Competitor update


(james_e_bell) #207

This is quite cool actually i think - network of independent brokers rather than it being an ‘Atom’ mortgage


(Richard Müller, Consultant) #208

Metro bank have become first new bank to break into the closed world of the Faster Payments Scheme since 2008 becoming a core direct member


(Daniel Warriner) #209

Has anyone seen anything from Arro (https://www.arromoney.com/)? I came across them on a Facebook advert. They don’t divulge too much into how they work but I assume it’s the same way as Loot in that they piggyback on another bank’s backend systems and just use their own brands.

Can’t see anything about push notifications or a smart app though, so it could just be another ThinkMoney lookalike in the no credit check, no address verification kinda systems.


(Ben Green) #210

No, but I do need a business bank account pretty quickly and Tide are taking forever (months!!) to move through a relatively tiny queue IMHO. Was about to try Metro but will have a look at this look too, cheers :smiley:


(Richard Müller, Consultant) #211

Metro just signed up with Post Office to let you use them with your Metro bank business account


#212

Anyone got any info on the actual experience? My mortgage is a long way off needing a change so doubt I’ll be trying this out in the next 10 years


(Saveen) #213

Not strictly a competitor at present, as Lunar Way is focussed on the Nordic countries, but an interesting story nonetheless:

Danish banking app Lunar Way is one of a plethora of startups in Europe attempting to update the retail banking experience with a mobile-first offering. However, rather than securing a banking license of its own — à la challenger banks such as Monzo, Atom, Starling and Tandem in the U.K. — the Danish company is partnering with local banks in the countries it operates in, a strategy it believes has enabled it to get to market and innovate faster.


(Alex Sherwood) #214

No doubt they will be a Monzo competitor one day :wink:

No banking license means I have the same concerns for them, as I do for Loot though -


(Alex Sherwood) #215

Probably a little bit unfair to highlight this, as it may have been a one off but this made me smile (& is a good example of some great response times) - in the time that it took Metro Bank to reply to this tweet

Monzo had already replied, suggested a fix, when the fix didn’t work suggested the user contact the support team & the support team enabled another potential fix :thumbsup:

oh & this is what happened when the user responded to Metro Bank’s request


(james_e_bell) #216

I don’t really agree with this article (particularly the bit at the end about challenger banks being only for the few) however the customer satisfaction is still interesting. Monzo isnt included - I wonder whether Monzo do track customer satisfaction? Ive never been asked!


(Marcelo Grundig) #217

I disagree with this article.

Clients from high street banks probably don’t care or are too lazy to complain about the level of service to start with.
Secondly, clients that are now with “new challenger banks” have a higher standard when it comes to service (that’s why they moved from high street to these “new challenger banks” in the first place).

What about satisfaction of current clients from “new challenger banks” in comparison to their former high street banks?

Nonetheless, there will always be room for improvement when it comes to UX regardless of service, sector or company.


(Alex Sherwood) #218

Continuing the trend…

UK banks shut 1,000 branches as customers turn to mobile banking

https://www.ft.com/content/f2b66af8-c153-11e6-81c2-f57d90f6741a

More than 1,000 bank branches have closed in the UK during the past two years as pressure mounts on lenders to cut costs and as more customers turn to mobile banking.

HSBC has shut the most outlets of any bank since the start of 2015, reducing nearly 30 per cent of its network across the country by closing 321 branches, according to Which?, the consumer group.

The state-backed lenders Royal Bank of Scotlandand Lloyds Banking Groupshut 191 and 180 branches respectively. The regions with the most bank branch closures per 100,000 people were Wales, south-west England and Scotland.

Pressure is building on banks to cut costs at a time when profit margins are being squeezed by record-low interest rates. The main reason for closing branches to meet this goal, banks say, is the growth of mobile and online banking. HSBC, for example, has seen the number of branch visits drop by 40 per cent in the past five years.

Research published this year by the consultancy Caci showed that current account customers visited a bank branch 427m times in 2015 — less than half the 895m logins on a mobile app. The number of branch visits is forecast to drop to 268m by 2020, while mobile app usage is on track to more than double to 2.3bn.

& …

“banks should consider innovations such as cash delivery and pick-up services as an alternative.”

what a nightmare to have to deal with (& pure cost), poor banks :laughing:

Edit

Also -


Foreign Transaction Fees and the Future of Monzo
(jamesbrierley) #219

Hi Guys,

I know this is the competitor update thread, but is there an update on Monzo.

Maybe @tom could provide us with an update on timelines in relation to getting the full bank licence?

The only reason I ask is that I’m just eager to kick my existing bank to touch as soon as possible and being completely sold on Monzo means i’ll be treating it as my main bank as soon as the license is granted.

One other reason is that it seems to me the pace of innovation will really pick up when you get given the full license.


Launching The Bank
(Colin Robinson) #220

There’s always

My first point of call when I’d like to know what’s going on :slight_smile:


(jamesbrierley) #221

Thanks. Checked that out already though. Was more referring to the nitty gritty of whats required to move from an a limited banking license to a full banking licence


Launching The Bank
(tom) #222

Hi James, good question. We’ll perhaps publish a blog post setting out timelines in more detail, but the answer is broadly “the first half of 2017”.

We’re testing out the very first Monzo bank accounts internally right now; we’ve successfully made live Faster Payments, Bacs Direct Credits and Direct Debits, and foreign transfers, all with Monzo account numbers and sort-code. We’re also working to finalise our full MasterCard implementation.

We can’t hold more than £50k of customer deposits until our restrictions are lifted by the regulator, so we’ll have to stick with internal testing until that happens. Once our restrictions are lifted, we’ll start rolling out the first few hundred “full” banks accounts to early supporters. I’d hope this would be around March/April/May time. We need to figure out the fairest way of allocating these first accounts!

As long as we’re happy that everything’s working as expected, we’ll ramp up the numbers of these accounts, as we did with the prepaid card. We’re aiming to fully transition the prepaid programme to full bank accounts by about June/July 2017.

As with before, these dates are just my best guess. There are a number of reasons the dates could slip, but they’re what we’re working to right now.

Hope that helps!


Launching The Bank
International accounts and PayPal
Transferring Euros from Italian bank account
Welcome to Monzo Bank!
What will the process be for a full account?
(Daniel Warriner) #223

I’m curious @tom, @oliver (or anybody else?)! What are Monzo’s sort codes? Do we have a unique set or do we piggyback on another bank’s set of sort codes (like Metro Bank with Barclays’s 20 sort codes)?


(Alex Sherwood) #224

Because PR

https://ibsintelligence.com/ibs-journal/ibs-news/starling-bank-pilots-debit-card-delivery-by-drone/

Why would a bank bother working out how to do this, when normal couriers will be able to offer the service, as soon as the regulators approve using drones for delivery (whenever that is)?

Surely flying drones from the HQ would only make a marginal difference in delivery time vs having a courier collect the cards, at that point.


(Ben Green) #225

Much less secure too as they’re quite easy to shoot down (with decent aim) and they don’t post through your letterbox so anyone grab the delivery.

That being said, we’d hope they have some kind of card activation by app security measure in place. I’m not sure how they work.


(Richard Müller, Consultant) #226

…because someone lost the plot