Hello, I’d like to talk about the future Monzo a little bit haha ! First of all, I didn’t get if Monzo is gonna have a branch or branches around ? In the future of course … ?
fairly sure they have no plans for branches
There definitely won’t be Monzo branches -
This is one of the most important elements of the Monzo business model, Monzo needs to have low overheads in order for revenue from the overdrafts to cover it’s costs & earn enough revenue to keep the investors happy.
So you want to say that everything is gonna be online by website and app no ? And just a big main centre for monzo staff where everything is controlled so ?
I see, now I got it !
So when Monzo is gonna be a real bank, people who will open a account, how is gonna work to proof the address etc ? I mean, I agree that the thing for proofing your address with many papers and non valid documents etc could be soooo annoying!!
I’m not sure that the process has been finalised yet.
Andy hinted at some of the verification which is being developed but I’ve checked all of the Monzo team’s mentions of address & I can’t find any extra details…
Tom had a great (or not so great) horror story about having to verify his identity when applying for a mortgage recently (5 minutes into the below video) so you can be sure that Monzo hates the idea of physical proof of anything!
Branches mean large overhead costs. Think high street retailers vs. Amazon. More than 600 bank branches have closed across Britain over the past year and about 3,000 over the last decade, leaving around 8,000 now.
Here’s an extract from a PwC white paper entitled Retail Banking 2020 – Evolution or Revolution:
Every bank will be a direct bank; branch banking will be undergoing a significant transformation. As technology enables every aspect of banking to go online, and as cash usage falls away, traditional branches are no longer necessary. Given their high-fixed cost, branches will need to become dramatically more productive, or significantly less costly. Banks have already reduced staff levels, closed the most uneconomic branches and started experimenting with new branch concepts.
We expect these trends to accelerate, as customer expectations and behaviours evolve. Branches will remain, but take many forms, from flagship information, advisory and engagement hubs (offering education, financial advice, full-service capabilities and community offerings) to smart kiosks (offering service, sales, cash and video contact with a range of specialists). Leaders will rapidly improve their footprints, reducing branch size and costs, introducing new models and migrating transactions to low-touch digital channels. Digital capabilities will improve, so that branch service officers and bank customers use the same platforms, with the same look and feel. The human touch will always be available, just much more through digital channels. Banks that are behind this trend will start to struggle, due to structurally uncompetitive economics.
“The human touch will always be available, just much more through digital channels” is a key point to consider. If cash transactions are falling away, face to face video support becomes available and identity verification / identity document verification is automated, are branches really necessary?
There might be a clue here:
Btw, I meant to post this last week about customer support through video: