Extraordinary ideas that only Monzo would try!


Integrated crypto wallet

(Only available in amateur ) #42

Introduce the Monzocoin :thinking:


Not extraordinary, but I would like to see Monzo do retailer offers like traditional banks. e.g.

However, Monzo should implement these much better than traditional banks. At traditional banks you have to periodically monitor the retailer offers page to be aware of relevant offers. Monzo could automate things by have notifications for relevant offers pop-up in your home tab (on an opt-in basis) based on past spending habits and geolocation.

(Tom Halloran) #44

Create a new type of mortgage that takes a fixed % of your salary for as long as it takes to pay it off e.g. 25% of take-home pay.

Ideally Monzo would assume higher earnings in future which would allow young people to borrow more now than they’re currently able to, helping them on to the housing ladder

(Andrew Clark) #45

Subscription Market Place: to be listed in Monzo’s subscription market place you would need to sign up to their terms:
1: join with a click -> must be able to leave with a click
2: clear terms
3: special discount for Monzo users
4: guarantee like Direct Debit guarantee - money back, assuming customer right rather than supplier
5: other ethical ties such as living wage, pays U.K. tax etc

Gyms, razors, food boxes etc. Safe framework for Monzo customers and ready market for suppliers. Small amount from supplier profits goes to Monzo.

(Nathan) #46

I’d like to see a price comparison website/app that takes student discount/cashback/available online codes all into account to see which is actually the best deal.

Retailer A: £20 rrp but with 10% unidays student discount = £18
Retailer B: £19 rrp but has 6% cashback = £17.86
Retailer C: £22 rrp but with 20% off online code = 17.60

Would be nice if something like this could happen automatically without the need to shop around and do the math myself.

(Nick Child) #47

Has anyone used FreeTrade? I think Monzo could do it better, investing without the transaction fees, like Robinhood in the States.

(Rob) #48

I was just thinking about something similar as I’m not convinced the government help to buy scheme is working. Rather than people put 5% in and the government 20% for the deposit, as its almost imposible to save that 5% for most young people now paying extortionate rents, why don’t the government just put in the 5% deposit and get the remaining 95% from the bank, the 5% deposit loan from the government can be managed and repayed via salary in the same way a student loan is. This should open up housing to more people as they dont have to save for the deposit which is the hardest thing to do, providing they can afford the mortgage repayments.

I never considered the bank doing it as a percentage of salary as that seemed crazy but maybe that’s just the extraordinary idea needed. Not sure 25% of take home pay would be a lot though as you would always need to pay off interest plus part of the capital, and i guess if interest rates go up then if you dont increase payment (as salary increase may not keep up) then you risk the interest being higher than payment and thus increasing your debt, so not so sure this would be a good idea, seems risky for the bank too so not sure a bank would want the risk, but if the government could take the risk (it wouldn’t be a big risk as they would keep taking that payment from your salary until you retire or it’s paid off) for the 5% deposit then i dont see why a normal mortgage for the rest of it wouldn’t work. Perhaps percentage of take home pay on the mortgage side would just be more a tool to figure out what size mortgage you could afford

( related to Monzo CEO, Investor in Monzo ) #49

probably because the Banks don’t want to take the risk having been burnt before with negative equity, the home owner with no skin in the game just walks away, with the taxpayer on the hook for 5 % and the bank for the rest - lol or at least until the banks can shift the risk on to the taxpayer :slight_smile: , the homeowner gets to get all the potential gain yet none of the risk ?

Now if the gain on all house price sales was then taxed as CGT I wouldn’t have a problem with the taxpayer putting in the 5 % deposit :slight_smile: but I dare say a lot of people that have made profits on house sales would object to paying CGT in the tens of thousands of pounds :slight_smile:

(Jack) #50

Using merchant data that’s currently displayed in app and corrected by suggestions to open a yelp style service?

(Harry Rushworth) #51

I wouldn’t mind a one off payment to design my own card. Think it’s a great idea! :smiley:

Metal with choice of colour OR plastic with choice of colour or photo
Choose how to display your name: Mr A Smith, Mr Andrew Smith, Mr AB Smith, Mr Andrew Bryan Smith, no name
Choose to get details printed either horizontally (normal card) or vertically (as some start ups are using)
Choose to get ALPHA/BETA/INVESTOR stamped on if relevant
Could also choose whether or not to display card no, expiry details, account details, etc. (but always accessible in app)

(Stephen Wright) #52

Not sure if this has been discussed elsewhere and not sure how you might monetise it to make money for Monzo, but some sort of facility for charitable giving might be on trend at the moment.

(Rob) #53

No, the homeowner doesn’t just walk away, they would still have to pay the government back the 5% deposit (Or less as they would have been paying this off) through a percentage of their salary in a similar way as how student loans are repayed.

Also as the LTV is 95% (Not 100%) then this would protect the bank from a 5% drop in house price, if the buyer defaults straight away, presumably this wouldn’t be likely to happen straight away as affordability checks are more stringent now the days of self certification is over. If a default happened after say 5 years then you would think there would have been some raise in house price which would help offset any fall plus 5 years of repayments would also have reduced the LTV, so the bank should get it’s money back.

Also there would be nothing stopping the buyer putting in a percent or 2 or more to help reduce the risk on the bank and thus get a better interest rate. Maybe if the gov insist the buyer has “skin in the game” then even 1% would be far more achievable for most people.

Affordability is the real key not deposit. The gov 5% deposit should negate the risk to tje bank of a fall in house price, the way the gov loan get repayed through salary should negate risk to the tax payer. There are plenty of people who can afford a mortgage but can’t save for a deposit as they are paying extortionate rents.

(Rob) #54

If your home has increase 50% in value then no doubt the house you are buying has also raised in value, so you’ll never really see this money unless downsizing, selling your home to become homeless or are a landlord with multiple properties cashing out. So I think any CGT should only apply to landlords with 2nd properties

( related to Monzo CEO, Investor in Monzo ) #55

What if there was a 10% drop in house prices or 15% or 18% that was calculated by the treasury not so long ago ? - maybe this “ponzi scheme” of house price inflation is what is causing the escalation in prices, some people see it as a sure bet to increasing their pension pot rather than a home to live in , and if they then don’t need a deposit because the tax payer pays it and the bank then pays the rest , the “owner” is just renting , with no monetary commitment to the house and expecting to get all the gains , with thanks to the taxpayer and bank who just get the “rent” - which then makes getting on the housing ladder harder in the first place because it makes housing more attractive as a tax free "investment ".

lol CGT is only fair when someone else is paying it on their gain ?

perhaps we should have a different thread to discuss house prices , are they worth it , rather than me derailing this thread :slight_smile:

(https://youtu.be/5DmYLrxR0Y8) #56

A community charity pot where monzo customers can choose to have roundups go, or transfer money into directly. Customers suggest a monthly charity beneficiary and they’re voted for, or picked at random.
A log of your charitable donations is kept for you to see in the app.

You can have an app icon for your generosity.

(Rob) #57

Then they would be in negative equity same as if you bought with a normal mortgage.

It would only be available to first time buyers. The owner wouldn’t just be “renting” as they would be paying the gov back directly out of their salary and also paying the bank back (an interest only loan wouldn’t be allowed). Every payment they make would increase their stake in the house, the mortgage is the monetary commitment.

I’m not say CTG is only fair if other people are paying it. I’m saying it’s often a fake gain, as you’ve mentioned house price rises are a bit of a ponzi scheme. For example if I buy a house for £200k then after ten years its worth £300k, now I need to move for a new job, so I sell my £300k house and buy a £300k house elsewhere, that £300k house i’m now buying was probably also worth £200k ten years ago so whilst it looks like there is a £100k gain on my original house it’s meaningless (aside from the lower interest rate from the lower LTV) as I won’t get that money as the house i’m moving to has gone up by £100k. So if you tax that £100k then it wouldn’t be fair as its not a real gain, you are just taxing moving which is what stamp duty does. You would only ever gain from the capital if you downsize otherwise it’s a fake gain.

Yes starting to diverge from the original topic, the house market just annoys me so much there has to be a better way of doing things than the what we have now. I’ve no idea how to set up a side topic lol.

(Only available in amateur ) #58

How do you think Monzo could do it better?

(Nick Child) #59

They still don’t have an android app, I just got an email from them saying I’m being removed from the wait list because I haven’t downloaded the app (I have).

Their execution is slow and sloppy, I haven’t got that impression from Monzo.

(https://youtu.be/5DmYLrxR0Y8) #60

Did you know Monzo was iOS only at the start?