Switched from Monzo to a legacy bank (Barclays) šŸ’«

You do know the challengerā€™s plans for this, right? I would explain myself but I donā€™t have time right now.

The plan isnā€™t just to give users access to the appā€™s functionality within the challengerā€™s apps is it?

Iā€™m more taken by the notion James raises about the potential for existing high street bank development teams to rapidly respond and narrow the excitement gap.

Ultimately it feels like functionality alone wonā€™t win the day - customer service, the softer stuff, will surely have a greater part to play. Both Monzo and Starling forums put a lot of store in the relationship account holders should have with their respective bank.

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Sure, itā€™s going to take both functionality & a good relationship to satisfy users. I think the challengers have to be strong in both areas.

Itā€™s definitely not impossible for the legacy banks to catch up with what the challengers have now. As Iā€™ve said before, theyā€™ve only delivered the basics.

The question is, can the legacy banks catch up before the challengers innovate more, especially when it comes to the clever stuff that the truly digital challengers will be able to do.

And will they successfully reorientate their business model so that itā€™s service, as opposed to product, orientated.

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And thatā€™s really the point. And even if they can, do they think they need to?

Itā€™ll be fascinating to see quite what the genuine challengers will have delivered and embedded in 18 months or so.

And your latter point about the legacy business model:
Itā€™d be one thing to refocus their developers into innovation - quite another to reorientate the whole approach to customer satisfaction. A big askā€¦

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I think many of the traditional banks would argue they orientated to a service approach a long time ago. Is there really product innovation in consumer finance? Theres has been tinkering around the edges but credit cards, overdrafts, mortgages havenā€™t really radically differed. That their service orientation misses the mark with customers is a important but it is being tolerated by customers.

For me (and l have mentioned this elsewhere) is when price comes into the proposition and whilst ā€˜freeā€™ banking remains the current fintech entrants will never really leverage their real benefit, that their cost are lower. Service is important too, but innovationā€¦ can l live without notifications/emojis yes l probably can.

One of the real benefits of the internet is that the cost of use fell significantly and for things like Facebook, Twitter et al itā€™s free if l sacrifice my personal data and insights. Until fintech entrants can tap into that, they will always have an enthusiastic base but will they wonā€™t significantly brake into mainstream.

My partner and l are very similar in many ways (not looks l have them) he doesnā€™t get my fintech thing. For him itā€™s all about having stuff in the same place, interacting via the same channel etc. I say ā€œwell thereā€™s an API for thatā€ he shrugs his shoulders and says whatever l will stay where l am.

To get to a billion accounts there are many people like that to persuade and for me the easiest quickest way to influence them folk is through cost. Until cost is an issue in the UK fintech entrants wonā€™t storm the market. It will be really interesting to see how Monzo performs in markets where there is cost such as Europe and the US. My guess is whilst Monzo is born of UK itā€™s more successful markets in terms of pick up, retention, income generation will be outside the UK.

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Maybe they would but they havenā€™t. Hereā€™s Monzoā€™s co-founderā€™s explanation of what that can really be -

I think we can all agree that, thatā€™s not what the challenger banks are pinning their value proposition on :slight_smile:

Iā€™m not sure what you mean by this? The challengers will be analysing our personal data to provide insights & earn revenue.

You can get used to that, itā€™s going to take a while for some people to see how what the challengers are doing is different :slight_smile:

Cost is an issue (although not the only one), the legacy banks make about half their revenue from punitive fees - the fees that the challengers arenā€™t charging. Customers know this (even if they donā€™t know how the revenue models are structured) & they donā€™t like it.

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Think my point was here was the internet became free on that premise, l am happy for my browsing history to be known used for insights. Am l happy to for my bank transactions to be used in that way. I am, not sure the wider population is ready for that.

Absolutely Banks have cloaked free banking in this model. I know itā€™s not free! But for me it is my DDs donā€™t bounce, l never go overdrawn etc but some poor folk are paying for my ā€˜freeā€™ banking. But letā€™s say l incurred a couple of charges a year, would that in my mind be resolved that the rest of my banking is free. Maybe. For me l think the fintech entrants need to get together and start pushing Government that they have a more cost effective sustainable business model than Banks. That would benefit those less well off through less charges and budgeting tools. People shouldnā€™t be paying Ā£8, Ā£15, Ā£25 for a returned direct debit when all it is one line in an electronic file being sent. Until we rid the notion that banking whilst in credit is ā€˜freeā€™ in this country l fear the market will not radically change.

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Thereā€™s only one way to find out :wink:

Iā€™m not sure that people think like that. I assume that people feel entitled to ā€˜freeā€™ banking because (almost) nobody charges for it. So they donā€™t see any charges as being offset by the remaining services being free. But I could be wrong!

:point_up: :point_up: :point_up:

That would certainly be helpful!

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https://thumbs.gfycat.com/ImpossibleCheeryLacewing-size_restricted.gif

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I think you could take a completely different approach to 3d-secure - Iā€™d quite like a version which just prompted you in the app to confirm the purchase with a notification - this would mean you need your phone for transactions which require 3d secure, but thatā€™s fine. This would be much more secure than yet another password to remember (which many people probably reuse with other stuff), and would set Monzo apart. Eventually Iā€™d quite like the option in Monzo to always require in-app approval of transactions over Ā£1000 say made by the card which could tie in to this quite nicely.

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No it is not! You want to be able to do transactions even when your phone has a flat battery or off for repair.

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Iā€™ll be very suprised if Monzo doesnā€™t eventually implement something like this -

https://n26.com/n26-is-now-3d-secure/

which sounds a lot like that :+1:

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Whilst I agree with you, I think you and I do have to accept that Monzo doesnā€™t want to be ā€œmobile firstā€ but ā€œmobile onlyā€.

If you think that you may ever need access to your money in situations where your phone is unavailable (and you canā€™t use your card) I would strongly advise to have meaningful amount of money in a 2nd current account that doesnā€™t have such limitations.

I agree. I really would love a mobile 2FA based 3DS but it needs to have fall back that doesnā€™t require your phone. Now to avoid that fallback being a security hold then itā€™ll probably need to more annoying ask you for some additional info

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Yes, thatā€™s exactly what I was thinking of Alex.

As to not having your phone, donā€™t try a 3DS transaction when your phone battery is flat I guess? Iā€™d be fine with that tradeoff as it is such a rare situation. There have to be some tradeoffs in order to make the account work better than traditional offline banks, and if you want a bank which functions without a mobile, you should probably use a different one as well as monzo, because they are definitely focussed on your phone being with you (as an example see their location security feature, which you canā€™t use without the phone).

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I agree it should be mobile only.
I just object to forcing use of 2FA thru the app

Iā€™d ask then: If itā€™s mobile only, isnā€™t 3DS requiring the mobile the logical and perfect solution? If you can use 3DS without mobile, it wouldnā€™t be mobile only anymore.

The way I see it is no bank is perfect and no bank ever will be. However think how long the traditional banks have been around and how much money they have to invest in R&D.

Now compare that to what Monzo has achieved in three years, starting from scratch and making every penny count. Personally I already think the Monzo mobile banking experience is far superior compared to HSBC for example, so am really interested to see the great features a year from now.

That said I donā€™t put all my eggs in one basket. I get paid in to my traditional bank account, then transfer so much of my salary in to Monzo that iā€™m allowing myself to spend each month.

I use Monzo for my day to day spending and online purchases, then my traditional accounts for saving as itā€™s simply not an area Monzo targets.

That works for me and I believe i get the best of what Monzo currently offers and the best of traditional banking.

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That looks great! I find 3D Secure an inconvenience but necessity. The way N26 have implemented it would remove the inconvenience part :slight_smile:

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And a side-note:
The quality of narrative is high. Looking forward to seeing the N26 offering. Theyā€™ll be a worthy player.

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