Because that’s what they are they’re a financial institute like any other… Except for the fact that they’re (monzo specifically) pushing the boundaries of current financial technology.
Not everybody will share this view but cash is legacy. Anecdotally, more and more places & people are moving away from it, it’s getting to be an outdated medium.
I know that cash isn’t gone yet… It’s still relied on for plenty of things but from personal experience I use it for fewer and fewer things, for example: Hair cuts & the chip shop. That concludes my list
Whenever I receive cash, i.e. on my Birthday & at Christmas, it’s always deposited straight into a legacy bank (at my earliest convenience). However it’s not always convenient! I have to find parking which is a pain as my branch is on a really busy high street with limited space for cars. Plus the opening times limit me to work lunch time & a couple of hours on a Saturday.
If we look at PayPoint for a moment (not confirmed but an almost definite partner for this cash deposit functionality)… They have far more locations, much longer opening hours and likely less queues because of the sheer quantity of points to choose from
Would I trade convenience for up to £5 a year depositing what little cash I deal with? Yes!
Would everybody? Almost certainly not! But I’m sure that plenty of people will complete accept the minimal fee for this especially when you weigh up how much money monzo aims to save every single customer by offering world class budgeting tools, an ever expanding feature set and the excellent marketplace which monzo are always trying to grow
Cash has a cost and I don’t think this has anything to do with the so called “millennial customer image” I know a 70 year old with a monzo account because their legacy bank was so awful. All of their “security” causes so many headaches…
(That turned into long ramble… I seem to be doing that a lot lately )