I take it the extra costs are things like KYC and AML and the like, some of which are handed off to third parties?
A few benefits I can think of off the top of my head of pots over multiple bank accounts are:
Better visibility of finances - while multiple current accounts could be shown in app, things like Savings Goals would be much more difficult to implement.
Better integration within a main spending account - allows Monzo to implement things like Round Ups and IFTTT without endangering security by allowing money to be moved between accounts with user authentication.
Fewer card needed - more cards = more chance of confusion, which would (imo) lead to a worse customer experience. Multiple account and card numbers could also cause confusion when setting up recurring payments.
Potential for better recurring payment management - only having to use one account number and only card number when setting up recurring payments (direct debits & recurring card payments (CPAs)) and still having an easily visible, ringfenced place where they are taken (hopefully the suggested Committed Spending Pot).
I don’t understand…Monzo is innovating here, allowing you to manage all your money sensibly in one bank account and people just want to open multiple accounts to manage their money. What’s stopping them from walking into their local town centre and visiting the multiple old fashioned banks and opening an account? (they could even go to each of them if they liked!) You don’t need Monzo to do this…
If I commit to shaping my finances around the ‘pots’ model; a pot for this, a pot for that (all a logical abstraction upon a single regular bank account), what happens when I CASS to another bank?
The fine granularity of my finances disappears and I’m left with a single (new) bank account. How much of this bank account is for me and partner to buy fuel? How was much was for our year-long savings for a holiday?
But if pots were accounts you’d still need to open the equivalent amount of accounts elsewhere. And you’d need to individually CASS each pot to a new account.
Is that a problem? Stuff like “Know Your Customer” is a PITA for Monzo I’m sure, but surely there’s no scarcity of bank accounts that can be made in the UK? Monzo was able to a create a second account, a joint one, very quickly and easily. Why not a third or n’th?
Luckily for me, I still have my original accounts with my old bank, so I can’t misspend money meant for my car on my evening meal out. Nor do I have to shuffle money in/out of pots marked for ‘car’ or ‘entertainment’ in the queue at the Esso garage. If Monzo supported multiple accounts, then account 1, 2 & 3 would be CASS’d across to Monzo-1, Monzo-2 & Monzo-3.
I’m not sure it was quick and easy, and full functionality still isn’t there (like CASS)
I also think this has been innovation for the sake of it. I’ve got a long list of custom-named accounts with bunq and I can see my financial situation at a glance in a way that I just don’t with Monzo.
I can also link the three cards to any of the accounts I want, which is actually the most useful feature, separating boring transfers from actual spending.
On the other hand, I’m not fanatical. Why should this be an either or? Why not allow lots of accounts and pots? I really don’t see why it should cost huge amounts more. Maybe someone could enlighten us on the potential costs.
I think the added complication for the user would be Monzo’s issue here, not the additional cost - similar to why they’re not a fan of custom categories or giving a toggle to loads of features.
^This is all pure speculation though.
I closed all my other accounts when I eventually became #fullmonzo. I no longer see the need for multiple accounts, it’s a lot of maintenance and I hated carrying around loads of cards.
Account does not equal card!
I think account aggregators are probably the way forward anyway. It will be really interesting to see the first third party payment initiator.
The category thing has been rumbling on for ages. Emma should have custom categories soon. Problem solved
Can we push this into the 2019 roadmap contest? Having multiple accounts (i.e. sort/account number on pots) would be amazing and much cleaner than one single account for all the bills!
It doesn’t have to be with multiple cards, it’s just a handy way to split money in different actual accounts.