Phone, travel and breakdown is extremely useful to have. Nationwides is the best and if Monzo can best that then it’d be great.
I think the pick and mix aspect has to be the winner.
What % of the uk population dont have a car?
What % are single/ dont need family cover?
What % need winter sports cover?
I think it would be silly to launch a product that then only tailors it to the leftover percentage?
It does seem like a pick and mix would be a great Monzo-style differentiator. There would presumably be some limits to the combination, but given the control Monzo has over its tech, it could build a great interface to building a custom bundle.
Pick and mix means it becomes more expensive. Barclays Features Store is a prime example of this, if you add the Tech Pack and Travel Packs together it becomes quite expensive.
I guess there could be some sort of bundle discount where Monzo take money off the total price if you buy more options.
I definitely agree here - I can see the absolute benefits the Nationwide Packaged account gives you - but I would genuinely pay a little more to have exactly what I want (as I don’t have a family so it covering family doesn’t bother me for example).
Also if I don’t need/want breakdown cover - why would I buy into a package account that offers me this - I just think a pick n mix no matter if it is slightly more expensive allows users to be more invested in their package!
Barclays do a “multi-pack discount”, where each additional pack comes with a £2 discount.
Barclays packs for reference: https://www.barclays.co.uk/current-accounts/customise-my-account/
Yet they’re significantly more expensive than the competition. Each they’re 12.50. And you’d be paying one of them at 12.50 one at 10.50 if you have two.
I guess it depends on what people think Monzo “packs” should look like, but you’re right that these are much more expensive than Nationwide, for example.
The number of conversations I’ve had with people just by ‘flashing the monzo’ is amazing. Turns out strangers can talk to each other
I think features tailored to different types of people (like Themed accounts) would be a grear idea like Students gadget insurance, discounts etc, then lets say a traveller for example having travel insurance, airport longue access, more allowance for free withdrawals, payment protection insurance, emergency cash. Just a thought maybe a focus group to work on themes
Random person: Ooohhh, you’ve got a brightly coloured bank card!
Me: **** off and leave me alone. I don’t even know you.
Is that how these conversations go!? Cos this is how I imagine them🤣
So you’d pay MORE for LESS.
You’re the perfect consumer
I was comparing having the possibility of a pick n mix as compared to a standardised package - it’s not exactly more for less
I get it. Rationally it might not make sense but humans aren’t rational actors. I’d suggest there’s definitely potential here for what I shall coin a “tailoring-premium”.
Option A - the perfect 100% fit gadget and travel insurance for £15
Option B - gadget and travel insurance that meets 99% of my requirement. plus family cover (i dont have a family), plus breakdown cover (i dont have a car) + a metal card (i like my plastic one) - £10
I’d choose option A. With option B i feel like (completly irrationally but coming from my brain nonetheless) i’m carry excess baggage around with me.
We’ve been taking a fairly either/or approach to pick & mix vrs bundle. An option is to offer both and price them cost-plus margin. Customers can choose to buy bundle or customise (customising will probably be more epensive but some people will pay for that). Some won’t buy either. It could be a case of, “we wanted to offer our customers added benefits via the plus account” “to do so quickly we have provided some great bundled options” “these bundled options will be improved and iterated over time and will likely fall in price as we can negotiate larger bulk discounts” “additionally, we will shortly release pick & mix customisable options using aggregated anonomised data analysis to inform the offering” (call it AI/ML if you want, everyone else does).
Get yourself out in shoreditch tomorrow eve and give it a whirl. You’ll be pleasently surprised
It doesn’t have to be a massive money spinner. If it breaks even in the short term then revenue is good revenue. Costs reduce in the longer term and the offering develops and then it becomes profitable. There are other benefits here too such as some people saying they won’t go full monzo until they have a simular package to other banks, for example.
24 posts were merged into an existing topic: Monzo: investment, profit, VCs and crowdfunding
Thanks for backing me here - I’m basically trying to say that being able to choose what you want is in and of itself a “service”.
This might be a poor analogy but you pay more for food in a restaurant than you would if you had bought the produce and cooked it yourself, why? Because it is being cooked for you that’s what I think of a pick n mix account - Monzo are doing some of the work for you and also giving you free reign to choose what you want, hence a slightly higher price point.