Well it will probably make their systems a lot more complex as they’ll have to handle real accounts and prepaid in parallel, mean they have to deal with criticisms that ‘it’s not a real bank’, deal with the lingering suspicion caused by people misusing prepaid cards for fraud, deal with acceptance issues, and finally after all that go through all the pain of a transition to real bank accounts and all the churn and confusion that goes with it.
But I’m sure they’ll deal with any bumps in the road and they must have good reasons, it’s not at all easy to get a banking license in the US apparently.
I didn’t suggest or assume it would work - just saying that they know how to roll-out something like that, build up a cult following who don’t feel obliged to “risk it all” by switching straight over to Monzo - let the trust and product build up reputation and then release as a fully fledged bank.
To me that makes the most sense.
They’ll be running UK vs US accounts in parallel so I don’t think having a “lite” version of that is actually a bad thing.
Monzo are a real bank now in the UK and people (as well as publications/ newspapers) still think it isn’t a real bank so
Just look on the forum - Monzo still have that now! Majority of complaints and poor reviews are down to account closures and acceptance issues.
I don’t think the previous transition caused Monzo any pain - they did ridiculously well and if you look at the numbers (saw it in a graph somewhere in the 2 million thread I think) they in fact boomed after transition.
To me launching full scale and full whack in the US where you are unproven, unknown and the new kid on the block feels foolish - why not take a more calculated, scalable and targeted roll-out and build like they have already done.
We don’t know what they’re doing yet, but there are significant problems with prepaid too. Certainly less challenging than getting a banking licence over there and doesn’t have the disadvantages of using a partner bank either so understandable if they take that route, but there are definitely downsides which will haunt them for some time if they do.
I’m not denying there are possible constraints and weaknesses in prepaid. They’ll still need to have a banking licence to do prepaid though no? From what I’ve seen they are partnering up to obtain the De Novo Licence but likely business model to roll-out a “lite” product before building upwards.
One thing I think that cant be underestimated is a differing in cultures from UK to US banking.
It can be very easy for us to assume that a UK solution can be pushed out and fix a US solution but without some actual US customer inputs I think assumptions are just that.
Whats made Monzo so successful here is the community, for Monzo to be successful in the US i think they’ll need similar buy in to say sorry we dont do things like that here or to point out differences/expectations from a US users point of view
For example, cheques? are they used more in the us than here? will that mean higher emphasis needed on the autoscanning. Interest? will account interest be needed as a norm.
All challenges that im sure Monzo are chomping at the bit to meet.
My only fear and one ive said a few times now is with all this new book of work I hope hope hope that more devs are onboarded quickly as there is so much more existing improvements needed on our side of the pond too.
That is not set in stone unfortunately, things change and at the end of the day its monzos money to use where they see fit to make the most profit.
Look at the Business Accounts for example, pretty sure it was only 6 months ago that it was mentioned BAs would not impact CA development and they would be dealt with separately then there was a complete u-turn on this stance within a month or two.
I hope im proved wrong obviously as I want to see Monzo grow be it BAs, CAs, US accounts whatever as an Investor and general Monzo fan. Just as a CA only user (and the bulk of monzos main user base) I dont want it to get less love
Obviously it’s Monzo’s money to use as they see fit (unless the contract says otherwise) but Monzo are constantly hiring more developers. I’m not sure the current account has suffered due to business accounts as business accounts have meant more developers overall.
Obviously there will be times when you need something done urgently and you put all hands on it but overall business account development will lead to more functionality for the current accounts, for instance it wouldn’t surprise me if it turned out businesses needed cheque imaging and it ended up getting developed due to business accounts. Additionally, businesses may have a more compelling case for BACS/CHAPS which could lead to Monzo having that functionality for all users.
Both you and I are making alot of assumptions here in terms of dev numbers, the only thing i can use to back up my argument is whats been released for the CA in coming up to 6 months.
If you look at the big list, that was lot of things developed in a short space of time that really benefited the CA.
This year there hasn’t really been an awful lot developed for this worth talking about, the small tweaks that have been developed were all on Monzo time… happy to hopefully be shown up with some incoming announcements though
Not sure you can look at it this way, lots of things get half-built and not released because they’re waiting on something else. There was a period before the “Big List” where other than current accounts Monzo released basically nothing for a year. The Big List was either quick wins or things that ground work had already been laid for. We don’t know how much stuff is currently being worked on in the background or how much time a one piece of development work requires versus another. Monzo are hiring devs and have been constantly doing so since launch.
Maybe I am being too negative in that alot of the stuff they have been working on just wont ever be of use to me. I’ll always personally go for best price over convenience so the savings pots, plus account, loans, energy switching just aren’t useful for me but thats where the money is i suppose.
I’d love the little things to be built and prioritised like payee management, rebuild locked pots, committed spending pot, pot feeds on ios etc.