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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

#91

Post by Nextgrid »

raesene9 wrote: post #86
jozvolskyef wrote: post #80

Earlier quoted context omitted.

I would try Monzo, but all I get from them is > Unfortunately we can't offer you a Monzo account > We're afraid we can't go into more detail about why we can't offer you an account. > We assess every application using details you've given us, and any information we get from the credit reference agencies we use (Experian and TrnsUnion) or from anti-fraud services like Cifas. Starling is the same. As a debt-free UK res…

The problem of lacking credit history has been around for a long time, I remember getting a credit card, which I paid off in full every month, just to increase my credit score ~ 20 years ago. For people without a good credit history in the UK there is meant to be "basic bank accounts" which don't require credit checking as they don't offer overdrafts ( https://www.moneyhelper.org.uk/en/everyday-money/banking/bas... )…

As far as I know the aforementioned banks merely check for a credit bureau record (and absence of any fraud markers) to use for KYC as opposed to for credit eligibility, so if he's being rejected for those his problem is not creditworthiness but the complete lack of CRA record. It's unlikely he'll qualify for any credit card with absolutely zero records.

His best bet is to open an account at a brick & mortar bank which will be able to verify his identity using physical documents and not only skip the CRA check, but actually create a CRA record (which can be a good or bad thing depending on your opinions regarding privacy). After a year or so, he should become eligible for those accounts accounts (if the lack of CRA record is truly what caused them to reject initially) and even qualify for a credit card if needed.

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

#92

Post by Nextgrid »

jozvolskyef wrote: post #80
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 would try Monzo, but all I get from them is > Unfortunately we can't offer you a Monzo account > We're afraid we can't go into more detail about why we can't offer you an account. > We assess every application using details you've given us, and any information we get from the credit reference agencies we use (Experian and TrnsUnion) or from anti-fraud services like Cifas. Starling is the same. As a debt-free UK res…

If you want another option, check out TransferWise - they should be able to open you an account as well.

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

#93

Post by ralphmelish »

berdario wrote: post #83
ralphmelish wrote: post #69

Earlier quoted context omitted.

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.

Non-resident accounts exist (though they are generally more expensive), and several countries don't even require any proof of residence (i.e. you can open a bank account while on a tourist visa)

I know they exist, but they are not the norm. They even call them 'international bank accounts' in most cases (I think HSBC calls it that, or Barclays). Most common bank accounts will require proof of address in the respective country. I don't think it is expected to specify all that in the app description.

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

#94

Post by heurisko »

ralferoo wrote: post #78
oakesm9 wrote: post #70

Earlier quoted context omitted.

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

The irony is that Starling is consistently the better bank, from my perspective. I started off getting Monzo when it advertised itself as a pre-paid debit card and it's big selling point was free foreign ATM transactions. I never actually used it all that much (I've been with them about 5-6 years, and maybe done about £1000 total foreign withdrawals). At some point when they introduced limits, there was a post on the…

> It's telling that I've never felt comfortable trusting Monzo with my salary, because it always feels like it'll fold any moment

In which case you will be protected up to £85,000 by the FSCS.

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

#95

Post by nsteel »

calcifer wrote: post #89
jozvolskyef wrote: post #80

Earlier quoted context omitted.

I would try Monzo, but all I get from them is > Unfortunately we can't offer you a Monzo account > We're afraid we can't go into more detail about why we can't offer you an account. > We assess every application using details you've given us, and any information we get from the credit reference agencies we use (Experian and TrnsUnion) or from anti-fraud services like Cifas. Starling is the same. As a debt-free UK res…

> the only bank that is willing to do business with me is Revolut. That's because Revolut isn't a UK bank. Until very recently (less than a year ago), it wasn't a bank at all anywhere. Unlike Monzo, Starling et al. (which are UK banks) Revolut is an "electronic money institution" and hence your balance isn't protected by the Financial Services Compensation Scheme (FSCS).

I didn't realise this. Why would anyone accept this risk and use Revolut as anything more than a place for pocket money while abroad?!

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

#96

Post by nsteel »

berdario wrote: post #82
ralphmelish wrote: post #74

Earlier quoted context omitted.

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.

That doesn't mean that it's closed to non-residents.

Don't all UK banks require a UK address?

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

#97

Post by shrikant »

sonthonax wrote: post #38
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.

Because Monzo will pay more than Google or Amazon in the UK.

This hasn't been the case in my experience interviewing at all of those three -- both Google and Amazon's comp for a similar role and level at Monzo were way higher.

Edit: to clarify, I didn't actually end up interviewing at Monzo because the recruiter said no pretty much right away on hearing my salary ask.

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

#98

Post by jozvolskyef »

Nextgrid wrote: post #91
raesene9 wrote: post #86

Earlier quoted context omitted.

The problem of lacking credit history has been around for a long time, I remember getting a credit card, which I paid off in full every month, just to increase my credit score ~ 20 years ago. For people without a good credit history in the UK there is meant to be "basic bank accounts" which don't require credit checking as they don't offer overdrafts ( https://www.moneyhelper.org.uk/en/everyday-money/banking/bas... )…

As far as I know the aforementioned banks merely check for a credit bureau record (and absence of any fraud markers) to use for KYC as opposed to for credit eligibility, so if he's being rejected for those his problem is not creditworthiness but the complete lack of CRA record. It's unlikely he'll qualify for any credit card with absolutely zero records. His best bet is to open an account at a brick & mortar bank whi…

Thank you for your insightful comment explaining how the CRA process works. I'm not interested in credit, but it is good to know that it takes a year merely to qualify for a score.

Last year, I stuffed every document I owned into a folder and went to a brick & mortar bank to open an account. No dice. The customer adviser went through some kind of a decision tree and told me that my best bet is to apply for benefits if I am eligible, saying that I just need to show them some letter without claiming the benefit. It is absurd. If wearing an ankle tag for a month to prove my address was an option, I'd go with that.

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

#99

Post by Nextgrid »

jozvolskyef wrote: post #98
Nextgrid wrote: post #91

Earlier quoted context omitted.

As far as I know the aforementioned banks merely check for a credit bureau record (and absence of any fraud markers) to use for KYC as opposed to for credit eligibility, so if he's being rejected for those his problem is not creditworthiness but the complete lack of CRA record. It's unlikely he'll qualify for any credit card with absolutely zero records. His best bet is to open an account at a brick & mortar bank whi…

Thank you for your insightful comment explaining how the CRA process works. I'm not interested in credit, but it is good to know that it takes a year merely to qualify for a score. Last year, I stuffed every document I owned into a folder and went to a brick & mortar bank to open an account. No dice. The customer adviser went through some kind of a decision tree and told me that my best bet is to apply for benefits i…

> but it is good to know that it takes a year merely to qualify for a score.

Technically it doesn't - banks leak your details to CRAs upon every major interaction (account application, etc) and regularly confirm them if they have a continued relationship with you (if you have an account open they'll typically report the status of the account every month).

However other banks may still be suspicious of a brand new record and might want to wait a few months before trusting it (since if the record was created fraudulently, it will usually get discovered and rectified pretty early - if the record is there for a long time, either it's legit or the fraudster has done an above-average job). The "one year" number is purely arbitrary but feels fair to me, that's probably what I'd do if I was building such a system (though I'd also build an escape hatch to allow people to confirm identity differently without CRA scum being involved).

Furthermore, in the UK there is no concept of "credit score". It's a myth perpetuated by the CRAs just so you obsess over that meaningless number that they can tweak every month to give you a reason to keep coming back and look at their "offers". In the UK, lenders get your raw report (aka identity, address history, recent credit applications and their status, open accounts, etc) and then make a decision internally based on their own algorithms.

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