The media is having a field day with this. Which isn’t good as people will irrationality abandon ship and move their money elsewhere.
My best guess is that 99% of customers will be blissfully unaware that any of this has happened. As long as it’s not mentioned on ‘This Morning’ or ‘Loose Women.’
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And I’ll be hoping that there won’t be too many people who use Monzo as a spending account and decide that actually they’ll take their £1k balance back out to their old account and leave £10 in Monzo instead.
to be fair, I left £100.
Actually salaries don’t look that bad if you take average employee numbers:
2019 - avg employees 437 @ £19m = £44k avg salary
2020 - avg employees 1128 @ £54m = £48k avg salary
(using end-of-year total employees of 713 grown to 1495 makes salary growth look worse)
The media are having a field day with every bank it’s not unique to Monzo, yes Monzo are newer and don’t have the big cash reserves but I’ve not seen an article about any bank this week that’s a positive in relation to losses.
NatWest have just posted a 1.3 billion loss
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You know all balances are ringfenced and FSCS protected? They would never use customers deposits to pay wages.
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That’s complete nonsense.
Customer deposits are entirely matched by cash held at the Bank of England and holdings in UK Gov’t bonds.
It’s practically impossible for either of those institutions to default given they own £ printing presses.
As people have already flagged up, UK banks will lose tens of billions of pounds this year but, despite that, the banking sector is still about three times stronger than it was ten years ago.
Suggesting there is any risk for bank customers is scaremongering, pure and simple.
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That’s true, but as a newer bank, I think that Monzo have had to work harder to assure consumers that their money is safe and protected.
Therefore, I think that sort of scrutiny has a chance to do a bit more damage to Monzo than the more long established banks.
Yeah, because long established banks are so trustworthy…
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How long does that take? FSCS guarantee is fine if it’s just a bit of Spare Cash that you want to claw back. I wouldn’t want any amount of meaningful savings tied up in that process. I know it’s guaranteed up to £85k - but would you want to be relying on lawyers and the financial conduct regeime to be reconciling 4m accounts and returning cash to alternative bank accounts?
It’s supposed to take up to 7 days if I recall correctly. But I don’t think it’s been tested in the real world.
Don’t keep all of yourself eggs in one basket, if at all possible, is generally good advice in any case.
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There wouldn’t be any cash to return and you wouldn’t need to use FSCS.
The administrators would be called in, they’d run Monzo for a few months and probably just give everyone notice that their accounts are due to close so they should withdraw their cash.
Clearly this isn’t advice but I’d be willing to bet a lot of money on that being the process in the very unlikely event of Monzo’s insolvency.
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About as long as it takes to create a community account and post some scaremongering garbage online.
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Really? You get your cash back in 2 mins?
personally I’m moving my cash out of the Paragon savings pots, partly on the lower rate and partly on the AR. If you want to vilify users for that then feel free.
Paragon are a different company. Your cash would be safe with them whatever the AR stated or happened to Monzo (even though it is also safe there).
Monzo is highly regulated as a new bank so if there was an issue the Bank of England would have already stepped in. Aside from auditor incompetence (as seen with Wirecard) it is extremely hard for retail banks these days to fail in the UK without it being noticed. The Coop Bank, for example, almost collapsed a few years back when it almost ran out of money and the Bank of England supervised them until they got back on their feet. Banks are regularly stress tested against exposure to money liquidity problems.
As someone posted above, NatWest have lost £1.3 billion in one quarter (3 month period) of this year alone and £770m in the first half of the year in total. No one is running from them. Monzo has enough money to last - it raised money only a few months ago.
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I look forward to Annual Report 2021 and revisiting this thread for comparison.
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Yes I know but why bother with the hassle if it falls over when you can transfer it all out in seconds?
Not sure why you mention wages when I have not suggested they would use them to pay wages?
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In Q1, at any rate, people were running to them.
https://www.wearepay.uk/wp-content/uploads/Q2-Dashboard-2020.pdf
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Because there won’t be any hassle. Even if the shareholders weren’t prepared to continue the bank would be sold to another company and the accounts would continue as normal.
If you’re gonna run from any bank making losses this year then you might have trouble finding one for your money full stop.
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Dude - your passive aggressiveness is blunting my mellow. I’ve explained my position - it’s clear it’s shared by quite a few other people.
You have a good day.
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