I look forward to this.
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This sounds great, but you need to consider a way to make this simple for users to understand. If a user goes to create a savings account and is presented with a list with many options I think this is going to overwhelm/confuse a lot of people who haven’t got into savings before.
So I hope the presentation can be done in a way that clearly explains the different options available and allows people with less experience to easily make an informed decision.
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Yep with my previous bank, with the account I had I only seemed to have access/be eligible for savings accounts with 0.2% interest!
I think the Monzo model on this with the market place will be much better. Really looking forward to seeing the options expand 
As lovely as it would be to have a marcus pot in monzo personally im never going to be willing to give up a percentage to do so.
Monzo should be taking a finders fee from the other bank not from its customer in my eyes.
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It would likely always be passed onto the consumer in one way or another
Being upfront about it is better
They said there fee was 0.2%
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In this recent example, Monzo are taking the fee from the provider - Not the customer.
Whether the provider drops their rate by 0.2% is anyone’s guess (could be more, could be less).
Monzo arn’t taking anything from the customer in my view (technicalities aside). They are simply saying to the bank, offer whatever you like to the customer, however we would also like 0.2% regardless. They are not saying ‘can you offer our customers 1.5% please? We will then take 0.2% of that and offer the customer 1.3% (evil laugh)’.
There is a chance someone like Marcus could come along, and go
‘Look, there is a large market of 2 million people here that could dump money into our investment fund very easily without thinking about it and we wouldn’t have to do any advertising or leg work, let’s offer them 1.6% and also pay Monzo the 0.2%’.
That offer wouldn’t be available direct, and Monzo are now providing users with the option to get the best interest around. Would you then use it?
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Just my opinion, but I feel if anything, it would be “Let’s go halves on the 0.2% with the customer, and offer them 1.4%”
Although my gut feeling is most providers will simply give Monzo customers a rate that is 0.2% worse than going direct to them…
Importantly, you get the rate you’re shown. Our cut comes separately and we tell you what that is. I think that’s about as fair and transparent as we can get.
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I like the idea of this marketplace very much. I think I’d be willing not to have the best rates on the market if it means I can easily access my savings all in one place. If it’s at least close to the current high street banks I’m on board
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Oh yeah for sure, I’m not saying it’ll definitely happen, I’m just saying its an option with this style of offering, as they’re basically giving millions of potential customers to these banks with none of the hard work of support or sorting their identity or anything like that. Seems like a win win to me.
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I think that’s fair, but the big difference (in my eyes), is that this time you (Monzo) are saying that “Hey, we are charging the provider 2%, and then can offer whatever they want”.
Where as before, it always felt like Monzo had simply adopted a rate from the main provider, and took a finders fee (which was explained, but felt more like a fee on the customer, than the bank).
This wording at least, sounds better in my eyes 
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That’s totally fair.
In the case of Investec, I think they provide a good rate through Monzo compared to directly. For their individual easy access accounts, you’d have to save more than £10,000 to get more than 0.10% annual AER. (I realise this is a fairly extreme example.)
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I am sure that there is a cap on how much you can save per month. Usually with the 5% savers it is £250, use it or lose out (monthly allocation). This is acceptable for some, not for others. You also need to use the FD app, which breaks me!
I am excited to see what Monzo can offer. 1.5% no cap seems to be the offering to beat. Hopefully the marketplace can bring solutions to fit most needs.
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Investec were a funny one to work out, because there was no direct comparison.
From memory, Monzo/Investec offered a 1% rate and charged 0.15%, and Investec directly (at the time) had a 1.15% offering, with a minimum deposit of something like £20,000
My assumption (although I was probably waaaaaay off), was that Monzo were somehow working with that product - If nothing else, because the maths made sense 
Could have been a big coincidence though!
Guys come on dont jump on me on a technicality.
I agree monzo are being upfront and i value that immensely, and yes theyre entitled to their share for providing a service that wasnt previously there.
What i dont like to see and what my point was getting at is the northbrook offer the same 1.5% interest rate as they would direct and then monzo say we will take .2% off that leaving the customer with 1.3%
If the arrangements are more like this in the marketplace it seems to more be like monzo saying we will take a bit of the customers interest cut as opposed to the holding bank making any adjustments on their side or at least thats how it looks/feels to me.
My expectation, as I’ve already said, is that Monzo’s rates are 0.2% worse than going direct - I just don’t see providers losing out just to work with Monzo (although I may be proved wrong).
But the fact that these providers can offer any rate they wish, and that Monzo will take 0.2% regardless… I see this as an opportunity for the provider to think outside the box and maybe surprise us all
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Very true. A distinction to make is that, at least right now, we’re not bringing existing savings products directly into our savings marketplace, we’re instead making unique deals directly.
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It is an important distinction though - Monzo have openly said what their fee is - the guys who come to the marketplace then decide whether to scalp that off or not.
My only argument to this is that it is a different product (at least with the ISAs) - its flexible and it has a lower entry point - not things to sniff at!
I think you’re right, but that is only because there is 1 provider - I think once that opens up you’ll see a lot more competition from between the providers where it won’t feel like the 0.2% is scalped off the customer.
See this is where Tom’s group bargaining power should come in like hes mentioned a few times. Look at Oaknorth, how many monzo customers were aware of or would have opened up an account with Oaknorth if not for the integration? Same with Investec?
This is the angle that should be played I personally feel. 1.8 mill potential new customers (i know wont be that many) should be flaunted a bit more to get better rates.
Like you say though, all speculation until some actual announcements are made 
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