So I was looking at Coconut (formerly known as Monizo) earlier. And it struck me that the product seems excellent and - in a hypothetical world where they have more cash - Monzo could do worse than a sneaky acquisition to super-charge their business accounts.
Then I looked into the Coconut business model: they seem to be pivoting away from providing their own current account into be a value-add layer on top of banks (including Monzo). So you have your business current account, but Coconut does categorisation, taxation and accountancy stuff over the top.
That left me wondering: if Monzo did acquire Coconut, would they maintain the over-the-top layer? So you’d be able to have use the Monzo app (for a monthly fee) without having a Monzo business account.
Then that led me into thinking about a thought experiment for the personal current account: imagine Plus with native Monzo features (bill splitting, open banking, notes, categories, budgeting - even pots) on top on a legacy current account (First Direct, say). Basically, connect your current account, use that card and get the features of Monzo for a monthly fee.
Part of me thinks this is complicated and dilutes the proposition. Part of me thinks it’s genius and would help with customer support, significantly increase revenues, reduce costs and act as a funnel for a proper Monzo account.
What do y’all think?