My impression was that it was more “Our fee is 0.2%, what rate can you offer?”. The net effect is the same but the intention is different. 3 million customers still isn’t that much negoting power and many of those products were set up when the number was quite a lot lower.
I would hope that in the future the products could match and in an ideal world the blub when signing up for the savings products (which I think is already very clear) would also state that the rate was 0.x% less than going direct.
@kolok, seems pretty accurate - apart from the number of customers. I also think they could have mentioned the loyalty many Monzo customers appear to feel, and made more of Monzo’s default to transparency - and the fact they’re adding more customers on a daily basis than other high-street banks. However, a decent article.
Just received an ad from WIRED magazine for one of their events, at which @anon91821566 is scheduled to speak.
They wrote a great article about Monzo a while ago, but none of that research has fed into their event advertising - which is very sloppy, to say the least.
It’s all just the media - they love to focus on very shocking aspects no matter how minute they may be to grab your attention. Working for Revolut might not be as bad as the media makes out.
Not the focus of the article, but the following is the bit I found most interesting:
Part of the problem faced by challenger banks is customers use them as spending cards, putting their salaries into traditional banks but using Monzo et al to track transactions. “If you put your salary into Monzo, or deposit at least £1,000 a month by bank transfer… you are nicely profitable for Monzo – you make about £35 a year in gross profit,” he says. “If you don’t put your salary in, and just use it as a spending card, we lose about £5 a year.”
Annual per-customer contribution margin is now +£4 as at May 2019, up
from -£15 a year ago, and -£65 in 2017. The longer customers are with us,
the more profitable they become, and salaried users contribute +£30 –
mainly driven by the money we make when people use their Monzo cards
So I am inclined to think +£5 by June, up from +£4 in May, especially given an increase of £5 for salaried customers, rather than a massive negative swing to -£5
Though they also said two million customers in the article and one million in a recent email, so could well just be a mistake - that is the simplest explanation
