Had an interesting presentation from one of the world’s largest banks today, I quote: “fintech adoption has been overestimated”, they didn’t say what their estimations actually were, but I’d be interested to know if they expected digital challengers like to have 400k users (equating to an estimated 0.6% of the UK current account market) whilst still in Beta, not to mention companies like Transferwise now processing £800m in transactions a month.
Does anyone have any thoughts on this? Would you expect more or less usage of Fintech products and services at this point in time?
Yeaah, I would expect the big bank to keep their course and “we are not sinking or even threatened by some lousy fintech company”. I wouldn’t trust a word from big bank/s though. What such big bank can do to Monzo’s growth rate? It’s going to slow down eventually, but it doesn’t look like it’s going to slow down anytime soon.
It’s a process, it won’t happen overnight. That being said, I’m not a special snowflake, I will not be the only average customer that will realise that fintech > big banks.
One possible reason for ‘overestimation’ comments is early estimates for total fintech uptake did not account for many individuals having accounts at multiple fintechs. When you adjust for this duplication the actual number of individuals with fintech accounts is lower than some estimates.
I thought Monzo had 400,000 prepaid customers. But how many will switch to the current account, not everyone I’m sure.
By the time you take off the people who now realise it’s not a travel card, less those who want unlimited free ATM use abroad, less those ‘just seeing what it was like’, it’ll be less than 400,000.
The legacy banks have had a long time to grab their share of the pie. How worried they are by Monzo and Starling I’m not sure. Maybe in a few years if the features keep coming, then the legacy banks may get a bit more competition, but for now the fat cats will remain unconcerned.
Yeah, I’d be interested to see what the conversion rate is like. I’d also be interested to see what the average usage pattern is like - if most people still use a legacy account as their ‘main’ account then just use Monzo for day-to-day spending, I can’t imagine that would worry the legacy banks too much.
Personally, my salary goes into an old school account where it earns good interest, then I’ll top up <£50 into Revolut/Loot/Starling (whichever I feel like using that day) for spending. Bigger spends go on credit card. Whilst I have at least 6 ‘fintech’ accounts, I don’t think my usage pattern would be a threat to the established banks.
to have 400k users (equating to an estimated 0.6% of the UK current account market) whilst still in Beta, not to mention companies like Transferwise now processing £800m in transactions a month.
What such big bank can do to Monzo’s growth rate? It’s going to slow down eventually, but it doesn’t look like it’s going to slow down anytime soon. 
