Incentive on the cards?*


(David Hughes) #1
  • Ouch! (Sorry, couldn’t resist the pun.)

To be serious. When Monzo introduces its debit card facility later this year, will there be a seductive financial offer to persuade/encourage us to switch our legacy accounts…? If so, how much?


#2

At one of the Open Evenings I went to, Tom said there would not be a financial inducement to switch to Monzo.

NB:
There could be many reasons for this but thoughts that come to mind are:

:black_small_square:they will have enough people interested in opening an account without having to bribe them

:black_small_square:they don’t want people switching from one bank to another to get free cash as they will leave Monzo for the next new bank to offer them money

:black_small_square:they are a new firm and need to break even or turn a profit as soon as possible, if currently they were losing £40 per customer in their first year giving away £100 they would lose £140 and when you times that by say 400,000-500,000* customers you see the scale of the loss

:black_small_square:they can not cross subsidize a free cash offer from another part of the business like a huge bank group can

(*customer estimates based on a mix of new customers who just discover Monzo after current account launch and existing customers opening the new account and perhaps recommending a friend)


(Jamie 🏳️‍🌈) #3

I’d have thought :monzo: Monzo’s awesome USPs would be incentive enough.


(David Hughes) #4

I was merely asking…


(Simon B) #5

There won’t be. There will be more than enough reasons to switch to us without having to do that sort of thing :grinning:


What We Know About the Current Accounts & Debit Cards / FAQ :bank: :credit_card: (open Wiki)
(system) #6

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