Why I don’t like the idea of this is because swallowing this cost means less money is available for other things. Whether that means being able to hire less COps, or experiment with other features, any cost swallowed has a side effect somewhere.
Thats just it though i know personally ive used cash deposits twice in the last 2 years… thats less than £1 in costs for me per year for this feature roughly. Do monzo make that back from me in a year? Yes they do and some.
Is the bad pr worth not swallowing these costs? I dont know but id like monzo to have done some research on this. I know when i mention it to people they laugh and think thats not very “forward thinking” of a modern bank.
And your point about swallowing this means less money for something else… well that can be said about anything monzo do really. Look at the money theyre missing out on atm (0.15%) due to poor planning of the interest bearing pots? That profit could have covered this maybe not. Referral fees… could that £10 per referral but allocated somewhere else. And so on and so forth
While I come to a different conclusion that is a very well reasoned post.
If everyone only used cash deposits once or twice a year, that argument might hold water. But plenty of people make regular cash deposits once or twice a month - or week! That would move the decimal point over by a fair margin into “wildly unsustainable”.
If that means that there are people who will decline to open a Monzo, that’s fair enough. There are some people for whom Monzo wouldn’t be a good fit, and that’s the same with any company or offering.
Why are you so quick to assume the worst?
Monzo already did exactly that. They sent the survey out before they even introduced cash deposits, it asked about how frequently you deposit cash, where you do it, the amount of cash you deposit etc. I was one of the people that filled it out.
I didnt recieve any such survey?
And this i understand and agree with but in the grand scheme of things im not too sure if the average would be anywhere near that high. Why should people just be told “monzo isnt for you” if they fit into this category. This is a basic usage of a current accout and i like monzo want to “make money work for everyone.
I could swallow it better if monzo came back and were able to give indepth analysis on this instead of saying the functionality for cash deposits is there… what more do you want.
Foreign atm withdrawals limit was a hard pill to swallow for some and me personally as it was one of the wow features but i couldnt fault that they said look a minority is ruining this for x and y reasons and were now going to ask you to alter your habits slightly. I believe they could have saved face here and said look we can give you 4 a year and then its going to cost
I think im personally now taking this thread off topic
If post office deposits were brought in i wouldnt ever use them due to being able to do the exact same action in the exact same location… only hand over a different card and save myself £2.
If Starling and other banks can do It for free - There’s no reason why Monzo can’t.
I wouldn’t say it’s as blunt as “Monzo isn’t for you!” I’d say it’s more along the line of “This is what we have to offer, and we think it’s a great offer, but we’ll understand if your priorities are elsewhere.”
On a certain level, this sort of thing happens all the time. With everything. I chose Monzo because their offer is the best fit for me. But I chose Marcus for savings because their offer was the best fit for me. I chose my car because I had certain criteria and one matched best - didn’t mean the others were bad, just they weren’t right for me. Even down to buying a kettle - plenty of good options, but only one that fit what I needed.
So while Monzo want to “make money work for everyone,” they will recognise that there are people out there for whom the current offer won’t work as well as offers elsewhere, and that’s OK.
Finally, the foreign ATM withdrawals situation is exactly what you’re asking for when wanting evidence that a bad situation could develop. There’s precedence for large usage by a small minority bringing unsustainable costs to the business, and that’s why Monzo have gone with a free from the off for the cash deposit feature.
They have left the door open for removing the fee in the future if they feel the balance is right, they’ve said that a few times on the forum. So maybe things will change once they’ve had a long enough period of actual usage to assess.
When Starling and Revolut offer a much better service for travelling abroad, and Staring with cash deposits, it’s hard to see what Monzo’s USP really is.
Revolut don’t have a banking licence, their advertising is horribly misguided, and their corporate culture appears rotten (example one, the response to the advertising errors; example two, the bloke who bagged on Freetrade on Twitter but neglected to say he worked for Revolut.)
Starling feels more ‘corporate’ and I like the Monzo app experience better. I don’t travel at the moment so that’s pretty irrelevant to me - though even if I did, Monzo would be no worse than Starling for me as I wouldn’t be withdrawing huge sums of cash from ATMs. Paying for paper statements is a bit off-putting. I’m happy to accept that there are people for whom Starling is a better option, though. At the moment it comes down to what areas are more important to the customer making the choice.
While monzo are aiming to be as inclusive as possible theres also the balance of them being a “digital bank” pushing the boundaries and not being dragged backwards by older methods such as cheque books.
In some respects I can see how it applies here to cash deposits. If you still heavily rely on cash a digital bank may not be for you.
That doesn’t fit with their ethos of wanting to sign up 1 billion people though? What about international expansion? Not every country is as card reliant as here. When I was in France in the summer, some places didn’t even accept card payments, and others can impose a minimum payment amount.
Heh @ some…
Hmmmm I’m not sure about that you know, as the homeless relay a cash quite a lot. Like you said maybe Monzo should give up on the unbanked part of the market then as a digital bank might not be for them.
That was really dismissive, now I’ve reversed what you said it starts to sound a bit silly does it not?
I was talking to a French friend the other day, and she said there is still a lot of cheque use over there, and something like Faster Payments is expensive/not used much. Don’t know how representative this is, but I was
Cheques are weird in France. They hold the importance of cash. They can take as little as 24 hours to clear, and ive known people to literally get the cheque and go straight to the bank with it so it’s all the more important you have the funds available when you write it, and there are strict penalties for bouncing them. It is remarkable when you turn up to a supermarket wanting to use Apple Pay and the rest of the shop are getting their chequebooks out, you feel a bit like youve time travelled back to 1985…
It doesn’t sound silly to me, not trying to do everything at once sounds like a practical reality.
To me not focussing on the non-digital first market with all available resources sounds like a solid way of making a business with stable foundations that can last long enough to gradually make the sort of exceptionally long term investments in the huge social undertaking that tackling banking for the homeless is.
Are LINK still offering the Universal Cash Deposit Transaction on LINK network ATMs? That would handily solve the OOH availability issue (24/7) and Monzo might be able to negotiate a lower LINK rate by being the first to take it up.
Back on topic …
Personally I’m not sure this depositing cash at the Post Office for £0 is going to be a thing much longer.
Sure Monzo are going to potentially get some stick for charging from the outset, but that’s better than charging later — look at foreign ATM fees.
People will argue that Starling or Revolut offer it for free … sure, but they make up the costs elsewhere.
Personally I don’t put cash in much, so the cost doesn’t bother me … however, getting ahead of the curve & not increasing costs for customers is much more advantageous & transparent.