Ah, thanks for that. On reflection, I suppose I was comparing current account activity.
Barclays have had 300 years and their app is still terrible!
I used Starling for a bit after a friend introduced me, maybe used it for a solid month of âincidentalâ use.
What I did like:
- The digital card number you can use from within the app (not sure if thatâs the same as the physical card)
- Interest (albeit very small)
Didnât like:
- Their tone of voice and general interactions with their Customer services. (and Monzo feels more natural)
- The layout of the âhomeâ part of the app - more swiping than needed to get into the detail.
Other bits:
- A lot of it is very comparable, but overall I just liked Monzo better. I would have probably stuck with them if I didnât get customer service snark when I had an issue.
- I do like the Marketplace bit - though I havenât actually used it, the idea seems reasonable.
Thatâs one thing I liked about starling - the ability to use the card/account via ApplePay straight away without needing to wait for a physical card. Also like the potential of the market place, looking forward to seeing version soon
I see both Monzo and Starling slowly start to give the industry a good kicking into action.
I regularly compare FinTechâs effects on the banking technology to the effects that GMail had on revolutionising web based email.
Hotmail only offered 2mb of email space, had a terrible interface and generally was unloved and feature wise abandoned for many years; then GMail pops up on the scene. GMail was prettier, offered over 100x the space for free and had a revolutionary AJAX interface allowing drag-and-drop etcâŚ
Within a year both Microsoft with Hotmail and Yahoo! with their Mail had to step up their game to keep customers waiting for a GMail invite. I still to this day use GMail and I personally think neither Hotmail or Yahoo! really ever did catch back up.
42 posts were split to a new topic: Is Monzo requiring acess to contacts for joint account opening / Monzo.me necessary & secure?
The only thing I prefer on my Starling account to my Monzo is the way they display Goals (Pots).
With Starling you can upload your own image and then this fits nicely across the screen with others below it and the current balance within the image. To Add/Withdraw, click the image.
Monzo have the Pot featured as a bank card with some pretty irrelevant images and the Add/Withdraw facilities underneath so, those like me with multiple Pots to make use of the IFTTT integration and updated Schedule Payment option have to keep scrolling. I know itâs only seconds, however, it is still slightly annoying.
That said, thinking of going FullMonzo in next couple of months from my legacy bank.
BTW, I am on Android Beta
2 posts were merged into an existing topic: Is Monzo requiring acess to contacts for joint account opening / Monzo.me necessary & secure?
2 posts were merged into an existing topic: Is Monzo requiring acess to contacts for joint account opening / Monzo.me necessary & secure?
I signed up for a Starling account. Why not? Grass might sometimes be greener elsewhere but youâll never know if you donât check.
I was offered an overdraft of ÂŁ2500. It struck me from the start that it looked rather inexpensive compered to Monzoâs pricing.
I played with the slider in the Starling app for a bit and here is what I got:
Now, I have two words on that. It is time to change the way Monzo calculates their overdraft charges. In the name of simplicity, in my opinion, most users will be heavily overcharged. How many users will actually be overdrawn by ÂŁ1300 to warrant 50p a day charge? My gut feeling is most will be overdrawn by ÂŁ200, ÂŁ300, maybe ÂŁ500 max but will be charged multiple of what they should be paying.
After reading this, I am honestly surprised in most use cases, users would be overdrawn by around ÂŁ1300 so 50p charge simplifies charges for them.
Monzo is doing good things on ethical and transparency issues. But their overdraft charges are just too high and need to be brought down to fair and honest levels.
Youâll be interested in the fulsome discussions that have emerged here on the subject of overdraft. Go browseâŚ
The thing is youâre looking at the cost of an overdraft in purely economic terms. CEO Tom firmly believes the majority of customers are emotional about their finances, not economical.
Take, for example, the evidence that most overdrafts in the UK are already more expensive than Starling, yet there isnât a huge rush by consumers to get their overdraft charges down by switching. Nationwide charges the same 50p per day, and Starlingâs own website shows most high street overdraft borrowing is charged at a higher rate even with additional charges.
Tom believes that the benefit from a fixed charge is that Monzo can, with certainty, tell folk exactly how much they will be charged if they are overdrawn for the rest of the month. It takes away the hidden cost of increased charges if an overdraft is increased, charges which cannot be predicted in advance. Tom is betting that people will respond better to a maximum fee of ÂŁ15.50 per month, so they can completely take charges into account when budgeting. Tom believes the more expensive overdraft in this instance is worth paying for the confidence you wonât be charged any more.
It also means Monzo build in an ethical stance to borrowing: Because Monzo do not earn more in charges by lending you more, there is no financial incentive to keep lending, and itâs easier to work with customers to help them bring borrowing under control, using the complex and advanced budgeting features in the app, rather than just throwing more money at someone who is sinking. There may well be, as a result, less defaulting on borrowing and a higher proportion of lending at the bank is therefore profitable.
Finally, Monzoâs ultimate aim is to become the financial control centre of your life, not actually have âjustâ a nice current account. In the brave new world of Open Banking it may well be possible to run your account through Monzo but buy an overdraft from Starling, via the Marketplace.
I used to be exactly the same, wondering why anyone would use a more expensive form of overdraft. You can find evidence of that on his very forum. Tom and Monzo have changed my opinion, quite simply.
Edit: Youâve used a âgut feelingâ to estimate the average level of borrowing. Elsewhere on this forum I gave evidence that the current average overdraft is in fact ÂŁ1700, so it seems to me Monzo have pitched the tipping point where they become cheaper at just about the right level.
Well, he is the leader after all. Thankfully we are allowed to disagree (and do so) but ultimately itâs his business and itâs up to him to make the decisions that he believes would yield the most profit for the company.
I have no needs for overdrafts other than an exceptional 50-odd quid or so (for which Iâm happy to pay because it would happen once a year and not worth the hassle of opening an account) but if I did need an overdraft regularly Iâd definitely look at the competition like Starling.
I just want an honest answer not flame war.
I think this is the key point, and the main argument for an overdraft structure at a fixed fee which we often (myself included) forget when debating the pricing.
I do consider Monzoâs overdraft expensive, but when Iâm reminded of this, I do understand why itâs done in this way.
Well for me, I read that like once youâre over ÂŁ1300 then youâre safe in the knowledge that it canât get worse so you can borrow a bit more without fear.
Clever way to make money using overdrafts.
I applaud the simplicity from a customer point of view (they know where they stand) and business as a good money spinner.
Well Monzoâs not lending anyone more than ÂŁ1,000 soâŚ
Also, the fee is a flat fee of 50p per day so the good news is that Monzoâs got no incentive to lend users more than they should.
Wouldnât this mean they are always going to be on the expensive side (currently), if the âtipping pointâ is ÂŁ1300?
For what itâs worth, as someone who doesnât use an overdraft, I value the ease of understanding the cost of the Monzo overdraft, despite it being comparatively more expensive than competitors.
However, if you are living in your overdraft, Monzo is not the place to be - So perhaps the focus should be on living outside of it, rather than worrying about the fees.
If you happen to miscalculate, and enter your overdraft for a day or two, youâll know exactly how much that mistake has cost.
I do sometimes feel that people think Monzo are going to be the greatest, cheapest, most transparent company to have ever graced our presence - And whilst they are excellent in some areas, in others (like overdrafts), they might not fit your specific criteria.
Monzo donât claim to be âcheapâ on their overdraft fees, and they have always encouraged customers to get a better understanding of their finances.
In my opinion, a better understanding would lead to less reliance on an overdraft in the first place, and this conversation would be irrelevant