I am probably one of the 13% who make up 85% of the cost. The sole reason I have a Monzo card is for the cheap rates abroad for cash and payments. I also was expecting this change to come at some point but it may results in me leaving to a cheaper provider. Could Monzo raise additional funds allowing it to continue to grow its user base…once a banking licence is obtained this cost can be offset against lending revenue streams available in the future…?
Make it free for users that deposit above £200 a month into their account. Then charge the rest of users one of the fee options that you mentioned.
This way the normal users haven’t lost out to the newcomers who mainly only use Monzo for abroad.
Simple.
Option Three, with tiered rates, 3% for EU travel is to much compared to the likes of other new banking services (e.g. Revolut)
EU: 1-2%
RotW: 3%
Option 4:
Loyal customers would have their free £200 allowance increase for continued usage in the UK. For example allowing a certain amount of your free allowance to roll over for each month you don’t use it abroad.
still it’s only foreign ATM fees specifically - the awesome exchange rates and no fees on POS will remain, so it’s still hugely advantageous to use Monzo overseas
Why do you need cash for metro tickets in Singapore? The temporary ez-link card works just like the Oyster card, and you can top it up with credit/debit/ATM cards. You can use the card to pay for taxis and meals too.
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I had a similar proposal - for active UK users, free international withdrawals / use.
If I knew that you needed Uk activity to help make you profitable, then I certainly would have made more use of Monzo. I have pretty much kept it as a travel card.
I was one of the people attracted to Monzo because of the “No Fee” policy when abroad, I only travel abroad maybe twice a year and appreciate the money saving that Monzo brings me when I do travel, however, there are so many other things I like about Monzo that I would happily pay reasonable fees to keep this style of banking going.
I recently travelled to the states & used my card every day, several times a day and the savings overall on purchases at point of sale saved me a huge amount in fees over conventional debit card purchases and I am very appreciative of this, I think a fee to withdraw cash at ATM’s is fair and I am sure most people don’t really need a large number of cash withdrawals if their card is accepted for payments and purchases.
At the end of the day you are a business & you need to make money to survive, I have no issue in you charging a fee for ATM transactions and have happily voted Option 3 as this seems to be the best of both worlds and is very fair in my opinion. Keep up the good work Monzo Team and thank you for your way of banking.
Agreed however many countries still run predominantly on cash
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So are you likely to be using any future lending products, even if a competitor is cheaper?
The only reason for getting a Monzo Card was free Overseas ATMs The Card was recommended by Which
Are the ATM charges for Monzo new ? is this a change to the banking process ? NO
I think Banks are rip off merchants most senior banking staff are only interested in making money (at customers expense) so when I saw Monzo I was delighted to sign up and recommend it to every person I spoke to
Turns out Monzo is just another financial institution
Option 4 Maintain the terms you agreed with Customers when they signed up
Should you wish/need to change the terms for new customers then fine do it
Credibility and trust in the financial sector is very hard to find - for a short time there, with Monzo, I thought I had found it x
I don’t see how I can vote on this, the results show but I don’t see a vote button. I guess its possibly finished.
I prefer option 3, however £200 is a little low, I seldom travel and would prefer a slightly higher limit over a longer period, for example £200 per month could be calculated over the course of a 6 / 12 month period instead.
Monzo has a banking licence. I have a current account.
And no, the problem is the cost cannot be offset against the revenue stream.
If Monzo make money from users using their cards in the UK then I think Monzo should reward this loyalty by passing a discount for overseas cash withdrawals to these customers.
The £200 monthly limit suggests that £2400 cash withdrawals over the year is feasible however most people won’t be making regular withdrawals so the actual number of withdrawals and cost to Monzo would be less.
I would suggest a £1500 - £2000 yearly free cash withdrawal limit. With the charges starting at 3% but being reduced depending on the amount of activity on the account that Monvo makes money from.
All i am saying is continue with the loss leader model to grow you customer base to a level where you can generate revenue and profits through other channels. There is ample funding available for startups adopting this business model if they can demonstrate the user growth
Hello, First of all, i think it would be a good idea, to have a free current account and card usage with the agreed charges. Hope the community can help to decide. In the other hand I would prefer to not to pay any charges and fees after card usages and also would be great to use currency exchange mid-rates. And for that I would be more than happy to pay monthly subscription, I guess lots of other user would be happy as well (we pay subscription fees after everything (spotify, netflix, phones, prime, gdrive, etc). Monthly subscription cost can be calculated by Monzo based on previous year fee costs, etc. And can be changed (increased, decreased) based on user usage, I am pretty sure Monzo can calculate a good one which is good for everyone (extra options, added insurances like travel, and phone…)
The only reason for getting a Monzo Card was free Overseas ATMs The Card was recommended by Which
Are the ATM charges for Monzo new ? is this a change to the banking process ? NO
I think Banks are rip off merchants most senior banking staff are only interested in making money (at customers expense) so when I saw Monzo I was delighted to sign up and recommend it to every person I spoke to
Turns out Monzo is just another financial institution
Option 4 Maintain the terms you agreed with Customers when they signed up
Should you wish/need to change the terms for new customers then fine do it
Credibility and trust in the financial sector is very hard to find - for a short time there, with Monzo, I thought I had found it x
They’ve already pointed out in the blog article they aren’t trying to make a profit on this. It’s currently netting them a loss at the moment and all they want to do is break even on these charges.
In the nicest way possible though you are the kind of customer that is causing the problem… Maybe the question is what would make you want to use Monzo as more than just for ATM withdrawals?
I think what they are saying is there is a provision to offer free withdrawals to the average customer who uses the card regularly as there is a revenue stream from this kind of use… the problem is there is disproportionate use abroad from a small percentage of customers who do not use domestically to offset these costs.
Let’s be frank, a lot of the people in this thread joined Monzo to get the “free atm withdrawals abroad”, because nothing exists like that in the market really. The reason is, they charge such high fees to the banks for this privilege - which we’re seeing here.
The unfortunate thing is, there are so many people that have joined just for that – and not for the actual other benefits of Monzo.
I have been on 4 holidays this year so far, Berlin, Jersey, Sweden & Rome. Within these, I rarely used cash. I think the only time I really needed cash was when I withdrew €200 from an ATM to cover the cost of a fine from the Berlin metro authority for me & my partner.
The requirement to have a higher than £200 limit per month is silly, I can understand people wanting to accrue this up to an annual limit, but why?
If people are willing to jump ship from Monzo because they’re wanting to charge people to use ATMs abroad, then so what? I’d personally much rather these people stopped incurring extra costs to Monzo that might impact their longevity as a bank for my benefit.
People that use the £200/month limit abroad, and don’t do anything else on the card? Well, they’re the people that will need to be weeded out & potentially something put in place for that use case down the line.
Realistically what are people requiring the cash for abroad? I’m sure people would get a better exchange rate direct from their bank, buying in bulk Euros or similar, and taking them abroad with them.
200/month & 3% is transparent, and simple.
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That’s the point. Monzo have assessed this and have found that they will not be able to support this through other channels.
Why should investors/other customers subsidise your holiday?