I looked back at the Sept 2017 comments and one person suggested that Starling Bank would soon follow the line of daily/monthly limits and charges. As of today, 7 months later, Starling still offer no fees on foreign ATM withdrawals and amounts. I’m not flying the flag for Starling - but what is indicative is the cut throat nature of internet banking. It’s so easy and quick to set up an internet bank account - then transfer balances - that the internet banking sector will soon be like petrol stations vying on price. It will all come to cost of using the bank’s product; ease of service from the App to ‘one-to-one’ interaction 24/7; interest on cash balances and o/d facilities. And, what’s the end game? When there is a good loan book established and breadth of customer base - whoosh … sold to a High Street player before you can blink. So, Monzo, just keep tracking your competition and be better on pricing, cost, client/stakeholder interaction and other services - but don’t offer too many products/services… Good luck.
We’ll see how thay get on with 600k customers I guess. Time will tell.
with them providing banking services to other firms they get a revenue stream from that probably greater than they are getting from marketplace and overdrafts
On the other hand, Faster Payments are pretty much free, so does it really matter to Monzo if a competitor wishes to loose money by offering free withdrawals? Monzo customers can just as well open a Starling account and transfer money there as needed when they want to withdraw.
Not a dig at Starling by any means, but their free withdrawals is just a marketing move, when they reach a good amount of customers (which I have no doubt - they’ve got a good product mostly comparable to Monzo), they will discontinue the free withdrawals as it’s obviously not sustainable.
I agree … it’s all about “keeping up with your competitor”… and that’s how to instill stakeholder loyalty. It would be interesting to see how many people have both a Starling (or comparable) account and a Monzo account running alongside each other…
Starling is tiny compared to Monzo so they can afford to do it… if and when they reach 600k users then they will more than likely change that.
Maybe a small hurrah when it reaches 10k?
Is this not what Monzo did in the first instance?
Monzo has 30555 members though?
I personally use (and work for) Monzo because in my view, the product is so much better designed than the others that are available. We also have some amazing new features in the works that will make it so much easier to manage money and use Monzo with your friends. I’m personally willing to forgo current account interest to get these benefits (it’s generally terrible anyway).
I’m really looking forward to the day that I can open high-interest savings accounts right from within Monzo with other providers.
This is very sound advice!
I did not see https://community.monzo.com/about exists…
That’s a lot of
new quiet users?
Starling has 2.4k users
How do you think trust will be built with users to ensure they are actually getting the best deal out there? I don’t see myself trusting Monzo/starling et al with this, especially in the short term.
I’m a bit gobby aren’t I?
Monzo was founded by people fed up of being screwed over by banks because we wanted to stop it. We would never launch a product or service that we wouldn’t use ourselves, and this will continue into our marketplace efforts. People inside the company are extremely vocal about this.
We build trust through clear communication, good design, and commitments to customers.
I liked your comment about “amazing new features”… that’s what my post was all about - being one step ahead of the game…
And then another internet bank will stay up offering free ATM withdrawals or competitive product compared to your current bank … so keeping ahead of the game is essential
Thanks Kieran … will you now offer free ATM similar to Starling’s ?
Yeah but I think it’s fair to give Monzo the benefit of the doubt; back then they launched the prepaid they were one of the first. Starling came later so they could’ve just looked at the popularity of the Monzo prepaid and decided whether it’s worth it. They still decided that it was but let’s not forget they had the numbers right there to decide whether it was a scalable move in the long run and clearly it’s not in the long run given they want to compete with the big banks with millions of customers.