Hi, thanks for this opportunity to comment on this idea.
I have to say I’m not really happy with any of these options.
By following any of the three options outlined, Monzo are essentially just becoming Revolut or any of the banks. There’s nothing innovative or genuinely different or uniquely helpful about these approaches. The % figures may be lower - at the moment - but the ideas are old school and not consistent with the notion sold by Monzo that you are a genuinely different organisation with innovative approaches. Isn’t that what you have set out to be? So innovate. Think outside of the box!
If you really mean to help customers while still covering your costs then you need to introduce a new kind of charging system. Maybe a yearly limit, or monthly limits that roll over, or a certain number of free withdrawals or something else that still rewards users who use your card sensibly while charging more to those who (relatively) overuse it.
I doubt even the most parsimonious, anti-fees user would object to being charged once they have exceeded, say £1500 in any given year, say, which is, of course, less than 12x200 per month. That’s because £200/month is just not high enough to cover for required usage in some territories where cash is king. You’ll have instances where a family go abroad once a year but exceed that months limit and then never need to use it again that year, thus not benefiting from every other month’s allowance. This is an old hat, standard model used everywhere from mobile phone minutes to included allowances of any kind - i.e use it or lose it benefits that are of no use much of the time.
It also raises the suspicion that the £200 limit has been arrived at specifically because you expect people to exceed it, which is not really cricket is it, considering all you’ve said so far about your intentions?
Personally I like the idea of an annual threshold, which you can use up in one week’s glorious blowout in the Maldives or sip at sensibly over the year. But I’m sure cleverer people than me can come up with other unique and innovative approaches. Come on Monzo, you started off wanting to be different, so stay different!
Having said all of that, I do also think this whole notion needs to be scrutinised objectively. Yes, it costs you guys when we use ATMs but do you REALLY need to pass it onto users? You’d be losing your USP. Can’t you cover those costs in some other way? With other financial products or premium options etc?
I tend to agree with many other users that once Monzo starts charging for ATM withdrawals a lot of currently happy users will simply switch to the next new card or option, or use a combination of Monzo and Revolut and any and every other card /option available to minimise their costs. Thus Monzo will fail to earn as much from these charges as expected, thus Monzo will look to increase charges in future and thus Monzo will just become A N Other bank, all USPs lost.
Which would be a shame
I’m glad that isn’t a thing here
