Biggest threat to Monzo in 2019

  1. Monzo need to be profitable. Without this, everything else is nothing.
  2. Monzo’s cult following is powering it towards great things right now, but people are fickle. Customer service issues, like those currently being experienced, risk the loyalty of their followers. Equally, any technical meltdowns could risk this.
  3. Competition. Monzo don’t have a unique selling point. There’s nothing they’re doing that their competitors (either big traditional banks, or the likes of Starling and N26) couldn’t copy. There’s a real risk, in 2019, that others catch up, or Monzo fall behind. (Let’s not forget, Monzo don’t lead the way in everything - cf paying in cash, electronic imaging of cheques, loans, etc.)


Yes. This is really annoying!

  1. Given how many millions of pounds of shares they’ve given out, I presume Monzo will be planning to float on the stock market. For investors, that might be a sink or swim moment.

(Is Santa here yet?) #65

Really can’t see that happening next year

(MikeF) #66

15 posts were merged into an existing topic: Brexit Chat

(Nathan) #67

The thing with the investec offering is that Investec have nothing but gains from the partnership:

  • They offer the same rate of 1.15% interest
  • Monzo then subtracts the .15% from this as their cut making it 1% to the user

Cant think of a single reason theyd be unhappy with this partnership?

I cant see why similar partnerships wont work in the future if im being honest. And as tom mentioned the more customers Monzo have the more companies will want a bite of that.

Think of the amount of money that companies currently spend trying to gain new customers? Tv ads, radio, social media. If they can touch over a million people for a small cut or doing a promo rate theyd be silly to pass that up :grinning:


I can really see Monzo becoming a powerhouse of a hub which is bling go be promoting smaller or similar size fintechs that just perfectly match up with the idea of ‘disrupting’ traditional banking.


I’m praying at the very least we stay in EFTA.

This is a law introduced by European Union directives, protection up to 100.000€ or equivalent (it was originally 80.000£ but got changed to 85.000£ and will soon need to be changed to 90.000£)

It won’t since Monzo could very well fall under the capital requirements required for a bank. In times of recession cash is king, because to control money the government can limit what you can do unless its in cash.


Monzo just being used as a daily secondary card. Whilst the majority of money and financial services bought are in a main account…


Again, unlikely. Monzo lend far less than most high street banks.

(Mike) #76

I think biggest threat is competition… Mozno isnt the only bank in this niche market are so they need to continue staying ahead of the game and fine tuning customer services, application and adding other banking services.


Surely the argument that there are other competitors for Monzo is a misnomer? There are 5 or so big clearing banks and yet no one says that one or the others main competition is the other?

The acts of Starling, Revolut, N26 will surely just act as a way of pushing the market forward quicker and bring about more innovation?

Apple and Samsung both technically “compete” but they still operate in the same market.

(Daryl) #78

All the examples you give are long established players. Yes they compete so to speak but they all have their own ‘bit’ of the larger market that they occupy. It’s much harder for an organisation like monzo which is recently established and is still arguably finding itself to weather the sort of challenges that larger organisations shrug off. Remember that for every Apple or Barclays there’s 1000 others, some who looked much more promising initially, who’ve tried and failed.


I can see what you’re saying but then in that case it’s less about what the others are doing and more about how Monzo breaks further into the market.

I’m unsure on where exactly Starling/ Revolut/ N26 are in terms of numbers compared to Monzo. But I am not sure that even if Monzo is smaller in terms of market share that the guys mentioned above are necessarily big enough to “shrug off” things that may put Monzo under.

Overall what I mean is this sort of competition breeds further innovation and change - however do understand that as a relatively small service (compared to the large established banks) that they could try and fail.

(Graham - Mental health professional) #80

For my money - the opposite, competition is exactly what will make Monzo stronger.

Only with the stimulus of there being real alternatives for customers will the product thrive and develop. The same applies to any similar bank which plans to become a go-to solution for current account holders.

Biggest threat?
For Monzo, or any other customer focused business, that threat is more likely to be failing to listen to those customers.

I really don’t see that happening with Monzo.

(Daryl) #81

You seem to be on exactly the same page as me. It’s way to early to say that Monzo are the next big thing in banking, as much as I hope that’s true! I would have invested myself if I wasn’t in a bloody bunker without my phone when the investment window opened and closed! But they can’t really be compared to the established players yet.

As for the other ‘challenger banks’ I have starling and Revolut, but the only one I trust enough to have my salary paid in is Monzo, and the only card I ever get comments on and can then speak passionately about is Monzo. The other feel like banks that are trying to be different, Monzo feels like something different that is a bank if you get what I mean.


100% - I really want it to be the next big thing and I truly think it could be.

But right now we just don’t know - they’ve grown ridiculously in the last year and I hope this continues (hopefully with the press re: crowdfunding this will happen) - sorry you couldn’t get it (I think there will likely be another crowdfund before an IPO).

See for me its comments in relation to “trusting” Monzo where it shows that I don’t think necessarily that its competition will be its main struggle - it is as you put it ensuring this challenger/ disruptor continues to do so without feeling like a traditional bank and genuinely tries to continue to innovate and be different! (I only joined the forum last week and this is something that is further tying me into the product - just my personal feelings anyway!)

(Sacha Zarb) #94

Oh and, in non Politics threat stuff, the iOS app is an issue, almost feels a bit neglected in parts, and if the main focus of the bank is the app, it has to be right. It’s the closest thing to a branch, so needs to be right

(Neil M) #95

Biggest threat to Monzo is profitability and liability to pay the huge deficit they are currently running. If they can’t do that then nothing else matters


Completely agree with all four of these