Biggest threat to Monzo in 2019


#42

No, my bad.

The actual terms is if Revolut is to go into insolvency you’re able to claim your money from the ring-fence account in Lloyd’s.

It should also be protected in the event that Lloyd’s goes into insolvency, as far as I know, as these are kept separate from bank funds and can’t be claimed by creditors aside from yourself.

The whole point of ringfencing funds was to separate client and bank funds so we wouldn’t have to bail banks out like we did once before, to my understanding.

I’m relatively sure some form of regulating body would also ensure that banks are ring-fencing funds properly, as they would make sure they’re doing the rest of their jobs properly.

I would welcome someone to clarify this as well, I’ve basically been going off what some of the staff at these places have said.

Have you read the open letter? Within a week of that going out their customer support has become truly good. No point giving them flack for something they fixed when they said they’d fix it.


#43

Surely that only applies to the EU? I would imagine the US is more urgent, and you wouldn’t have N26 in the way. Also I believe all you have to do is open a representative office somewhere in the Eurozone, so not the largest of hurdles. I may be wrong though?


#44

I think if they offer a traditional marketplace where it’s a menu of stuff that takes you to someone else’s site, then you’re right, but if they take the time to integrate things properly, like they’ve done with the savings pot (Investec) and the crowd round (Crowdcube), then the experience will make it worthwhile.

EDIT: Forgot to mention international payments (TransferWise).


#45

N26 is expanding into the US shortly from what I recall and https://chimebank.com is already a thing.

I would also say the EU is a vastly more important market than the US as you have the potential to grow in experience when it comes to launching countries a lot quicker because of passporting rules.


(Jordan) #46

I agree overall but I think it will be a case of time and money - these other fintechs are unlikely to agree to integration for free - they will undoubtedly want some form of incentive (other than just the possibility of more users). But i do think that integration is overall more important than just allowing the services to be viewable on the app.

Monzo’s aim it to a the hub in a hub and spoke model (unless things have changed?) so its whether those spokes are truly connected or that the hub just allows access to those spokes - interesting debate to be had on what it should be!


#47

I personally think the marketplace won’t take off. Before you assume I’m just going to bash Monzo’s idea of it - I’m going to say I don’t think any other way besides small integrations with things like cashback work.

The difference between the small usage of marketplace idea and actually having all your finances through a marketplace is the T&C. No one wants to have 18 different T&C from 6 banks while having the Monzo one on top of that. Finances is just about the one place where I think people do actually look at some terms. On top of that what incentive is there for the bank to not just offer a better rate than they could do with Monzo, and then not have to give Monzo a cut? There’s no incentive at all.


#48

This was brought up a little in yesterdays Q&A and by the sounds of it, they dont want to offer a marketplace as it might sound e.g. multiple options, but to offer a more tailored and streamline “works well with monzo” integrations.


(Jordan) #49

Taking out the Monzo Ts&Cs isn’t that what a customer would have now?

  1. Mortgage Ts&CS
  2. Current Accounts Ts&Cs
  3. Credit Card Ts&CS
  4. Savings Account/ Stocks & Shares Ts&Cs

Would adding an extra set to allow for the integration and fluidity not be worthwhile? Isn’t that the aim to allow people to think about their money and finances differently? Wouldn’t the providers like to see an uptick in users through the integration (arguably entices more customers to join in-app then have to download a separate app and understand it outside the marketplace) rather than to just try and undercut?

I see your point though, in a capitalist world would just having a better benefit not just serve to destroy the 'idealistic" marketplace.


#50

It’s not an extra set, it’s multiple extra sets. Want a savings accounts with Nationwide, but your Mortgage is with Atom, you’ve got another savings with HSBC and you have three credit cards, Tandem, American Express and Jaja.

Thats a lot of terms and conditions and they’re all paying Monzo for this marketplace access? I don’t see that happening. They’ve already all got their own apps and infrastructure that they’d need anyways, so why not offer you a slightly better cut and then you skip the marketplace?

I think a mix of financial education and active involvement from parents teaching their kids properly about money in the real world could do this already.

They could just advertise though, anyone with enough money and a good enough product to convince Monzo they’re worth a place on the marketplace probably has enough money for good advertisements. If they pair the advertisements with undercutting, they’d do pretty well I think. Especially if they can get some good word of mouth.


(Jordan) #51

I can see the argument and agree that not all services will sign up - but i think the idea of Monzo is to disrupt this fairly traditional idea that all services need to be separate. Although a main issue will be behind the Ts&Cs.

I don’t think this will necessarily be of much assistance. How can parents tell their children about (say for instance Monzo) when it has only been around for a few years? Naturally the new tech that comes to the forefront will in turn develop (and again in Monzo’s case disrupt the way that a customer feels about being a customer) and therefore think differently about what a ‘bank’ is.

Agreed but then again what about smaller or similar sized companies who are trying to challenge the traditional form (Crowdcube/ Transferwise/ Freetrade/ Nutmeg etc) align themselves with Monzo and see a benefit in being a part of this challenge as a unitary figure and not individuals simply trying to undercut.

I think your argument however is really solid - but i think the aim of Monzo is to take a chance on this marketplace economy and see if enough customers are game for it.


(Dean) #52

There is a lot of people mentioning customer service as being a problem but from the dealings I’ve had with them I find that surprising. I would rank them close to the top.
I had problems with a direct debit which turned out to be a problem with the other company, Monzo couldn’t have done more to help me, they even said they would be willing to contact the other company with my permission to help resolve the situation but the other company were not interested.


(Only available in amateur ) #53

There was an issue with waiting times but as of today that’s been sorted


#54

I was thinking about educating their kids and the schools educating them on finance in general so the kid, when they turn an adult, understands all the things they need to know and can make informed decisions themselves. This would allow them to sign up to all these different services separately, getting the best deal and then they’d also understand it for each service after.

No point educating them about specific things when it comes to products. I’d rather they could work out what’s good themselves. That’s true education.

I agree your argument is reasonable though, I hope the marketplace does well though as its a cool idea - even if I’ll personally give it a miss to abuse undercutting :wink:


(Richard) #55

The iOS app frequently hangs when opening and occassionally crashes. I wonder if it behaves differently on depending on iPhone model? Not a great experience on XS.


(Jordan) #56

Definitely agree with you here! Although just experiencing the market and the services themselves through new tech will help the younger generations.

Will be interesting to see where it goes, thanks for a good back and forth.


(Andre Borie) #57

Not great on iPhone 8 either.


(Tom ) #58

This is odd. I’ve only ever had one issue with performance on iOS in 3 years and that was last week when I think I was on a dodgy TF build. I’ve had an iPhone 6S most of that time.


(Nathan) #59

8+ here also and sometimes its a bit subject to lagging behind abit from my actions.

Just on the why would companies integrate with monzo through the marketplace take investec as an example.

How many of the people who openend the investec savings pot would have opened up a savings account with Investec if not for monzo? Id be confident in saying 99%


(https://youtu.be/5DmYLrxR0Y8) #60

After much thought I’ve decided these companies are the biggest threats to monzo.

Atom, Tandem, Bunq, Monese, N26, Amaiz, Revolut, B Social, Metro, Liquidity, Tesco, Loot, Coconut, Tide, Fidor, Shawbrook, Abacus, Oaknorth, Zopa, Ratesetter, Investec


#61

Definitely true but I’m imagining quite a few people haven’t been actively looking for savings account and just want to tie their finances down into one place. Have to wonder how many people actually have savings pots with 1000£ in too, I’d also like to know what kind of people did. If it’s a small demographic of Monzo users, is it even worth it for other companies?

Maybe in the case of investec for sure no one has heard of them (at least I hadn’t until Monzo announced savings pots) but do you think every provider will think the same? They could very reasonably say “there’s no guaranteed user base in monzo, so we’re paying for a possibility of 0 users, and we could still be making a loss if a large amount don’t adopt our services”. This could even lead them to require minimum amounts that are quite high, like Investec does.

I don’t think a marketplace will work, but I’d like it too, even if I personally give it a miss.