I think I have a solution for a better version of Monzo Plus. Currently, Monzo wants to break even for each customer, then offer the Marketplace as a way to bring better functionality to customers, and collect commission for referrals to make a profit.
For example, 1.4% interest on a pot for the customer, then Monzo get’s 0.1%. Whereas going direct to the provider gets you the full 1.5%. Therefor, Monzo customers sacrifice the full benefit in exchange for the convenience of doing everything through Monzo.
Monzo also has limitations on certain features, like ATM withdrawals, bank transfers etc to keep costs down.
I say, replace some of the cost savings (like a £400 ATM limit instead of £200), and all of the commission with the Monzo Plus subscription. That way, Monzo make money EITHER through commission, or subscription fees.
This has a few benefits
- It simplifies the whole thing. Monzo customers get great benefits. Monzo Plus customers get slightly better perks, and more relaxed allowances.
- It doesn’t hide perks behind a pay wall, everyone gets access to everything. Just those customers who really use Monzo for everything (genuine “Plus” customers), have a way of making the most of the Monzo Marketplace.
- It gives Plus customers no reason to go direct to the source for better interest rates or insurance quotes. The more Plus customers, the more things are done through Monzo, the more power Monzo has to renegotiate with these providers. Everyone wins!
What does everyone thing? Should Monzo make “Plus” an easy to understand benefit for customers who do genuinely use Monzo for everything?
Better rates, better allowances, lower costs for add-ons. Easy