I’d much rather they actually created a competitive consumer friendly bank account than put time into being a price comparison app.
So you think they should completely change their business model suddenly?
I didn’t say that. However, when the actual core basic element of a bank account isn’t the best it can be - I don’t see the logic in wasting time on trying to get people to switch energy suppliers.
Which core elements do you think need improving and how? So far I’ve seen you say plenty that is wrong but nothing actually constructive, so I’m interested in what you’d like to see them improve
Also with their hub and spoke idea both elements are equally important
1- £3 a month for merch and a different card colour - Cash Grab and it’s ripping off customers.
2- £1 to deposit your own money - Shambolic when you look at how it’s panned out. Ridiculously low limit, with nearly every other bank out there offering free deposits at the post office. PayPoint is a ridiculous excuse for a company, and I certainly don’t feel comfortable going to a newsagents to deposit money! It also shouldn’t be up to the customer to explain how it’s done.
3- 50p a day overdraft, which is predatory and hits the poorest and most vulnerable customers the most.
4- Strictness with overdraft with many extremely credit-worthy people getting declined on the basis of ‘conservative lending’ and they then go to Starling and legacy banks and get a high overdraft.
5- Awful Travel Insurance partnership when many people will need it for their partners and families.
Split out of the energy account thread.
Because it’s not talking about energy accounts…
Like to add to your post points 1&5 are irrelevant as they aren’t rolled out to all users so you can’t judge the bank for a non-released feature.
Number 2 is also going to be improved soon, as Monzo are in talks with the Post Office to make cash deposits work better…
Those 2 points are linked. The overdraft isn’t designed to be used frequently so the 50p (which leaves Monzo mid market in terms of cost) isn’t going to be market leading to try and encourage persistent debt.
Apparently it’s conservative but the factors aren’t fully known. I have a high overdraft facility which I presume is down to low credit utilisation elsewhere
Not sure why people don’t feel comfortable adding money at paypoint. It’s not like they have to post it to Monzo, it’s instantly added to your account. The training of the staff is a different point that needs improvement. If people are happy paying £2 at the post office then it’ll be good to give them that choice
It’s not up to Monzo to decide how frequently somebody needs to use an overdraft. Everybody’s circumstances are different, and some will inevitably need an overdraft more than others.
The overdraft fees are predatory, hitting the poorest and most vulnerable the hardest. It’s not ‘transparent’ - It’s money making at its most murkiest.
Irresponsible lending by encouraging customers to use their overdraft frequently is predatory and affects the poorest and most vulnerable customers.
On one hand you’re saying Monzo are targeting the poor and ripping them off and on the other that it’s not up to Monzo to act responsibly. Which one is it?
Except, it kind of is? An overdraft is essentially a loan, and it is up to Monzo to decide if they’re happy to risk loaning that money or not.
I don’t think it could be more transparent.
It’s exactly 50p per day. Everybody seems to be aware. If it was less transparent we’d have a tonne of people asking how much the overdraft is.
Unless your misusing the word transparent?
You would expect them to be a centre for financial products firstly with things like Savings, Loans, Credit Cards etc, before jumping off into other stuff like price comparisons (in hub and spoke method or in house - whichever they pick).
I’d also expect them to have app functionality down, before embarking on stuff like price comparison stuff. Home screen has seen little improvement for ages (hence bin the graph thread), the summary tab is poor (hence threads), the payments tab is weak (spending a third of a space begging for permission for contacts, and pushing me to invite others), we were told pots are the replacement of additional sole accounts but improvements have “been coming” for almost three years. 3DSecure implementation was poor too requiring every transaction checking. It’s on these things they could be more polished.
I really like Monzo but it doesn’t feel focused at times, more clumsy or a bit scatty. I’m unsurprised only around 30% of people use it as a full account (even if it is rising).
For being instantly up to date along with customer service its great. Probably best in the market. But most other stuff is average - its not the best at offering any other financial products, its not a comparison, it’s not competitive on overdrafts, it’s not best for travelling abroad, its not the best place for financial content etc.
Are 70% of people not using it fully because they cant switch energy in the app?
1- Poor for using abroad.
2- Predatory Overdraft Fees.
3- Fees to deposit cash and shambolic management of that.
4- Amateur management of the savings pots.
5- Bad trial of Monzo +
What exactly is market leading here?
In what way is it poor for using abroad? I used it all last week as my sole method of payment in Italy (up a mountain) had zero issues
I didn’t say poor for using abroad, I said not the best - see starling.
I get the impression that Monzo have taken a conscious decision to have a marketplace with lots of external partners, rather than offer these products themselves. I guess that might work, but it’s not up and running yet.
This, this, this. Absolutely this. Well said!
Not everywhere abroad is as card reliant as here. The £200 fee free limit is paltry when you look at Starling and Revolut.
Instant notifications, budgeting tools, visibility of future DDs and BACS payments, transparent fees structure, and probably some other bits. There’s lots to like with monzo (I presume that’s why you’re here?) but, I can agree with you, that monzo still have a lot of work to do before they can claim to be the best current account.