As of time of writing, I’ve noticed a £50 incentive for moving a salary across to Monzo, a “double your salary” lottery type system and, of course, the “get paid a day early“ scheme.
I was curious what people thought about this approach to salary incentives when comparing it to other salary payment reward schemes like Club Lloyds, Barclays Premier or HSBC Premier?
On the surface, it initially feels like a salary move to Monzo is hard to justify? The current Monzo rewards feel circumstantial and, assuming you have bad luck, provide no consistent, long-term value.
Perhaps a very specific type of customer is being targeted with these current incentives, but I guess my point is, could more customer’s experience with Monzo be improved by casting a wider net and, say, reducing all customer’s Perks/Max account fees on a scale that increases with the salary that gets paid in? And, if a customer’s salary does not meet these requirements, THEN they are added to the salary lottery? This way, the larger salary customers get rewards that can start competing with the aforementioned accounts, and smaller salary customer’s experience is as-is?
This has been recommended a handful of times by other users It seems whoever is working in that department Monzo prefers gameification and gambling products over the idea of reducing Extra/Perks fees. Maybe it’s being took onboard internally
Monzo will make money from your salary sat in your account, and then transaction fees etc so the £50 reward and the double salary lottery are affordable for them, based on the returns involved.
Lloyds £5pm saving for Club Lloyds is where my money goes. If Revolut offer Metal for having my salary paid in then it can go there. Or maybe even Monzo for Perks.
I’ve always been of the view that something like Extra should be free for those who pay bills in and have direct debits out.
Why?
It incentivises folk to use Monzo as their main account
There’s little cost to providing it - and while I don’t have the data, but I suspect Monzo would gain more than the Extra fee
It also incentivises Monzo to innovate more. New software features could become paid, this stopping the laurel sitting which feels like is firmly in place!
Curious, do any banks other than Lloyds (Club Lloyds) and Chase (Cashback on certain categories) give anything free/perk wise for paying your salary in?
The Monzo £500 and two direct debits thing isn’t much a win in my opinion.
Love it! This would be the exact kind of thing I’d love to see. It’s rewarding ongoing loyalty with something tangible, predictable and comparable. I also don’t need to do maths to work out my odds of getting a return for my loyalty!
I asked AI how many current account providers in the UK: 50–60 active current account providers in the UK, with a core group of about 17 major personal current account brands.
So far there’s less than 10% that offer a pay in X and we will give you Y in terms of “loyalty” aligned to what Peter said.
That might just be it right now then! I think we are drifting a little bit off of the original thread’s purpose so, if its okay, I just want to reiterate the thread’s original intention - which was to ask the question: “Can Monzo do a better job of convincing a wider range of customers to move their salary to Monzo?”. And, perhaps more specifically, “Is there a path for Monzo to compete with Barclays, Lloyds & HSBC Premium accounts?“
If people have thoughts about gamification, the salary lottery, getting paid a day early, or any other ideas around what features they would want as a result of committing their income to Monzo, then I’d love to chat more about it.
Yes I hate all of these gimmicks . Get paid early is only useful once - every time after that your pay is on the same cycle and thus its no different from before. And as for the lotteries I’ve voiced my displeasure over how tacky/gimmicky they are on various threads. I posted something similar to Peter_G elsewhere but I think free Extra (and Perks/Max discounted by £3) would be a much better route, although frankly I think half the stuff in Extra should be free anyway….
This is spot on! Personally, I have looked at ‘Extra’ and it isn’t worth the £3 per month (for me). There is also very little incentive for me to have my salary going in and DDs set up, but I’d seriously rethink this and start using as my main account if the clever features within the ‘Extra’ comes as standard.
. Get paid early is only useful once - every time after that your pay is on the same cycle and thus its no different from before. And as for the lotteries I’ve voiced my displeasure over how tacky/gimmicky they are on various threads. I posted something similar to Peter_G elsewhere but I think free Extra (and Perks/Max discounted by £3) would be a much better route, although frankly I think half the stuff in Extra should be free anyway….