Connected Accounts: what next? (Summer 2021 edition)

[SebH]

@itsonlyme

John Lewis credit cards

There’s not much hope for John Lewis credit cards, as explained above, since they only support so-called MCI connections.

Connected Accounts: what next? (Summer 2021 edition)

There is already a regulatory requirement to support Open Banking for “payment accounts” (accounts that you can pay directly into and out of) but this doesn’t have to be via API, it can be via Modified Customer Interface (MCI) - which is basically like screen scraping. Most providers of Open Banking services have decided to not support MCI connections as they are less reliable and much less secure. The government is currently looking into whether to expand Open Banking to 1) require APIs and 2…

[xnox]

Revolut is not fully connected. Whilst GBP wallet is connected, one cannot do easy transfer from it to Monzo.

Whilst inverse works easy transfer into Revolut sourced out of monzo.

[Peter_G]

This obviously explains the real reason why I thought through why Revolut should still be in the list and didn’t just forget to take it out.

whistles

[Peter_G]

Okay, I think there’s enough data for me to say what I’d do if I were Monzo! Remember that this is just for fun - I don’t know how much resource they have or how much effort these things are…

1. I’d add Virgin Money, Sainsbury’s Bank and New Day credit cards (and, if a marginal exercise, Tesco and M&S). This is because they are standard Open Banking APIs and all the UI stuff is already in Monzo. I wouldn’t do Starling (even though I voted for it) immediately as a) I think there’s fintech forum bias, b) it’s not a standard API, and c) it’ll need app work to effectively show Starling goals/spaces/pots.

2. I’d then bring outstanding features to connected accounts, bringing them to near parity with Monzo native accounts (notes, tags, split-the-bill, tabs, merchant data). The latter will be difficult, but important if we want Trends to show top merchants etc.

3. Thirdly: manual accounts. Probably aiming for #4 from this post…

4. Lastly, I’d try and get some commercial agreements with folk like Nutmeg, Transferwise, Pension Bee, Paypal, Wisealpha, Crowdcube etc. Open and service accounts in Monzo. Monzo get intro fee etc etc. Or maybe a tie up with some building societies (regular readers know I bang on about this from time to time) for mortgages, savings accounts etc… These come last because they’re really a bit different and are things that can’t really be delivered via open banking as it is right now. And for those APIs that do exist (looking at you Nutmeg) there needs to be some UI work in the Monzo app for it to really fit.

[BristolMatt (Matt C)]

That looks like a great plan of action IMO

[SebH]

@Peter_G

if a marginal exercise, Tesco and M&S ). This is because they are standard Open Banking APIs and all the UI stuff is already in Monzo. I wouldn’t do Starling (even though I voted for it) immediately as a) I think there’s fintech forum bias, b) it’s not a standard API, and c) it’ll need app work to effectively show Starling goals/spaces/pots.

M&S Bank should be fairly easy as their API is almost a carbon copy of HSBC’s, so very similar to a bank already supported.

Tesco is less simple but should be possible as they do have a standard API.

I don’t know about not doing Starling, though. Surely if Monzo want to tempt Starling customers over, offering good support for Starling in Monzo’s app would help?
I take the point that it would be more work than an average connection, though.

[Peter_G]

@SebH

Tesco is less simple but should be possible as they do have a standard API.

You seem like an expert! Does Tesco use the standard open banking API schema? Where’s the complexity?

[Peter_G]

@SebH

Surely if Monzo want to tempt Starling customers over, offering good support for Starling in Monzo’s app would help?

I think your assumption is wrong here. Monzo aren’t, in my view, trying to tempt Starling customers over. They are, I think, trying to maximise revenue through Plus and Premium subscriptions. If we make that assumption, and that legacy bank account holders would be more likely to go to one challenger bank than to two (we’re all in the minority remember), then this is probably in the nice to have category.

Which brings me to the API point. We know that Amex was later and took more work because the API is non standard. The same is the case with Starling so it would require lots more work (I think - we’d really need Monzo to confirm). And, as I say, it’s got the added complexity of goals/spaces/whatever they’re called to plug in. Monzo has the logical model because they have pots, but would need to think through the design and then spend more effort on app development.

But I agree that I’d like it. I just think that in the cold light of prioritisation it’s likely to be fairly low on the list.

[SebH]

I agree with all that except I think that a fairly sizeable set of Fintech users do have both.

They may have upgraded to Monzo Plus or Premium, attracted as you say by the whole package of the offering, and allowing them to add as many of their accounts as possible (including Starling) would be a gateway to using Monzo more over time and staying with Plus or Premium. If it doesn’t allow all their accounts to be added, Plus or Premium is less attractive to those users and they may even “drift away” from Monzo if compelling features don’t support the banks they use.

The Starling API is less non-standard than Amex, apparently, so it shouldn’t be that difficult to implement as it broadly follows the standard. The main difference is the permissions system. Open Banking works on a connection request basis where the third party app keeps track of the expiry of the connection authorisation and renewal of the connection is initiated from there. Starling works on the basis that authorisations are always managed from within the Starling app, and renewal of permissions, etc always takes place at the Starling end.

[SebH]

I’m not a proper expert, more an interested user!

I’ve noticed that Tesco Bank seems to:

1. “reset” the Open Banking connection permission more often than the 90 days they should do, on a fairly frequent basis, requiring reconnection

2. have issues with renewing a permission, as you often seem to end up with duplicate accounts listed in aggregators like Yolt or Emma.

[xnox]

Isn’t Tesco Bank closing their current accounts? Is it just about the savings & credit card from them?

[SebH]

That’s yes and yes to those questions!

[Peter_G]

Maybe wait until they’ve got some customers?!

(Do they have an open banking API? I haven’t checked their website or the register yet).

[Peter_G]

If Chase does have an API, then I’m sure that @edo1493 will be all over it and we’ll see it in Emma soon enough.

[Alexxxxx (>50 categories pls)]

Piggybacking but really do think we’re due some new additions.

Still missing some fairly standard options, i.e. Metro and Virgin. PayPal too maybe?

And would be amazing to see some integration with savings providers like Nutmeg or others

[mikez]

Starling and Sainsbury’s Bank, please

[Peter_G]

@Alexxxxx

Still missing some fairly standard options, i.e. Metro and Virgin. PayPal too maybe?

I think we’ll likely get Virgin. Probably not Metro as they don’t have an API.

PayPal, probably not in the short term (non-standard API, would need UI changes)…

[tjvr (Tim)]

@Alexxxxx

Piggybacking but really do think we’re due some new additions.

Okay then! I’ve just shipped a small store-brand credit card provider. First to name it wins a cookie emoji.

[Peter_G]

@tjvr

I’ve just shipped a small store-brand credit card provider.

Is it not just any small store-brand credit card provider…?

[Peter_G]

@N26throwaway

Flex

That famous Flex store?!

@N26throwaway

Send cookie to

@tjvr

First to name it wins a cookie emoji.

(emphasis mine).