Cute toy but very limited


#1

I’ve had a Monzo card for 12 months now, originally pre-pay, now bank account. It’s nice to see payments instantly but I mainly use it for budget/good overseas forex rate, I can’t see why anyone would use it as a main account without at least online access and statements.
I have an “interesting” credit history in that for most of my life I have been on a very high income but a few years ago (for reasons too boring to explain, but they were unavoidable) had to default on some cards. The defaults are paid off, I am in the top 0.5% by income, and have very substantial assets, but as an internet bank Monzo has no flexibility - computer says no and that is that as far as offering even a £100 overdraft goes. I’d like a bit more from a bank than just being an algorithm.
So it’s a nice toy but except for the forex, which is good, I have no plans to move from Handelsbanken where you actually talk to your branch manager in person and who understands your circumstances.


Group think?
(Simon B) #2

Hi Nick - welcome to our community! :wave:

Thanks for your feedback! :grinning:

We do have statements - you can generate them from the icon in the top-right of the “Spending” screen and we’ll soon be making them more prominent.

Different services are suitable for different people. Many of our customers can’t think of anything worse than having to go to a branch and talk to a manager! I suspect that if this is something that someone needs to do regularly, then we may not be the right service in that regard.

However, our instant notifications, transparent roadmap, smart budgeting tools, API integrations, modern fluid app design and world class customer support amongst others are key driving features for many people, and exactly the sorts of things many people want, need, and aren’t getting from older established banks.

We have lots of exciting and new ideas that we will be bringing to the table, and perhaps one day we’ll be able to move you over from Handelsbanken, but if not, that’s all good too! We’ve found that many people aren’t happy with their banks, and those are the people we want to attract. As their architecture and platforms continue to age and impede their ability to move with the times, we foresee a lot of people becoming dissatisfied with their old banks.

As someone who is happy with the service they get from your existing bank, we are happy for you! :grinning:


#3

I spoke to one of your colleagues a few months ago and asked if I could download my Monzo bank records. I was told that was impossible.


(Simon B) #4

There’s your problem! :grinning: We just launched in-app Bank Statements on the 25th January :grinning:


#5

Fair enough and better late than never. I still feel that a purely algorithmic service that automatically rejects a £100 overdraft facility for someone that most banks would die for as a customer may be limiting itself a bit. And while your young customers may baulk at the idea of talking to a bank manager I think it likely they will change their views as they get wealthier and older.


(Simon B) #6

Our overdraft facility is still in a very early stage - in the future we hope to be able to use additional data to influence or modify any decision. I do appreciate that right now it can be a bit of a “computer says no” situation and we certainly hope to improve on this :grinning:


#7

This, I am afraid, is the problem with computer-based systems and banking. While the systems may work (to a degree) on averages they will reject and annoy those not in parameters. Basic needs, basic banking, but that’s hardly profitable for you. Although I don’t need a £100 overdraft, it’s somewhat insulting not even to be in consideration for one.


(Leon) #8

Why? As in life everything is subject to status. It’s a pain, sure I hear you but Monzo is a business not a charity so ultimately it can approve or refuse as it sees fit.

Sorry but your post to me sounds like I am rich 0.5 of the population by income how dare you not offer me an overdraft. In a word entitled. I apologise if I am reading your intention wrongly but it is what it is.


#9

I don’t think it is entitled, but justifiable annoyance. If say, one bank is giving you a £3,000 overdraft facility based on your income or assets or whatever and you consider moving to Monzo and they won’t even offer you £100 you are unlikely to move your account.

Equally if Monzo do not offer you £100 but Starling offer you £1,000 you likely to go to them.

This is why Monzo needs to revisit their criteria or formula. They may be losing customers now who could have been long term and loyal.


#11

You can just say HNW or in higher tax bracket instead of 0.5 as that looks a bit vulgar to some


(Leon) #12

Like I have said everything is subject to status. I want a platinum credit card even if my earnings might not justify the above. Stamps feet. Life is SO unfair. I sound self entitled don’t I? What’s the difference?


#13

The ironic thing is true HNW customers don’t care if their card is platinum or not and some have more discrete designs that not so obvious like the silk card from Coutts.

Also some poor-credit cards with high APR are now available in black or silver, so it makes a mockery of the meaning of particular colours.


(Leon) #14

Definitely I’m basically saying it would be silly for me to blame others for my own shortcomings. Which is what I can see the OP doing.

His credit score is less then prefect because of what the OP did or did not do, then complains because of not getting a overdraft. Which was not available to him because Monzo has not gotten around to offer him one yet.


#15

There is an issue though with fintechs in basing overdrafts on credit history. A good bank like Handelsbanken, Drummonds, Holt’s, Adams, etc will look at how your circumstances have changed, and if say you defaulted on your £20K credit card but have now got a new job at £180K, for them that new salary flow is more important that the red marks in a CRA file.


(Leon) #16

Ah but they primarily deal with HNW individuals so they will be much more likely to be flexible.


#17

They are flexible. They never gave me a list of bank charges for example, they discussed possible bank charges with me when opening the accounts and agreed with me a tailored set of charges I was happy with.


(Leon) #18

Wow! That’s really decent. What do you think of First Direct? I’m kinda torn to be honest as they where all nice when in credit but when in debit (within my overdraft) you could hear them almost sneering at me when telling me my balance. They were my first grown up bank account as I joined them at 18.


#19

I had left my ancestral home and moved into London but First Direct turned me down due to living in a property with a communal front door, despite my tenants and I having separate front doors off the entrance hall. I was the freeholder of land and a couple of properties in that street, but they perceived a shared outer front door as being a risk of insecure post for receipt of statements and cards. Someone else posted about this very issue here in the community and I think linked to a Guardian newspaper article about it (I may be wrong and it may be another paper quoted). I therefore went to Drummond’s (RBS Admiralty Arch) and later used them for my two business accounts as well. I later moved out of London to the countryside and as Handelsbanken had a couple of branches nearby I now bank with them.

I had however planned to move my main account to Monzo, but a number of things about Monzo made me reluctantly try Starling instead and I have to say I am very pleased so far. Although the Monzo app does have a certain visual appeal.


(Leon) #20

So is your main account with Starling?


(Edouard) #21

Well, my understanding is that if you’re cash rich, why would you even need an overdraft? Overdrafts are there to help people providing them with some flexibility on a very short-term basis, no?