I’ve split out those comments about somebody - definitely not Starling obvs - to a new topic:
1 Like
Why US neobanks thrived while Europeans lost steam
https://www.ft.com/content/c89a26de-ab51-4d1a-87f9-a1f512b7a6ae
The article blames low interchange fees in Europe; says EU fintechs are forced to look at other revenue streams (like lending) whereas US counterparts can get by with interchange income alone
4 Likes
3 Likes
This is my concern about JP Morgan launching here; though I assume they will have accounted for far lower fees.
2 Likes
11 posts were split to a new topic: We can now automatically update your card details with online shops
A post was merged into an existing topic: We can now automatically update your card details with online shops
I would have thought they would do their homework before entering the market.
I present you, N26.
7 Likes
1 Like
America is the one, remember Tom saying they were be a very profitable business if they had the UK customer base and it’s spending habits in the US, purely on interchange.
6 Likes
Interesting stats in this article about revenue and plus
2 Likes
Over 100,000 customers now pay for either Monzo Plus or Premium accounts and the bank has signed up 70,000 business customers. Weekly revenues are now 30% above pre-COVID levels.
This all sounds very positive indeed.
8 Likes
And that’s without interchange fees coming back.
Good point, I’d love to know where the 30% increase has come from. As I’d be surprised if plus has been able to make up for the impact of very little interchange fees
2 Likes
All good, there’s a reason the investors seem to be willing to put more money in
1 Like
Plus, Premium and business accounts, I think.
Remember that cards are still being used, perhaps not in the volume that they used to be. But that’s for the domestic interchange which is really small (therefore probably a marginal revenue contributor). It is the overseas revenue that Monzo is particularly missing, I imagine.
1 Like
Have monzo ever said what the revenue split is between domestic and overseas interchange (either pre or during Pandemic)?
I don’t recall an explicit statement, but when the pandemic first hit they strongly implied that interchange fees in the USA particularly were a very important revenue stream that had been cut to almost zero by lack of travel.
1 Like