If this is included in the weekly Perks offers, I’ll pay the additional £4 a month to upgrade from Extra.
1 Like
Enjoying the two paralllel discussions of spam that are happening.
7 Likes
So much this. It’s one of the many things keeping me away from Monzo. It just feels like a free app that I have to pay a subscription for.
All banks have to upsell, I get that, but at least make them relevant and also make them dismissible.
2 Likes
How can you not have seen Monty Python’s SPAM sketch? 
2 Likes
We had Spam dipped in batter and fried at primary school. Very oily but one of my favourite school meals.
6 Likes
Wasn’t Spam also included in the ration packs? 
Unsure how the mods are going to tidy up this thread. We have covered everything from minimum ages to join the community to “Imma”, “Gonna” and… Spam.
In any case, best get back on topic I reckon.
Here goes a feeble attempt to re-rail the thread.
First, I like Extra. I see the subscription as if I’m paying for a finance app; like paying for Emma, but it looks much better and has much less bloat. And the recent reduction to £3 makes it even more pleasing.
Second, I don’t like pushy strategies, but I also am a bit perplexed. UK banks have been making profits for years (decades?) offering free banking for the vast majority of their customers, with only a small profit coming from premium bank accounts. Why is it suddenly so important for a bank to push premium products so aggressively?
2 Likes
Lending. The big banks have loan books into the hundreds of billions.
No bank would survive just by providing a free current account.
Monzo are right to focus on paid plans, in my opinion. Perhaps a little less aggressively though. This alongside increased lending should help them achieve significant profits.
4 Likes
Legacy banks have, since the 80s, treated free current accounts as loss leaders to gain a relationship and hope the customer takes other products to make the relationship overall profitable. Mostly mortgages, but also loans, credit cards etc.
They also used to make a mint on charging fees for unarranged overdrafts, bounced cheques, failed DDs etc. although that has mostly been consigned to history now.
4 Likes
Right, so basically lending, which Monzo is already doing and could/will? do more.
Don’t banks also make interest by depositing with the Bank of England while not paying out interest into current accounts?
I got this yesterday. I don’t overly mind as it’s relevant but is it going to come back on every purchase? I haven’t been to Greggs for 18 months so can’t/wont really test it.
The cashback ones are worse. “You spent at Gucci. Check out this great offer at Dobbies”
7 Likes
Their lending quotas will be based on their total deposits and subject to various other formulas and rules. They can’t just lend unlimited sums.
Bigger banks are less restricted, as they have huge balance sheets to support the lending. I’m sure if Monzo could, they would be lending like crazy and even in the mortgage sector. They can’t - but until they can, paid plans are a good target.
1 Like
They’re a bank, so yes they can do things with the money you deposit with them within certain defined limits.
Depositing with the Bank of England is the safest of those options.
Obviously some plonkers will leave huge balances sitting in current accounts.
For some people, it’s about reducing anxiety and general peace of mind. I’m aware that keeping significant sums in a current account is silly, but the lost interest is a small price to pay for the comfort.
I tend to keep my current account above X and then all else goes into investments. Happy to be a “plonker”.
1 Like
Depends on what X is as to whether or not you’re a plonker
It’s not millions, I can assure you 
1 Like
I think the same. Although, it’s not something you would say often, as it would make you about as popular as a fart in a lift.
I would rather pay for my banking than have my bank exploit the vulnerable for profit, to both mine and their advantage.
2 Likes
Aye, there’s no right or wrong answers anyway. I’ve only recently started running our accounts with under <£1 balance typically, after years of trying to get everything to automate optimally through the month it’s Chase which has finally made it somewhat viable with their savings accounts which behave like current accounts (accepting standing orders and direct debits).
1 Like
Not sure how mortgages cultivate exploitation, seems a leap?
Banks don’t want mortgage customers to default, that’s not how they make money (usually!).
2 Likes
Agree. Credit card pots would be such a useful import from Monzo USA. And it’d make sense for it to be a Extra/Perks/Max feature…
2 Likes