Monzo as a going concern

Monzo Chat
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Say what now?

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That was my reaction! If everyone here are fans Iā€™d hate to see how negative the opinions of Monzo opposition gat!

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Monzo can do no wrong?

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I think thatā€™s the precise opposite of what was said.

Now, Iā€™d like to think weā€™re all here for balanced conversation. That means no hatchet jobs as well as no fan-girl/boying.

Back to Monzo as a going concern, pleaseā€¦

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25

Or.

If all of your money is in another bank, you should move some to a different other bank (which could be Monzo).

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I have said at least three times before on this forum (I just checked) it is a good idea to have at least two current accounts (ideally one visa one MasterCard), whether with two legacy banks, two digital banks or one of each, in case of outages or any other issue. Fortunately both of mine have an overdraft facility so Iā€™m happy for my back up bank account to have Ā£0 in it.

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27

I suggest the number of Plus attempts says otherwiseā€¦

To go back to the original question which weā€™ve never really addressed, if it gets so far down a funding rabbit hole that no further funding is forthcoming, I tend to agree that someone, somewhere will but the whole lot up before we have to fall back on the FSCS guarantee.

Whatever happens, I donā€™t expect any customer facing drama any time soon.

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28

To be fair though, while not the Carillion auditor, it is the same auditor which gave the same warning (material uncertainty over going concern) in Thomas Cookā€™s accounts in May 2019ā€¦

Iā€™m not saying Monzo will go the same way as Thomas Cook, of course, but worth considering the reasons documented, rather than which firm is setting them out.

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They are, as others have pointed out, but the statements here mean that there isnā€™t sufficient evidence to conclude that they are with reasonable assurance.

The Twitter thread from the ex auditor below is is Quite useful on the generic ideas of going concern. Iā€™m not sure the thread from the Fintech consultant is as useful in technical audit/accounting terms.

Of course it is all a personal judgement call, but personally I take this as a sensible warning from management and the auditor. There is enough detail here to enable us all to make those judgements.

Iā€™d encourage people to read the detail in the annual report and not rely on hope or press comment.

I love Monzo and theyā€™re my main bank and have been for ages. I have moved a chunk of my savings out though, as a precaution. It will likely come back once the risk reduces again. Donā€™t want to end up with hassle - Iā€™m aware itā€™s protected by FSCS etcā€¦

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Seriously.

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All level 3ā€™s can

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tbf in all the the thread name madness, i think the titles better as a question

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35

I too have monzo plus, and use it as main account.

No, unlike you I am not concerned at all.

Monzo has more deposits with Bank of England and UK government treasuries to cover all balances in the current accounts.

If monzo were to start shutting down, administrators will be called in and things will most likely continue operating as normal. Thus you would be able to continue using your account as normal, you would not notice a thing. If they were to wind down you would be able to use a current account switch to move to a different bank. Or for example some other bank might buy them out and carry on as normal. Thus there will not be a panic or urgent need to move money.

Iā€™ve been through Santander Abbey takeover, Lloyds TSB split, Virgin Money Vs Clydesdale takeover, MBNA takeover, Coventry building society stopping current accountsā€¦ And it all went fine / seamless.

The funds will not be stuck, and will be easily accessible.

Monzoā€™s most recent annual accounts show that everything is good, and they are good to operate for the next year. That is normal and as per uk law and regulations.

The accounts do show that monzo is not yet profitable, meaning they need more users to sign up for Monzo Plus. If you are happy with Monzo Plus, do tell your friends to sign up too!

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36

I wonder quite why anyone other than the OP and the moderators should be able to edit a topic title.

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37

Monzo has a loyal customer base, and (I suspect) one that will weather the current financial storm at least a little better than average.

I would say the risk is not that you end up needing a new bank and a claim with the FSCS but that Monzo ends up getting owned by Amazon, Google or (worst case scenario hereā€¦) an old world bank.

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Wouldnā€™t even need to change where it is hosted!

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39

Rename Monzo Plus to Monzo Prime?

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Theyā€™re FSCS regulated, which means if Monzo went out of business, youā€™d get your money back (up to a limit of Ā£85k) within a week.

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3 posts were merged into an existing topic: Monzo closed my account and will not give my money!

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I wouldnā€™t worry, every bank is facing the same thing at the moment.

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