I also think forecasting would be an amazing addition.
I currently use www.balanceforecastingapp.com, which is amazing, but relies on you manually entering everything - Monzo could do this automatically.
Once you can set up full bank accounts with Monzo then direct debits and regular standing orders can automatically be part of your “spending plan”. You can then manually add any repeating ad-hoc spends that you make every month, such as a weekly budget for fuel, for the grocery shop, the trip to the pub etc.
Using the plan you put together, assuming no unplanned spend, you should be able to predict exactly how much money you will have on any given day, be that to see if you can spend some money in a week, lend someone money for a fortnight without messing up your bills, or to make sure you won’t go below overdrawn by pay day if you buy something today - You could have a graph and table showing your predicted balance trajectory, so you can see if it will go overdrawn during the month ( especially if you get money coming in several times during the month, rather than just one lump sum), or by the end of the month. If you lend money to someone, you could enter the date when they are planned to pay it back, so you can see if you can help them without screwing up your own plan.
Because Monzo will know what your direct debits and standing orders are, once they go through, they can be ‘ticked off’ your spending plan - it won’t change the plan, but it acknowledges that this money is spent. You could set up monthly/weekly budgets to send money to certain people (kids etc) - each time you send money to that specific account, it would deduct from that set budget amount, again keeping with the spending plan, and not changing it. Transactions that are already categorised (like fuel, groceries etc) could automatically deduct from a set amount you have put aside for the month. Spent £50 at a petrol station? Your £200 budget drops to £150, and you can tell the system you normally refuel every Monday. That might not be precisely accurate, but it helps smooth out the ‘lumpiness’ of that spending over the month.
If you go and buy yourself a treat that’s not on the plan, then that would be “off-plan” spend, and would impact on your predicted end-of-month balance. Checking your predicted balance trajectory would show the difference that the spend made.
Monzo could even help you figure out if you can get that treat in the first place - “I’d like to spend …” £100. Will that send me overdrawn at any point in the month? Being able to answer questions like that quickly will help people not to buy first and think later. Thinking of taking out a loan? Will that monthly repayment leave me with so little disposable cash that I will have to live like a hermit?
And the brilliant instant notifications that Monzo already has could be even more helpful.
Done some “off-plan” spending? You could get a notification that your predicted balance will drop to £X, or maybe that it will go overdrawn, so that you get as much notice as possible that you’ve made a mistake, and need to change your plan to rescue the situation.
If you were expecting money to go into your account (such as someone paying back that money you lent them) and it didn’t go into your account, you could get a notification that things aren’t going to plan.
Obviously certain bills have some uncertainty - They might be slightly different amounts, or the date may vary slightly, but you can include worst case scenarios to cover that. The earliest date that it comes out during the month, and the highest your phone bill could be. The beauty of that is that if your phone bill is cheaper than your worst case scenario amount, then since Monzo knows that payment is your phone bill, it can adjust your spending plan accordingly, so that few pounds under is now available in the plan without you having to tinker manually. If the phone bill goes over your worst case scenario amount, then you could get a notification to warn you something unexpected has happened with your phone bill!
This is stuff I do manually at the moment, which can be quite labour intensive, but works great. I have friends and family who don’t have the time or botheredness to do it, and I’ve seen them come to strife because of that, so making that kind of tool more accessible can only be a good thing.
There’s lots of clever ways you could help people to keep on top of their spending, so we’re not spending money we shouldn’t, and so we don’t have to worry about spending the money we can.
Interested to hear what other people think too.