0 to 50,0000 customers quickly…
0 to 50,0000 customers quickly…
I know they would never release it but I’d love to know how much has been invested
They will eventually as US deposits for Marcus are reported @ circa $22bn.
Spot on, I think. Especially the second paragraph.
I’m intrigued, though, by what you mean by Starling becoming Marcus?
Just to highlight how “good” the Marcus rate is in comparison to someone whose usually pretty good anyway (Nationwide)…
I received a message about “loyalty/interest rates/savings accounts” when I logged into Nationwide this morning.
Effectively - The longer I’m a member, the better my rate would be - Excellent!
This is what they were offering…
Not exactly pushing the boat out…
I’m going to stick with them. Loyalty is often overlooked in banking, and I’m happy to receive less money.
Said no one ever
You should really send them a screenshot of Marcus and point out “Loyalty not included”
I do remember having a meeting with a Nationwide Mortgage advisor who informed my wife and I… they’re the stingiest lender ever… as they’re not a bank.
I found their mortgages to be decent.
But since moving the majority of my banking to Monzo, they’ve been nothing but a pain!
Incorrect addresses, poor customer service, long hold times on the phone (not Monzo long, but 30/40 mins at times).
The whole experience has been woeful.
Whenever I hear about how good Nationwide are I think back to my woeful experience with them about 20 years ago - your’s echoes it exactly.
Last time I used Nationwide about five years ago, I think there was a paying in book. Wow, those were the days.
Yep, I found the similar with with the Nationwide Loyalty Saver. They offer a much better rate (5%!) on their ‘Flex Regular Online Saver’ account: but that is limited to maximum deposits of £250 per month (with max of £250 in the initial month) and limited to 12 months. So you won’t get much savings in it, but it is high rate instant access and any excess I just move to Marcus.
Nationwide are quite ‘funny’ they make a lot about members and loyalty, but when I needed a mortgage it was easier+cheaper to use Halifax (even though I had a house-buying ISA with Nationwide which would have given me an extra £x k ‘free’), for remortgaging they aren’t even in the top 10, for loans they are quite poor, for savings nearly laughable - and that’s with 5yr+ ‘member loyalty’! Other companies seem to give better rates without that requirement.
Thanks @Peter_G, to me, that’s the real paradigm shift in financial services. It’s interesting that a lot of people within financial services struggle to understand or buy into the idea, and that includes fintech fielded founders.
Apologies for the lack of precision, more a thought that it’s not beyond the realm of possibility that GS could acquire Starling to gain a small but significant foothold into UK current account banking. Retail banking services are becoming increasingly important to the big guys, where the regulatory environment post GFC has required big banks to simplify their operations and focus on core banking, i.e. lending deposits and creating money. My own view is an investment, by GS in a ‘neobank’ or ‘platform bank’ could be a tidy hedge against the tide turning away from former model, and would simultaneously offer exposure to the opportunities of both models.
But the effective rate is more like 2.5%. You only get 5% on the first £250. And 11/12 of 5% on the next £250 etc. It’s not shabby, but not exactly what most people would expect when they hear 5% interest.
I would hypothesise that for a large customer segment, the lack of interest on account is one of the main reasons for not using Monzo to put their salary into.
Apologies if this has been discussed many times before - I’ve been away from the forum for a little while. It feels like there is a real hunger in the UK for better returns on “liquid funds” at the moment - by liquid funds I mean liquid cash such as funds outside of shares/investments/property that customers need to have access to on a daily basis to pay bills live on etc.
In my opinion, good and even responsible financial management requires maximising returns on this liquid cash wherever possible. The current value adds of the challenger banks will not be enough (for some users) to encourage giving up this return and therefore they are unlikely to house their salaries in Monzo or equivalent. Ultimately getting users to shift their liquid cash over to Monzo is really important for eventual profitability and engagement.
A marketplace integration with Marcus given the “easy access” nature of their account would seems like a great option that would be beneficial to both Monzo and Marcus. Access to millions of potential users for Marcus and a revenue stream based on a reasonable commission from Marcus. This should be relatively easy to get going and this quick revenue stream would be very valuable for Monzo (and Marcus).
Perhaps this is very obvious but I wanted to write it down in the interest of open thought being helpful to Monzo customers and Monzo
Keep up the great work all!
I did hear something about Marcus being the backend (and legal requirement as a fully licensed bank) for Apple Pay Cash in the UK. Perhaps this is something to do with it???
Interesting. This is more to do with their new customer care centre opening next year with 150 staff.
Goldman Sachs will be the potential backend of Apple Pay Credit Cards.
Green Dot Bank is the backend of Apple Pay Cash in the US not Goldman Sachs so it doesn’t directly mean they will use Goldman Sachs for Apple Pay Cash in the UK. Then again, you never know. The only thing which is known is the potential Apple Pay Credit Card link up.
These services are provided by Green Dot Bank, Member FDIC.
Do you think there’ll be a Marcus app on the way soon?