Alright, so here is my summary of basic issues I have with Monzo’s current business approach and tactics. I should preface this by saying I’ll ignore issues I have with aspects of Monzo’s functionality (or lack thereof): There is plenty, but Monzo is a young business, and they’ll have a chance to pick up what’s missing, and in the mean time I could supplement missing features by using other banks.
I will also try to be brief in each point. As such this isn’t meant to be a balanced discussion, but just a short outline of my concerns:
Reliance on Marketplace for sustainability
In the post-Cambridge-Analytica world I’m just not too happy with the idea of yet another company analysing my every move and trying to sell me stuff in response. My bank would have uniquely deep insight into my world, not least because it wouldn’t have to make assumptions about my income, age, gender, homeownership status etc., but I would know those things as fact because I told them. By implementing social functions (pay with friends, this forum, etc) they would also learn a lot about my social circle.
Polarising their customer base
(Hyperbole alert!) The way in which Monzo seems to instil an almost religious zeal in some of their followers to the extend that they tend to forgive every misstep, write love letters on their forum, and just can’t imagine anyone having a bad experience with their bank is unhealthy. You may say that the forum isn’t part of the product. But you have probably heard people exclaim on these forums how this forum is part of what they love about Monzo. Well, for me the zealous dedication that some customers exhibit is actually turning me off ever more. (And parts of this thread is a prime example.)
Expecting their customers to change behaviour in order to suit their business model
Particularly the discussions about avoiding ATM withdrawals. I mean: it’s a basic feature of banking that I need to get my cash. Monzo are already making that difficult by putting very restrictive withdrawal and other limits on the account. And if on top of that a bank that doesn’t offer some of the most expensive aspects of banking (branches), needs to beg me to stop withdrawing my own cash, I have a problem with that.
Security and privacy as an afterthought
This has exhibited itself again and again: Fingerprint unlock was only recently added after much pressure on the forum. There is still no persistent password. The API was shipped without an easy way for me to terminate access. My security questions and answers are clearly visible in app. I could go on, but my point is: while Monzo express that they agree this is not perfect, and that they want to do something about this, they have shipped the product with serious security/privacy flaws. If security and privacy aren’t core considerations from the design stage, but bolted on afterwards, I am not confident that they are good enough.
Charging overdraft fees when not overdrawn
This is something that just enrages me. I want to say my attitude to this has shifted considerably: At first I was mildly curious. Then I was confused. Now I find it reprehensible. I’m saying this, because this is very unusual for me: Usually, when I’m upset about something, I reach “peak upset” pretty quickly. The next morning I’m like “oh, well …”. But not here: I find it utterly deplorable that a bank would charge overdraft fees on a not overdrawn account, and the more time goes by without it being addressed by Monzo the more I feel that way. And the fact that they position themselves as “ethical”, “pro consumer”, “saving us money” makes it worse. I shall stop here before this becomes a completely incoherent rant.
Anyway, I should probably say that apart from the last two points, none of these would be enough to stop me from using Monzo in isolation. I also don’t think Monzo is a “rubbish bank” to quote @anon95680666. But taking all of these things into account I would struggle giving Monzo more than two stars at the moment. (And that’s before I even start considering missing features.) I would most certainly not recommend them as a bank to anybody (except maybe for those who find it difficult to open an account elsewhere due to lacking documentation, as a “last resort”.)