There’s more people living outside London than inside
No other city in the UK has more people living in it. If London sneezes the rest of the country suddenly has a really bad case of flu. Is it fair or right? Maybe not, but it’s just the way it is.
It’s a difficult optimisation problem. Which do you aim for?
Or dying in it, probably.
It would have to be spread around the country. Retailers or offers in only one small location would quickly leave users feeling disillusioned and excluded
No because everyone knows Londoners go elsewhere to die.
Different cash back benefits would benefit different segments of the Monzo customer base I spend £60 per week on fuel so a group purchasing of fuel from a consortium that could save me 1 or 2p per litre would benefit me more than say someone living in London let’s see how this product offering develops with interest
What about #coffeeback? I’d be up for that☕️.
Sounds good to me!
It really is.
I don’t think any cashback or reward models are very sustainable unless majority of Monzo users are paying their salaries & other regular income into Monzo CA via BACS!
@tom articulated it very well (see slide below). So even if I’m paying my salary directly into Monzo, I’m still costing Monzo £6.50 a year To reach break even point (or surplus) I will need to move all my DD’s over to Monzo and it is then when I should expect some rewards in return!
I’m sure that’s why most bank accounts make cashback dependent on direct debits…
I guess it depends who’s paying the cashback. Merchants or Monzo themselves Ideally he merchants.
Is there anything anywhere that puts that slide into context?
I was at the presentation. What context do you need?
An understanding of the costs involved that make up what I assume to be an average for each type per user. Thanks
Ok. The prepaid card used third-party processing, which was expensive. The only way to top it up was via another card, which was also expensive. Also, a lot of people used it only for travel, which meant they were less familiar with Monzo, and therefore needed more support. They were also less likely to use the card at home, which meant Monzo were not making interchange fees (the commission charged to merchants). When those users were migrated to the current account, they could use bank transfers for top-up, and the backend was all in-house. Some may also have had access to overdrafts, which obviously make money. However, as people used to the convenience of topping up by card, a lot continued to use that method, so it was still costing Monzo quite a bit. For those new to Monzo and paying their salaries in, they are less likely to top up by card, more likely to have an overdraft, and use the card at home, so a lot of the costs at the beginning turn to revenues by the time people use it as their main account.
Does that help?
Yes thanks, I’d still like to understand the £6.50 breakdown but hey ho, can’t know everything :).
Well the majority of people are likely not using the overdraft, not using it much at home, and use it for the free foreign cash, so by the time you’ve manufactured the card and paid a contribution to overheads, you can see how it would mount up. These numbers probably don’t include overheads, but even so…
I remember YEARS ago (probably around 2005) there was a group trying to do this. The idea was like the fleet deals big companies have, everyone would agree to use the same petrol station and show a card to save a few pence. I’m not sure it got anywhere, but this kind of group buying is an interesting concept now Monzo is at something like 1% of the population!