Loans


(Nick) #185

Perfect decision and creative idea, thank You!


(Jordan) #186

But the problem is the marketing was assuming that the customer wouldn’t get there - sure they had “holiday” pot but it could be a holiday spending money in which case they may have a plan of £x a week to get to their goal.

The second “banner” style marketing is a lot less invasive and predatory and I actually think is good as it provides a reminder that Monzo offer loans.

But to have it so prominent on the pots section just doesn’t marry up with the use of pots.

Someone’s £150 is your £5,000


#187

I imagine Monzo would use this type of banner ad when the new account screen is rolled out to everyone.


(Andy Slater) #188

Id say aggressive selling of loans is a very ‘legacy bank’ way of doing things


(Jordan) #189

They’ve been using things like that for ages, it looks to be a home screen banner not an account tab banner.


((╯°□°)╯︵ ┻━┻) #190

A popup that shows once and is dismissable isn’t “aggressive” :roll_eyes:


(Alan) #191

There have been so many Mis-selling scandals that banks need to be so careful how they market loans or other products. If not, in 10 years time they’ll be refunding billions like the legacy banks have had to.


(Andy Slater) #192

no, but targeted advertising for high interest loans is, especially for a company that claims to help people manage money


((╯°□°)╯︵ ┻━┻) #193

How dare Monzo promote a new service in a small scale test! :laughing: That loan might not be helpful to you but it may be to others :slight_smile:

Again. Using words like “aggressive” to describe a simple popup that could simply be moved somewhere else in the app is the reason companies are afraid to innovate these days. Someone somewhere over exaggerates or finds offence in the most simplest of things these days and it’s absurd.


#194

I meant that since pots in the new Account tab look similar to tranascations in the Home tab, the loan offer banners might also look similar in the future.


(Andy Slater) #195

Aggressive selling is a pretty specific thing, singling out the word “aggressive” and claiming over reaction is distorting the context

Targeted advertising is aggressive selling, a loan may be helpful to others but encouraging people to take out high interest loans is aggressive selling no matter how you dress it up.

Again. The pop up isn’t what makes it aggressive selling, targeting people who might be susceptible to temptation is.

For products such as loans, passive advertising is responsible, a hard sell isn’t


((╯°□°)╯︵ ┻━┻) #196

Targeted advertising is well placed advertising because you’re not shoving random things into peoples faces who have no intention of buying it. Monzo have explained their reasoning above and it is perfectly acceptable in those conditions. If I was struggling to hit my savings goal and there’s a chance I could save some money too I’d welcome an advert that could help me.

I also wouldn’t call 20% high either. Yes, it is above what some of the big banks charge but don’t forget Monzo are small fish so they need to iterate on this to be able to offer better and with that in mind it’s not a bad starting point. If you look around there are much higher APR loans and ones even ones that go into the thousands!

Ultimately, if this ever makes it live and you don’t like it. Simply close the popup and you’ll never see it again. It’s still better than being a permanent ad, an email or a spammy leaflet through your door :slight_smile:


#197

What are people using these 20% APR <£1000 loans for?

I’m inclined to agree that people shouldn’t be using these for holidays, and I’m pleased that the loans are no longer being targeted at this group.

I would’ve guessed that these loans would be for unexpected expenses, like car repairs/replacement, white goods etc?

Perhaps consolidating previous debts?

Which makes me wonder how to advertise these :thinking:


(Jamie 🏳️‍🌈) #198

20% is not unusual for sub–£1000 loans, but they’re not particularly competitive.

People up the thread have mentioned around 2.8% but those rates only kick in for loans of £7,500+ over a number of years. They’re not comparing like with like.


(Splodf) #199

Zopa is probably one of the best in this area right? Usually about 12.5% for one year.

If you’re able I’d advise getting a 0% card instead of the loan.


(Dan Mullen) #200

Starling’s loans are 11% for £500 and up.


#201

Many banks probably targets needs for smaller loans with credit cards. My Halifax card has a seemingly permanent 4.9% money transfer offer.

Monzo probably can’t (and I don’t think they should either) jump on the whole 0% bonanza, but hopefully they can offer a slightly more competitive rate down the line.


(Splodf) #202

Ah Starling wins the day then.


(Dan Mullen) #203

Well, I remember bring very critical of Starling when they launched the loans feature, both in terms of how they were advertised and the rate. They still aren’t the most competitive but Monzo’s recent trial makes them look great value!


(Harry Dover) #205

I do wonder who will use this feature, it feels a bit like a planned overdraft but more expensive?

I guess for the unexpected it’s good but surely using an overdraft for up to £0.5-1k would be more effective?

If you’ve used or in overdraft you wouldn’t have any other solution. I won’t be using it but glad they are moving into the space!