This has probably been discussed a lot already (did you search?), but to summarise: overdrafts and marketplace functionality (e.g. relevant offers for your utility needs, potentially cashback deals etc).
Somewhat irrelevant to the conversation about our business plan, but all the profits from monzo.com/shop go to Turn2Us ️. They do amazing work fighting poverty in the UK, and you should totally donate to them, as well as buying t-shirts
I’d like to re-phrase the original question, if I may. As a Monzo believer (and an investor) I would like to do whatever I can to help Monzo succeed - but I draw the line at unnecessary or overdraft fees (sorry! ). So my question is: what would be Monzo’s ideal (most profitable) usage scenario right now for someone who is just operating a ‘normal’ current account? As there’s currently no lending, and therefore no net interest margin (NIM), how does Monzo make money from other activities? Is it benficial if I direct more spending through my Monzo debit card? Hold a larger balance for some non-NIM reason? Set up bills and direct debits? Just spread the word to friends and show off the app? Or even just not use the account much at the moment??
I realise that the costliest customers were most likely those using it exclusively to withdraw large amounts of cash from ATMs in sub-saharan Africa, but who are the most lucrative?
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They certainly aren’t keen on any ATM cash withdrawals.
This is a great question!
I can posit two answers:
spread the word. The higher the customer growth, the easier and cheaper it is for the business to raise funding (which for an existing investor like you is a very good thing). VC investors buy in because they believe it will achieve scale - so help prove them right.
borrow. That’s how banks make their money. If you don’t want or need to borrow, then do as little as possible. Maybe wait for the day they offer bike or phone or travel insurance, then buy that.