- 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?
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:
they will have enough people interested in opening an account without having to bribe them
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
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
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)
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I’d have thought 
Monzo’s awesome USPs would be incentive enough.
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I was merely asking…
There won’t be. There will be more than enough reasons to switch to us without having to do that sort of thing 
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