I’m actually a big fan of these value added accounts. Yes, they’ve been mis-sold to people who don’t need them, don’t qualify for them, or can’t get value out of them but they work for us. On a joint account, we pay RBS £16 pm for travel insurance (which we’ve had a good experience claiming on), breakdown cover, mobile phone insurance etc, one of those “taste cards” etc. For two people with two cars, this is pretty good going.
I totally get that Monzo don’t want to be bogged down in providing something like this, but from what I can tell, most banks use a third party to run these accounts anyway (I think they’re called Lifestyle). Could they not be invited to the “marketplace” to offer a value added type “add-on” for those people who are happy with what they are paying their existing bank for these services but would like to move to Monzo for other reasons?
The idea is Monzo users will be able to purchase all services you’ve listed in Monzo’s marketplace.
That means that rather than having to sign up for whichever bundle of services your bank’s decided are best for you (&/or most profitable for them), you’ll have a choice of providers for each service. So if you need cover for action sports in your travel insurance, for example, you won’t have to worry about whether that’s included & the providers will be competing, which should drive down prices.
By creating the marketplace, Monzo will (hopefully) make it easier for users to access these services & certainly make them easier to manage - as they’ll all be linked to your Monzo account. They’ll also be able to do clever things like spot when you might need travel insurance but forgot to buy it, before you left the country or remind you to cancel your breakdown cover, if you don’t renew your vehicle tax.
This is food for thought! I guess that what is so exciting about what you guys are doing is that you have the ability to pull a deeply flawed system to pieces and redesign it from scratch. The marketplace idea is fantastic and I suppose it is exciting to envisage your banking app realising that you are at the airport for example and ensuring you’re covered. I guess you have had preliminary conversations with potential marketplace partners. How is the response? Are they open to new ideas?
Hey Greg - I’m only Day 8 into Monzo, but from the conversations I’ve had so far, we’ve got a lot of partners who are keen to work with us! It’ll take us some time to work on these partnerships and build these great experiences, but watch this space and keep sharing ideas and feedback!
Hi all, unsure if this has been raised or not but me personally would like to pay a monthly fee for some premium services I know we aren’t to far from the launch and I would quite personally like have to the option to pay a monthly fee for premium service just a thought but what does everybody else think?
I would switch in an instant if Monzo did breakdown cover, mobile phone and travel insurance and a credit card. I need a credit card that shows me transactions carried out in real-time not in the next monthly statement.
For those those of us, like myself, that sometimes have to top up by card, why not place it behind some kind of monthly premium service to cover the costs and remove or restrict access to card top ups from/to those that don’t wish to pay?
It’s certainly an idea we’ve considered. As long as all standard functionality is accessible to all, there might be some potential for paid add-ons. We’ve not committed to it, but it’s one idea that’s part of a wider ongoing conversation about revenues.
Suppose it depends on what it’s actually called and the function. Free vs premium sounds like those who don’t pay get a lesser quality product but if you add some features as bolt ons/add ons it sounds a lot better