomblomfield.com

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Re: How we got customers to sign up to Monzo in the early years

#61

Post by madeofpalk »

danpalmer wrote: post #48
stephen_g wrote: post #16

Earlier quoted context omitted.

Do they lend? That’s where basically all of a bank’s profits come from, deposits are just there mostly as low-cost liquidity (and because creating deposits and the flows of inter-bank transfers are all part of enabling lending to happen). So I’m always surprised that lending and credit isn’t the core strategy of these banks - there’s very little money to be made in fees…

There's not even that much to be made in most lending (by transactions). Lending through overdrafts doesn't make a lot as it's typically lending to customers who are least able to afford it. Mortgages and credit cards are the big ones, and Monzo does neither. However I would like to see a credit card from Monzo.

Monzo does have Buy Now Pay Later now, for whatever that's worth.

Re: How we got customers to sign up to Monzo in the early years

#62

Post by chrisseaton »

sethjr5rtfgh wrote: post #55
chrisseaton wrote: post #30

Earlier quoted context omitted.

I’d you have offers from Google and Amazon then why are you interviewing at a place like Monzo? They can probably tell you’re both wasting your time so rejected you on that.

So let me ask you. Is the only reason that you're at Shopify that you couldn't get an offer from Google or Amazon?

I did apply to Google before and didn't get an offer so yes I guess that is literally true.

Re: How we got customers to sign up to Monzo in the early years

#63

Post by mojuba »

shantnutiwari wrote: post #54
mojuba wrote: post #39

I was one of the early adopters. Monzo felt fresh and exciting back when it started, kind of like Google in its early days. But I later switched to Revolut and never looked back. I was driven purely by intuition and no particular reason. While trying to understand why, I thought it was probably because there was too much PR and fuzz around Monzo as an "ethical business" and little action. You don't just talk about be…

I gave up on Revolut after scandals about its CEO and financial shenanigans; and the many customer service nightmares. In banking, boring is better

> In banking, boring is better

Exactly, you don't want to hand your money to a fancy organization that experiments with its PR and god knows what it does behind the scenes.

Never heard about the scandals though, do you have any links?

Re: How we got customers to sign up to Monzo in the early years

#64

Post by nly »

mojuba wrote: post #39

I was one of the early adopters. Monzo felt fresh and exciting back when it started, kind of like Google in its early days. But I later switched to Revolut and never looked back. I was driven purely by intuition and no particular reason. While trying to understand why, I thought it was probably because there was too much PR and fuzz around Monzo as an "ethical business" and little action. You don't just talk about be…

The Revolut app is a hot mess though.

Monzo have kept theirs clean l, focus and and useful.

Re: How we got customers to sign up to Monzo in the early years

#65

Post by surfer7837 »

lysergia wrote: post #58

I downloaded Monzo on the Play store and installed it. During registration it asked for personal data like my address etc then proceeded to tell me it’s a UK only app. I was shocked. I’m in the EEA and thought I could use the app. It should be clear in the app’s description that it’s a UK only affair. I imagine this has happened to many more people other than me.

Kind of hard to determine if you're a UK tax resident without some details, no?

Re: How we got customers to sign up to Monzo in the early years

#66

Post by nly »

danpalmer wrote: post #5
substation13 wrote: post #2

How do they make money?

The short answer is that they don't really. UK retail banking is notoriously low margin, and all of the major banks struggle to make anything from their consumer businesses. Charging for bank accounts is not something the UK market accepts. They'll likely cover costs in the long term, and their business banking will probably do fine, but I suspect the valuations aren't justified. The main way that the major players m…

I see plenty of people with blue Monzo+ cards.

I think since app dominated baking became a thing a lot more people are paying for premium accounts.

Imho they all offer poor value for money though

Re: How we got customers to sign up to Monzo in the early years

#68

Post by lysergia »

surfer7837 wrote: post #65
lysergia wrote: post #58

I downloaded Monzo on the Play store and installed it. During registration it asked for personal data like my address etc then proceeded to tell me it’s a UK only app. I was shocked. I’m in the EEA and thought I could use the app. It should be clear in the app’s description that it’s a UK only affair. I imagine this has happened to many more people other than me.

Kind of hard to determine if you're a UK tax resident without some details, no?

There’s no mention of it being a strictly UK affair in the app description. I imagine 100s of people download it each day, fill in the form and then bail once they realize it’s UK only.

Re: How we got customers to sign up to Monzo in the early years

#69

Post by ralphmelish »

lysergia wrote: post #58

I downloaded Monzo on the Play store and installed it. During registration it asked for personal data like my address etc then proceeded to tell me it’s a UK only app. I was shocked. I’m in the EEA and thought I could use the app. It should be clear in the app’s description that it’s a UK only affair. I imagine this has happened to many more people other than me.

It is not a simple app, it's a bank. Not sure how you expect to open a UK bank account not living in the UK...

Edit: I've just checked the description in the Play Store and it says 'Open a full UK bank account'. Maybe that is new, but it is pretty clear.

Re: How we got customers to sign up to Monzo in the early years

#70

Post by oakesm9 »

robertlagrant wrote: post #46

> First, a note about the context. We started the company in the UK in February 2015, when “digital banks” weren’t yet a popular idea. BankSimple had launched in 2012 with some big plans, but sold to BBVA in early 2014 with about 100,000 accounts, having struggled to raise sufficient funding to continue. N26 started development in late 2013, initially as a card for kids, while Revolut was founded a few months after M…

Before starting Monzo they attempted a hostile takeover of Starling but we’re rebuffed by the founder. Tom took basically all The staff and started Monzo, so I can imagine he doesn’t want to draw too much attention to it.

Anne Boden’s book is worth reading if your interested in the early history of digital first banks in the UK

https://www.goodreads.com/book/show/51007680

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