How are we not? For instance, take online banking , it was not even really a thing say 10-15 years ago, we now have mobile-only banks, you can enter into mortgages without really picking up any paper, the transactions are all done online.
The statistics of digital payments is staggering. I can only see this moving one way - towards almost completely digital.
You said it yourself.
I didn’t say it wouldn’t be the majority, just that non digital banking won’t go away because it’s simply reliable and world wide.
I’m a doctor and I get cheques from various funeral homes when I fill out a cremation form for patients of mine who’ve died (morbid, I know). This cheque is given to the hospital I work for who then pass it on to me to pay in. I can’t demand the hospital stop accepting cheques as this is how the funeral homes pay doctors and all the hospital does is pass the cheques on.
Contacting the funeral home to ask them to cancel the cheque and send me an electronic payment is an option, but I’d have to do this ad hoc and won’t stop them providing cheques for other doctors working in my hospital. Chances are they’d just send me a cheque next time anyway.
So cheques are a reality for me in the forseeable future. The funeral homes are just providing me payment as they know my name, not my bank details.
Just because it’s “archaic” doesn’t mean it doesn’t work.
As is Digital Banking, the same argument could have been used for bartering with Sheeps and Cows.
To be fair to me I never argued that they don’t work, they absolute do. Just not as well as what is now considered to be “normal banking/payment services”.
I can see your position and the need to have access to a cheque payment system that works. I’m not sure if I’m in the minority or you are as it seems deeply entrenched in your profession.
If you could (and for arguments sake Monzo had cheque imaging) would you continue to use this practice or change it up and innovate?
I wish I didn’t get some cheques. They’re a pain in the arse!
I actually didn’t know cheque imaging was a thing until I joined Monzo last November. So it seems like a really neat way to avoid having to take a lunch break to walk to a branch and pay it in.
There will always (and should always) be a place for cheques in my opinion. All the issuer needs is your name and it removes you having to disclose your bank details. In the age of data breaches it’s comforting to know there’s a way of accepting payment without having to disclose information to people I don’t know or trust.
For every day use there not used much, but they are for a whole host of banking here and elsewhere. I guess the question is who does monzo cater to? There not a full service bank, but there’s lots of people that initially looked like monzo might be good for that is now looking like it won’t be or isn’t.
It very much seems that way! (Hence my argument to just “all but” get rid of them).
To some degree I agree, they are that sort of “last resort” payment - but then again I still don’t have a cheque book so couldn’t write one out even if I wanted to!
I feel like a cheque is that weird type of payment that will in all likelihood hang around forever with some swearing by them.
Now I’ve just had a thought - what if you could COMPLETELY digitalise cheques - no need for a physical book - you just send it via email or through your Banking app - it’s written as a cheque would be today but can be completely processed from end to end digitally (granted would still need Monzo to allow for imaging of them) but you’ve then comepletely digitalised it (have no idea if that is even possible tbh).
But isn’t that ok? Monzo doesn’t and probably can’t be for everyone - they can try their best but naturally there will be some things that just don’t marry up.
Take interest rates on their new savings pots. People are understandably angry about cheque imaging stating that “they shouldn’t have to go elsewhere for it” but then will say in the same breath “the interest rates aren’t as good as this other account I have with X”.
There is a clear disconnect between the two, either you want everything in Monzo or you don’t. That is just how I see it anyway
I don’t think we can say Monzo are taking a stand here against cheques because that just isnt the case.
Apple removed the headphone jack how many years ago and that still hasn’t taken off and they are a market leader not a small bank with <5% of the uk marketshare.
This has a whiff of not a money maker for us so why waste our development… all too common from monzos end since the last raise unfortunately.
Why would someone be disincentived to hand out cheques because people struggle to cash them? It’s beneficial to them if they aren’t cashed
I agree absolutely. Monzo doesn’t need to be a full service bank. They can offer whatever they want. And you right no one should be angry or upset, or maybe a little miffed as they thought it was coming. But if it doesn’t suit then use another bank there are lots of good ones out there and there much better than a year ago.
The problem is monzo appeared to present its self with a particular image but it’s not clear what it is anymore. Who is this bank for?
If I know how much of a pain it is to cash in a cheque, I in turn, wouldn’t write one out, not to mention it being easier to just transfer the money electronically.
I’m surprised Monzo haven’t looked into an arrangement with one of the banks that they are challenging to provide an imaging solution that they can partner on ie big old bank handles all the back end clearing whilst Monzo provide the shiny imaging capability on the app - maybe they have considered it but the business case (or sullying of image to be seen getting in bed with the old boys!) didn’t stack up? Monzo - anything to say here please?
Tbh it’s perfect for me, I can see everything I’ve spent, what I’ve set out for the month, my committed spending and I can divide it all into separate pots to help with saving (when the amounts aren’t big enough to justify interest gaining).
I don’t deal in cheques or cash (maybe take £10-20 out every 2/3 months).
I wouldn’t take more than £200 of a foreign atm as I’d take some cash but mostly spend on the card.
i would love to hear someone from Monzo answer the question that I posed - don’t think Cooky geezer has responded so far - i.e. is the business market that you are targetting going to be constrained by an inability to bank cheques - a still prevalent form of payment amongst many segments/sectors? Average personal customer - probs not gonna worry and most have legacy banks for the rare occasions where relatively low value non urgent funds are involved (train refund, xmas money etc) but when it comes to business accounts I suspect a different matter as cash flow is somewhat more important. I’m no luddite I can assure you - cheques will phase out in due course and nobody will miss them, just like we don’t mss the days when gold was transported by stage coach - my concern is how Monzo’s strategy to put the business account project ahead of the cheque project has been arrived at as the here and now is that they are probably not mutually exclusive. James Berry - are you at liberty to comment on this?
You can bank cheques. You just have to post them to Monzo.
If that’s not something you can cope with doing you shouldn’t even be considering a Monzo BB account.
Sure if my wife wanted some cash I wouldn’t hand her a cheque cos they’re a pain but say virgin media aren’t going to stop handing out cheques just because Monzo make it a hassle for their customers to cash them
Monzo can’t clear cheques it is not a member of the Cheque and Credit clearing company, so any solution would involve another bank.
Digital bank transfers are far from universal apart from SWIFT (enormous fees) and SEPA. SEPA being another example where Monzo has dropped the ball on implementing a boring basic bank function.
Yes I realise that but were they ever considering membership of C&CC as part of their now abandoned imaging project, and if not I don’t see what their barrier to entry was. Perhaps we’ll never know