In short (which ran through my mind before reading):
“Outside of the current account, there hasn’t really been any other game-changing propositions [from neobanks]”
“…and tend to rely on the legacy institutions for big life transactions such as buying a home.”
Surprised by this though:
“Its customers move about £2,000 to their Revolut account every month, Le Nel says. The company estimates that more than a third of its customers use Revolut as their primary bank account for day-to-day payments.”
Also, pretty sure Jonas once said BizOps would be fit for billions of people:
“Merry considers it unlikely that a large bank would acquire a fintech, even though their valuations have moderated. A purchaser would have to put in heavy investment, and the operational risks of adapting tech platforms designed for a smaller pool of customers and business lines to a wider product range and many more clients would be significant, he says.”
Yeah article was pretty drawn out. I’d like to think Monzo was a little better for salary payments, what with the whole day early thing. Does highlight the importance though of trying to get people to switch to full Monzo. Maybe they could start incentivising this, rather than new customers.
Its point clearly isn’t crap though. A lot of people who have neobanks don’t fully use them for big amounts of money and big transactions. That is undeniable.
And there’s like a post every week on the subreddit with someone worried about putting 10K or more in their account
My brother wouldn’t use his Starling account for his flat sale either, he opened a brand new Barclays account that of course got frozen for a few days when the first deposit was 5 figures
The sorts of customers who need to be paid a day early and need that feature are likely not prime customers to sell other high margin products to (well payday loans maybe).
It’s flawed though right? It’s only one day early for the first time… I’m self employed but everywhere I worked full time I could just ask them to change the date I was paid
I transfer £2k in and back out of Lloyds every month to qualify for their Club account. I rarely use the account for anything else, but I appreciate the magazine subscription I get.
I use NatWest purely because I have a mortgage with them (& credit card) but only have 2 direct debits set up there to qualify. I never spend on the card, and I pay my mortgage payment from Monzo.
The days of having a single account for everything are gone.
I think if you step outside our relatively niche circle, that trend doesn’t really hold.
There are lots of folks out there who only have one bank account, and that bank account is sometimes a Monzo account. Not counting my youngest sibling’s uni friends, I know 3 whose only bank account is with Monzo.
Not necessarily. I use Monzo as my only and main account. (Joint account and flex also).
The pay early feature is great for me because I would get paid every 4 weeks on the Monday. But pay early give me my salary on the Friday (2/3days before) . This isn’t about needing the money for me it’s more about pre planning my bills and separating to other accounts etc. It’s also very useful on some months where I wouldn’t get paid until the following month but get two salary’s in one month.
