Monzo in the media


#43

I mean, it’s an angled approach, sure.

But I’m not sure it’s specifically inaccurate?

People on this forum will see it as misleading (and as followers of Monzo, looking at everything that has been and gone, you can understand why).

But I don’t see any out and out inaccuracies there.

Not saying I think it’s a brilliant piece (the standard of journalism in general is at an all time low).

But it is what it is.


(Is Santa here yet?) #44

I also don’t like the assumption that people are sleepwalking into this without a clue what they’re doing. The information is all there and lots of questions were answered. All potential investors are grown ups and capable of making informed decisions


(Nick) #45

“Monzo lends customers money to buy its shares”

@BenC has done a good job of explaining what’s wrong with that. It’s making a link that is not present and never has been.

Monzo extends an overdraft to customers who have applied for one and passed the tests.

Monzo have not and would not extend an overdraft or offer a loan specifically to buy shares. What customers do with their money is their business.


#46

Well, sure - As it hasn’t actually started yet, that’s not true right now.

But the point is (as far as I can tell), Monzo will be lending money to people so they can buy shares.

Not specifically for that purpose, but as a by product of the fact that Monzo are a bank, that offered overdrafts, and are crowdfunding through their own app.

All you need to do is look through the crowdfunding thread to see people who are likely going to use an overdraft to fund the purchase of Monzo shares.

If by some miracle, no one uses an overdraft to buy their shares, I’m sure the Monzo media team will be all over this asking for it to be recinded (and rightly so).


#47

I couldn’t agree more. :slightly_smiling_face:


#48

Don’t disagree. But the article is giving the impression of a grey area, and that’s what I think people will pick up on.

I think the more effective counter argument (than there’s nothing stopping people using their overdraft to buy shares in general) is there’s nothing stopping customers of other banks using their overdrafts to buy shares in that bank.


#49

It’s basically concern trolling over an issue that is a result of the function of a bank. 🤷

But yeah I agree it’s technically accurate just apparently worded for sensationalism for whatever reason. Or, at least, can be easily misinterpreted as such.


#50

UK journalism in a nutshell :joy:

A better question/debate should simply be…

Should a bank allow the use of overdrafts to fund the purchase of shares in said bank?

Talk all you want about adults making informed decisions, but a quick look at the crowdfunding thread shows that there are a lot of people who aren’t experienced, don’t fully understand the risks and could potentially be caught up in all the hype of the forum.

The gambling block is there to protect vulnerable people, and there are undoubtedly vulnerable people who could get into financial trouble having seen the various valuations and potential share prices being thrown around, thinking it’s a get rich quick scheme.

Personally, I’m generally in the camp of “let them make their own mistakes”, but that applies to the general public, and not those who are vulnerable in any way shape or form.


(Nick) #51

As already stated, Monzo won’t be doing this. At all. At any point. “Monzo will lend money to people, some of whom may use the money to buy shares” is in no way the same as “Monzo will be lending money to people so they can buy shares.” The relationships between the two parts are entirely different.

Yes, and you’ll also see plenty of people saying it’s a bad idea.

Look, I might use my Monzo overdraft (n.b. I don’t have an overdraft) to buy drugs (I don’t buy drugs). Does that mean the Times could run an article on how Monzo lends their customers money to buy drugs?

Don’t forget also the only person quoted is quoted as saying that using an overdraft to buy shares is a bad idea. But he doesn’t mention Monzo. But the write of the article uses the quote to attack Monzo. This is an inaccurate representation of the quote.

Honestly, the Times article could’ve just been “Monzo will be launching a new crowdfunding round. Some customers have said they will use their overdraft to purchase shares. This is a terrible idea and other customers have already said so. Perhaps Monzo themselves could do more to push back against this, even though they aren’t doing anything wrong in themselves.” That would be more accurate, and fair. And I guess less likely to get clicks.


#52

At the risk of going around in circles, I personally didn’t initially read it as Monzo specifically were allocating funds to people in order to buy shares.

I read it as simply the fact that customers were being allowed to use their overdrafts if they wished (which falls into the whole “business/loans/shares” issue the article describes.

Every article out there is an angle on something. Sadly, fair and unbiased reporting is pretty rare these days!


(Simon B) #54

We can’t dictate what people do or do not spend their money on, overdraft or no overdraft.

Our in-app flow for investing means you have to answer questions that ensure you understand the risk of investing, and you are required to read the investment prospectus first.


#55

But you do dictate remember you have a gambling block which can only be disabled after going through to customer service and nowadays customer service is hard to get to. So IMO, in this case, Manzo is dictating.

We can disagree with the article but it highlights an important issue and I think it’s because Monzo had to accept some restrictions and crowdfunding is only being done via their own App. This can seem irresponsible but as previously highlighted if this crowdfunding was at Crowdcube nothing would have stopped someone using their OD.


(Frank) #56

What is interesting is that currently you cannot use your overdraft at your leisure. It does not allowe you to send money to another person, a joint account, or a pot if you are in the overdraft. So it does seem strange that you can use it to buy shares when you are restricted in many other ways.

If you could use the overdraft at will for any purpose then I would disagree with the article as just headline grabbing. But given existing restrictions it does seem strange (I would guess it is because the payment is a card transaction and these are allowed to use the overdraft. :man_shrugging:t2:


(Jack) #57

Tom was on BBC Breakfast this morning.


#58

This is excellent! Monzo are literally national news and it’s happening more and more often.

What’s that quote? something about “no such thing as bad publicity”?

No one is going to remember this rubbish news article in the future but many have now been introduced to this new bank called Monzo … all thanks to free advertising from the Times.

Cheers!


(Andy) #59

16 posts were split to a new topic: Crowdfunding - Investment or Gambling?

I’ve split chat off to a new thread to allow discussions to continue there


(Andy) #60

2 posts were merged into an existing topic: Crowdfunding - Investment or Gambling?


(tom) #61

Here’s the headline in the print version:

The article felt deliberately misleading and sensational. We have a blog post going out about this very shortly.


#62

Perhaps I’m just numb to the UK media these days, but I tend to ignore headlines (although I appreciate that’s probably where a lot of people stop reading, so I can see how it may look misleading).

I’ll be interested to read the blog, as I can’t remember many times a bank has been in this situation (enter someone with an article pointing out when it’s been done before…).

Either way, I’ll try not to use too much of my overdraft when investing! :smiley:


(Matt Richardson) #63

The Times are very critical in what Monzo are doing in regards to the Crowdfunding. Basically saying that you can go into an overdraft to invest, with no way of paying the overdraft off. (Paywall)

Would love to hear people’s thoughts on this.