Loans


(Marcel Ruhf) #82

Yes - but this goes much further than what Starling did (advertising it at the bottom of transaction screens). Monzo is encouraging users to take out a ~20% APR loan to reach their savings goals faster. This, in my view, is quite irresponsible and unethical.


#83

I suspect that this is an extension of that, with the idea being that you’re saving for a big purchase, and that you could make that purchase sooner with a loan. I would be surprised if the intention was to lend you money to put in a pot that doesn’t earn interest.

But agreed: this is bad.


( related to Monzo CEO, Investor in Monzo ) #84

whilst I agree that this doesn’t look great ethically , maybe everybody is getting a bit ahead of themselves in what might be a very limited trial to get feedback for the idea - looking at my pots - those in which targets are set, and having not reached the target I haven’t got a loan offer - maybe its a (bad) testing to see the response ???

I do wonder how many have received this offer apart from one poster - I am sure there are more ???


(Marcel Ruhf) #85

Quite frankly, I’m getting tired of the “trial” excuse. This is just indefensible in my view, even if it’s “just a trial”.


(Jolin) #86

This doesn’t sit right with me, either. Would be interesting to hear from Monzo what metrics they’re using to evaluate whether this is a good idea.

This also doesn’t sit right with me. We don’t need to go down some sort of mob justice route every time we don’t agree with a trial Monzo carries out.


#87

It’s always tricky to know where Monzo are looking for their responses though.

Take the “locked pots” thing - I didn’t see a single person on the forum say that they thought it was a good idea (possible exaggeration, but it was overwhelmingly in favour of not changing anything).

But the reason Monzo gave for changing it was “You talked, we listened” kind of reasoning… As if people had been clamouring for it to be changed?

It felt a little like the hassle for COps was the true reason, but it was dressed up as something else.

I’m not going to roll out the “transparency” line, but things are becoming more and more opaque when it comes to the testing of “features”, that it’s hard to gauge what is legitimate, and what is a test.


( related to Monzo CEO, Investor in Monzo ) #88

I agree , but I could possibly see the discussion going - rightly or wrongly - somebody has set a target for car insurance which we know is due in three days time - they haven’t reached that target for their pot , offer a loan to top up - having said its not justifiable Ive just tried to justify it :slight_smile: :slight_smile:


(Nathan) #89

It feels a bit like monzo are saying we will chance our arm here and see if we can get a few people tha would actually be silly enough to do this.


(Nathan) #90

I also made that exact use case as well but without a goal date this logic cant be used.


( related to Monzo CEO, Investor in Monzo ) #91

the costs of running a business by transparent consensus ???


( related to Monzo CEO, Investor in Monzo ) #92

if you have paid your car insurance in app 12 months ago ??? - I know of one person (from the post) this loan offer has "gone out to " and wow has it caused a bit of a storm on this community and others , 1.5 million objections ?? again not trying to justify it , I think its a bad idea , just another perspective


(Tony, Secret Lemonade Drinker) #93

Some of the responses to this are hilarious.

“exploitation”, “a new low”, “a disgrace”, “shabby”, “indefensible”…

Yikes.


#94

Wouldn’t be the internet if a ripple didn’t cause a tidal wave though? :joy:

But I agree, which is why I still think…


(Dan Mullen) #95

I know everyone has different things that matter to them and everyone has a different threshold for what they find acceptable. I was turned off Monzo when the foreign ATM charges were introduced - I get a better deal from Nationwide. Many people weren’t bothered by these fees, which is fine.

The way overdrafts are calculated… some people didn’t like that money in Pots isn’t taken into account, some didn’t like the 50p/day rate and others thought they were perfectly reasonable.

Charging a pound for cash deposits was the last straw for some people whilst others applauded Monzo.

I won’t go into the whole Monzo Plus debate but it also divided opinion.

This move with 20.6% APR loans and how they’re being advertised appears to have rubbed most - if not all - people up the wrong way. I know Monzo has an incredible amount of fans but how long are people going to defend their business decisions and questionable ethics? Over time their proposition appears to have gotten worse, not better. Such a shame (and I mean that genuinely).


#96

The only counter to that (and I’m not defending your points, which are all sadly very true), would be…

I don’t need to withdraw cash abroad.

I don’t use an overdraft.

I don’t deposit cash.

I won’t be buying the Monzo plus account.

I won’t need the loan if it’s ever offered (I’ve already been offered one on the main screen).

So yeah, I’d be pretty annoyed if I was a customer and happened to use any of the above.

But if I wasn’t on the forum, I’d genuinely see no difference in my Monzo experience - I can’t imagine I’m the only one in that respect.

That being said, it’s felt like most of the decisions that have happened recently have seemingly missed the mark, so I hope there is light at the end of the tunnel and things bounce back.


( related to Monzo CEO, Investor in Monzo ) #97

Nick - same points as I was typing

  • everybody does have different thresholds I agree ,
    I have just been on holiday and withdrew more than my £200 cash limit it cost me £1.50 , I had my Starling card which I could have used, but I prefer to support the business that I use most for my banking. I didn’t mind giving Monzo £1.50, it was a service I was willing to pay for.
    I don’t have an overdraft so it doesn’t affect me. I have had many a discussion about the different methods of charging - I prefer the Monzo model :man_shrugging:
    I dont deposit cash so it doesnt bother me.
    Everybody will - and should use the service that suits them, Im not sure you can base rubbed all people up the wrong way on what is after all a small community forum

#98

I’m going to end up with thorns sitting on this fence, and to reiterate, I’m not a fan of the loans advert.

My concern (if this was rolled out globally), would be people (potentially vulnerable people, ardent “supporters” of Monzo, or just generally not financially savvy), who would see this as a chance to “tick off” a savings goal early.

That is where I see the problems occurring.

If Monzo want to advertise their loans, that’s fine IMO - Plenty of places in the app for that.

I just don’t see the “savings goal” as a place to do it.

But, like I said, I’d love to hear from Monzo about whether this is a test, or what their thought process was behind it.


( related to Monzo CEO, Investor in Monzo ) #99

yep agree , not the right place to put it - I have no problem with loans just needs to be clear and in the correct situation


(Adam) #100

I don’t want to repeat too much of what’s been said above, but I’ll add my opinion to the pile.

Monzo’s aiming to make money work for everyone. I guess this offer of loans to hit short term goals will do that for some people.

BUT

When I joined I (rightly or wrongly) saw Monzo as a bank bucking the trend by trying to help its customers save money and budget. They were a cause for good rather than profiteering. Monzo Plus and now this seem to have shifted my outlook on Monzo as a bank/company.

Monzo Plus seems like them trying to leverage profit from customers with spare cash who are happy to part with it for cosmetic changes / bragging rights. Fair enough. If there’s a market, there’s a market.

This, however, seems to prey on people struggling to hit financial goals by getting them into debt with quite a high interest loan. It just doesn’t seem right.


( related to Monzo CEO, Investor in Monzo ) #101

I think Monzo are getting a consensus view here :slight_smile: - people are fine with loans , maybe even with the interest rates ? but why oh why put it where people are trying to save money to artificially reach a pot target and put themselves in debt to make it a nice round figure in a pot :slight_smile: