This morning, I had a direct debit declined because of a lack of funds. I also had a payment come in that would have covered this direct debit. Other banks (all of the “legacy” ones, and newer competitors such as Starling) operate the retry process: essentially, they let you know that your direct debit has failed, and give you until at least 2pm to add cleared funds to your account, before then retrying the payment later in the day. This way, any issues arising from not paying the direct debit are avoided.
This issue has been raised before on the forums, but doesn’t seem to have had a conclusive answer. I asked about it in the in-app chat, and the response was less than clear. This is something that a long list of Monzo’s competitors do better – can Monzo match, or better, their competitor’s approaches?