Monzo: investment, profit, VCs and crowdfunding


(Splodf) #62

That’s the point I’m trying to make too.

By introducing a slider like mechanism. It will give clarity on the Apr and enable Monzo to tie in the summary/budget reset periods/next income (and an incentive to actually finish the budgeting tools) and be able to calculate exactly what you’ll accrue in charges.


(Jordan) #63

The FCA guidance actually recommends a ‘calculator-esque’ type feature to be put alongside the new APR % only fees on overdrafts - so hopefully this is taken onboard!


#64

That’s a good idea.
“You are currently, overdrawn by £300, the interest suffered today will be 9p.”
That’s at starlings rate but you get the picture.


(Splodf) #65

It’s not bad really either rate, when you consider if there was no alternative.

Say if you borrowed £300 off a mate for a day and gave it back to them the next with a present. I imagine they’d be fairly unhappy with either of their 9p or 50p presents.


#66

It all adds up. The trouble is the poorest people are living in their overdrafts


(Splodf) #67

Yep, but the alternative could be worse, bills going unpaid, rent unpaid, children not eating.

It’s one of those catch 22 situations, aiding and hindering social and financial mobility.


#68

A 41p a day difference over a year is a fair chunk of gas bill


#69

It’s a weeks wages for those on the lowest incomes


(Splodf) #70

It does. Overdrafts are often a sticking plaster fix.

What would be great is if an overdraft at a good rate could be called upon when needed, then help was available beyond that in whatever form is needed to try and aid/steer the customer away from needing to use them again (if possible!).

Addressing the short and long term issues.


#71

That’s what I’d like to see and I thought that’s what monso was bringing to the table


(Splodf) #72

They’ve got an opportunity to reinvent themselves on overdrafts, let’s judge them on what they come up with.


#73

I think they’ll wait and see what others do first


#74

Why do you care so much?

They need to show signs they can make money. End of. Otherwise, money is gone and so is Monzo.

Monzo Plus is not how they do this.


(Jordan) #75

I was just explaining a point - they’ve got money and are obviously spending it. But there won’t be one product that makes them profitable so diversification is a good thing - although Monzo Plus in its current form isn’t great imo I think it can work