Mortgage and Building Society Integration


(Peter G) #1

So I was going to post this under the Marketplace Feedback thread, but thinking about it, it seemed slightly broader*, so here we go:

I currently have an offset mortgage with a building society. This means that I have two accounts with them: one mortgage and one savings - and that the value of the savings account is deducted from the outstanding mortgage balance for the purposes of interest calculation.

Now, building societies (with maybe the exception of Nationwide) aren’t particularly up there with digital (or even online banking), and - had the rate not been extremely competitive - I would have likely gone with a provider with a better online/mobile service. Thinking about this over a coffee and croissant :coffee: :croissant: led me to think that there are two areas where :mondo: Monzo could really help:

  1. Including mortgages in the marketplace (duh!) but to integrate applications through Monzo’s own processes / identity checks etc so that there’s a smooth end-to-end experience

  2. Showing the mortgage and any associated savings accounts (like my offset) in the Monzo app. Either via OpenBanking or other deep integration, let Monzo :mondo: become the front-end for those building societies that don’t have the will, skill or inclination to produce their own app. (I say ‘deep integration’ as it’d be amazing to service the accounts properly, not just read only, through the app). This would be great even if you haven’t opened the mortgage through Monzo**

This then brought me on to thinking about the marketplace in general. Could you perhaps invert the model, so that if I apply for a new mortgage directly with the building society (or indeed a broker) then I have the option for to open a Monzo :monzo: current account? Given in recent years both Coventry and Norwich and Peterborough have pulled out of this market, and are struggling with digital, this might be an interesting attack vector to establish Monzo as a banking platform (rather than an app for one current account), reducing cost for complementary service providers by effectively letting them outsource the platform to you (without doing something daft like licensing your technology :wink:)

Thoughts? Is this the direction that Monzo should be heading in? Would anyone other than me find this useful / where the future’s headed?

*Though do merge it, mods, if I’ve been overexcited at the idea of creating a thread!

**I have a personal interest in this as my mortgage provider is horrible to deal with online. I mean, shockingly bad. And if I could integrate magic pots with my offset and manage it from the one app, I’d be over the moon… :top::crescent_moon: :grinning::wink:


Emma Feedback Thread / Q&A
Testing Marketplace Beta
#2

Great ideas.


(Eve) #3

I don’t have any experience with mortgages, but I think it would be really nice to be able to integrate pots with the marketplace and pay out per month from specific pots eg mortgage, bills. :slight_smile:


(Gizmo) #4

I am actually doing some research on how Building Societies and Monzo could interact for my Masters Degree. Using the 150 years experience of a Building Society with the technology of Monzo as an example. As pointed out at the start of this thread despite willingness building societies appear to struggle in the technology area. Further thoughts would be interesting.


#5

The sizes of building society vary from very big to quite tiny. It is probable the technical issues they face will vary with size.

The larger societies have often gone thru expansion via mergers and takeovers so are stuck with legacy systems from the past organization rather than new systems, many of them dating back to the days of passbooks rather than bank cards.

The smaller organizations may have systems that can not scale with a rapid increase in membership, and do not have the same IT budgets as the bigger societies.


(Peter G) #6

Agreed. Which in itself presents the opportunity.

Find providers that can offer complementary services, position Monzo more as a platform and try to increase value for provider and customer alike, rather than competing where it’s not necessary.

(I was about to spout something that had that “win-win” cliche in it, but stopped myself just in time :wink:)


#7

you could offer mortgages thru the marketplace and offer white label accounts with the building society’s branding on


(Peter G) #8

I’m not even sure about the white labelling. Have the account(s) hooked in, with it very clear who’s providing it, then away you go.

(I just worry a bit that branding will get in the way of the platform play, or encourage bad outcomes like multiple instances of the app, but that’s just me :wink:)


(Peter G) #9

Fascinating. It’d be great to hear a bit more about the angle you’re taking and what your results are. :+1: