A lot of retail banks offer a switching incentive, would this make you more inclined to switch to monzo or would you switch purely based on technology and service?
And then people switch straight away to another bank to get another incentive. It’s a costly and pointless exercise
Monzo won’t and don’t need to offer any incentive, they have over 600k users and climbing on word alone.
Incentive = Gimmick
This year alone I have made £375 from switching accounts. I have no intention of keeping any of them. Monzo’s ‘incentive’ is the whole package.
Incentive = Artificial growth… Take Ben (and myself included) just switching to banks to get free money without any real attachment to the bank.
@Danny pretty much nailed it here An incentive is lovely, but it’s so short lived, customer should want to join Monzo for Monzo Not because of £100
I thought my post ended quite nicely there… But in addition to that; the goal of Monzo is to help you manage & save money. So in the long run the theory is that you’ll save yourself more than the £100 bonus at the start (in the long run).
As well as all of the above regarding the loyalty of ‘purchased’ customers and the current rate of Monzo growth, knowing what’s been publically shared about the profitability of Monzo Current Accounts at this point, I’d be greatly concerned at the offer of a switching bonus since there’s nowhere for the money to come from to pay for it. Even if they thought they needed to, paying for customers is not an affordable option.