My view is, that whatever offering they do come up with, it has to compete on these fronts;
Better cost than legacy banks
More convenient to use.
Or offers a package of a much greater ‘quality’ (i.e. the coverage it gives is market leading).
To win, it feels like they need to do something to hit two of those points. I’d be happy to pay more if the offering is that much better. If convenience is the Key selling point, I’m happy with a cheaper but typical offering… etc.
It seems like V1 and V2 of Monzo Plus did none of those things well. I hope they find the right ‘spot’
I believe all they need to do to make it a success, it to make it easy to signup and offer some basic perks like Metal Cards or merchandise. They can also offer travel insurance, as this seems to be a standard thing, offer some cashback/Monzo Points and maybe breakdown cover.
While it would be awesome if they could offer other insurance at a competitive price, it is always going to be hard to offer things like home insurance, car insurance or pet insurance as those are things tailored to a user.
While the price for this should be reasonable, I don’t think it has to be the cheapest on the market for it to work.
I think they can offer a strong option on 2 points if not all.
If they can’t achieve a ‘better price’ (or at least price equivalent) of main banks, they at least need to have a set of things in their package that is more desirable than other banks.
If they end up with a sub-optimal price point, and a sub-optimal package - what’s left?
If someone is using Monzo as their main bank account they are most likely going to go with Monzo Plus offering if they are looking for a packaged bank account.
While there are most likely people who move to a specific bank because of the packaged bank account they offer, not everyone does that. Sometimes people just want to manage everything from one place so they don’t have to have multiple accounts, logins, contracts, etc.
Some people can’t get packaged accounts with other banks as you need to upgrade your account and pass a credit check/have good credit and if someone is with Monzo as a full account then they will likely buy into Plus as they can’t get packaged account elsewhere
I agree with those regarding the potential paywall here. Nothing currently available to standard users should be taken away to be hidden behind a paywall. That’s just a money grab move. I’ve filled my survey in though, and looking forward to the future development of the new Monzo Plus.
To better explain myself, Monzo needs to achieve economics of scale in order to be profitable. If they make a paid product which has broad appeal to millions of users then the economics of scale help them keep costs down and compete on price as you can be profitable with small margin per paying user if there’s millions of those paying.
But if they make a product which only appeals to a small minority of hardcore Monzo fans then not enough people will sign up for it so they won’t be able to offer good competitive pricing while still making profit.
Hi everyone! I was hoping to post our weekly update today, but I haven’t been feeling well
I should have it ready for everyone tomorrow. Have a lovely evening. If you’re in London this evening, take an umbrella but also wear shorts. It’s one of those days.
Just to echo what @tbutz said. I may have been quite critical recently but I can certainly wait a few more days until you’re back to 100% health. Get well soon
Great update and happy the team are starting again.
I’ve filled in the survey but also positive that all options are on the table at this stage.
I’m happy to pay for a subscription if they end product is exciting/rewarding. Some people will always want that for free, that will always be a tension.
