New feature coming 👀

I think the idea would be it could get you using the Monzo app more, since you would get into the habit of opening Monzo rather than your other bank apps, and therefore you would be seeing how good it is - which would make you consider switching your banking to Monzo completely?

Also, I feel it is really meant to give you a better overview of your credit card spending but has been rolled out for current accounts as well, since it requires limited extra technical work to add the feature for all types of Open Banking account?

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This has always been the business plan, though. It’s how Monzo was first envisaged. It’s not looking to replace your bank account. It’s looking to become your financial hub.

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True, it was, but if that was still the case then they would not necessarily need banking licenses, let alone be starting the process of getting a license in the USA. Being able to see money in another account at another bank is not a route to profit, and they have been quite clear that profit is the focus this year. It might well be the basics of what have been built are being able to see other balances, but they have built something on top of this, eg investing money from your HSBC account right into a Monzo savings pot from within the Monzo app.

Just to put a different slant on the idea of profitability and how that might inform Monzo development, I think it’s worth considering the wider context of modern banking. The fact is that Open Banking is gradually becoming adopted throughout the sector, and it will increasingly become an expected feature for users regardless of who they bank with, in the same way that having an app is now expected. There are many banks that have already implemented Open Banking to differing degrees, so it’s as much about keeping up with the competition as it is producing directly profitable features. In the long run, if Monzo starts to lag behind especially in the area of technical innovation (where they might currently be seen as ahead of the crowd) it could seriously harm their brand. I hope they see Open Banking as a chance to take the lead and innovate for the wider benefit of their customers, rather than thinking strictly about how immediately profitable the feature may be.

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Of course it is. The more Monzo knows about your entire financial life, the more money Monzo makes from you. If you use Monzo and, say, Barclays, Monzo wants you to populate its platform with your Barclays data so that it can see how much you’re paying on your mortgage and sell you a cheaper one, or a different energy supplier, or savings account.

It can also target you more specifically with advertising. Some companies even sell your data (anonymised) but checking the privacy policy I can’t explicitly tell if Monzo does that.

The alternative is that Barclays gets your Monzo data, so Monzo wants to build the most desirable app and suite of products and services.

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And that is the point where I would close my account. I’d rather pay for those features, than have my data used to pay for them.

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I know how it works, my own company wouldn’t be profitable without big data :slight_smile: Basically you are talking about Monzo becoming an affiliate platform to sell you stuff. That just annoys people, and like I said, they don’t need to be applying for more banking licenses for that.

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Yes, I hope they don’t go too far down this road.

The financial services should be the Monzo product, not your data.

I hope this is an app feature to help customers get a fuller picture of their finances and nothing more.

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Well Monzo already sells energy switching, and savings accounts with other providers, and its own loans. If Plus rumours are correct, it’ll shortly begin selling insurance provided by other companies, so…

That’s always been the model, and Monzo assessed at the outset that the best way to deliver that was through a licensed current account. Other companies took a different route (for example Revolut chose the FX route, but is now looping back round for a banking licence).

Monzo executives have expressed some regret for going for a banking licence so early on, as they felt it may have detracted from early development, but not so much that they changed the business model.

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Sure, but they don’t need to be selling my data or analysing it for targeted advertising to do that. Right now, it works very much like an App Store marketplace, Where Monzo sells you a product from a third party in turn for taking a cut. They’re not targeted nor done through data analysis. There is a line, Monzo haven’t crossed it yet, and I hope they never do.

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What would be amazing if it is open banking, is if I can make pot-moving-prompts based on the updates to the open banking feed. Ideally in app, something like a reverse bills pot but I’d take IFTTT trigger too.

Balance change detected in my AMEX account.
Move the change from Account Balance to AMEX Bills Pot
AMEX gets paid from it’s Bills Pot when it comes due.

Could be so powerful if they integrate it fully in the ecosystem.

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The scope of Open Banking right now is strictly “payment accounts”, that is to say accounts that you can transact directly in and out of. This means that current accounts and credit cards are in scope, as well as savings accounts (if they have their own sort code/account number and you can move money directly into them or out of them). Mortgages, pensions, and other accounts are not in scope.

However - there is good news, the Financial Conduct Authority (FCA) are running a consultation on “Open Finance” which, if it goes ahead, will extend Open Banking to these accounts and other accounts as well. Monzo has prepared a response to this consultation.

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If I were Monzo’s Head of Community, I’d crowd source a response via this forum, Twitter and other places (maybe polls in the app?) and submit two responses: a corporate Monzo response and a Monzo community one. And I’d publish both publicly.

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In different news: Kieran, hypothetically speaking, how long is it usually between internal sign off of a new feature and release to the app? :thinking: :stuck_out_tongue_winking_eye:

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SooooooooOoooon or soon?

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:soon: :tm:

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I like this idea! It’s a lot of work though. To be honest I think the official Monzo response and the community response would probably say very similar things – we are aligned :sparkles:

Lol - it varies a lot but maybe 1-2 weeks in normal times and maybe a bit longer in the current environment. It depends a lot on the complexity of what’s launching.

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Nice! Any chance that Monzo could publish its response? It’d be great to see!

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I like this. Definitive timescales with a realistic disclaimer due to the current goings-on. But positive. And positive is a good thing right now.

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I hope it’s not with Habito. The entire operation is a shit show.

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