Some really well thought-out posts here, which I really appreciate.
I can certainly believe we don’t yet have the right model, and I’d really value your input to help us get it right. I don’t think there’s a clear cut answer, as the debate here probably shows.
For the moment, I’d encourage everyone to see this less as “Monzo sets long term overdraft pricing” and more like “Monzo trials a new product with a few hundred people for a couple of months.” We’ll be gathering more feedback as we go, and we won’t make any decision without properly consulting the community.
I would love to do some medium-term trials with significant sample sizes (I guess 6+ months with 30,000 people) to see how different pricing models actually change behaviours. I’ve been reading a lot of stuff from Thaler and Benartzi recently, and I wonder if we can support them with some empirical research. We’d need to think through the ethical and regulatory considerations properly first.
In the shorter term, we’d love to talk to as many of you here as possible, either over the phone or face-to-face at our office in London. You’ve obviously thought about this subject a lot, and we’d love to get your input as we decide what pricing options to trial next.
I’m supposed to be on holiday from yesterday, and my girlfriend is going to lose patience if I don’t stop spending all my time on the community forum debating overdraft pricing! I’m about to head into the Italian hills on a bike, so I’m going to hand over to @tristan (who is back at work on Tuesday I believe) and @naji to organise these feedback sessions over the next few weeks. I’ll be online again on the 4th September.
Even though we don’t always agree, I’d like to thank you all for caring enough about other people’s finances and wellbeing to turn up and have the debate.