What does Monzo offer that Revolut doesn't since they introduced the 3% Cash Withdrawals Fee?

Monzo Chat
21

In what sense backed? Lloyds invest in Revolut?

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22

Revolut received £1.5 million in venture capital funding from a consortium which included Balderton Capital, Seedcamp, and Venrex Investment Management. There is no indication of any involvement with Lloyds Bank other than as Revolut are NOT a registered bank and NOT covered by FCSC protection their card holders funds may be paid into a Lloyds Bank account by Revolut

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23

I don’t think so. As far as I know Revolut’s ringfenced account in which they deposit client money is with Lloyds. Calling that backing seems incorrect. Essentially Revolut has an account with Lloyds.

Edit. Oops, @anon44204028 beat me to it…

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24

I find it weird then that Revolut advertise it as a “Current Account” then?

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25

Do they, tough? The only thing I see on their website is

Revolut. Beyond Banking
The only account for your global lifestyle.

26

I am sure Monzo don’t need any backing from another financial institution. Monzo have a full banking licence and are operating like other UK banks regulated by FCA & PRA and backed by FSCS protection.

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27

Yes They Do;

http://news.revolut.com/post/156938742072/introducing-revolut-current-accounts

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28

That’s really interesting. I thought only those with banking license can offer current accounts?

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29

They say they are regulated by the FCA, there are different levels of regulation but my understanding is you can only offer a current account if it is actually a Current Account…

30

You can offer current accounts if you are not a bank but can’t call yourself a bank. You do need to be registered with FCA PRA or foreign equivalents such as Bank of Ireland regulators.

Examples include e-money institutions like Monese.

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31

when you open a bank account with them under IBAN and BIC the Bank field is set to Lloyds. my assumption is some sort of deal for bank accounts?

32

in all honesty i have no clue how this works. i dont mind if monzo is backed by a bank or not as long as my money is protected

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33

Your money is NOT protected with revolut. They are required to ringfence the client money, but if a rogue employee runs off with it and revolut go bust, you are SOL - there will be no government dept stepping in to refund you.

With Monzo, you are protected up to the FSCS limit (85k at the moment, but it varies as it is currently set by the EU at 100k euros or equivalent). Whatever goes wrong with Monzo, you will get your money back up to that limit.

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34

Does this apply to Monzo pre-pay ?

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35

Nope. Only current accounts.

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36

17 posts were merged into an existing topic: 3% ATM fee abroad!

39

It isn’t £6.99. It is £72 per year (paid upfront) or 12 monthly payments of £6.99 (or £83.88).

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41

if that is what it says on their website it is wrong

Lloyd’s is the insurance corporation
Lloyds is the bank

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43

@anon44204028 is right though. Check their respective websites. Lloyd’s is an insurance business. They are not going to hold anyone’s money. To me it adds to the overall lack of credibility and seriousness that revolut shows.

Incidentally, in my opinion FSCS protection is a much stronger and safer assurance than ringfencing, because FSCS is statutory, while ringfencing depends on the bank (for example it offers no protection at all against rogue employees, failure in procedures, etc.)

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44

Yes it does say that.

But you are not protected against fraud at revolut - they can transfer your ringfenced money out, dissappear and you have no comeback. The money simply wont be in the ringfenced account to pay you.

It’s unlikely but a lessor protection than FSCS, where should the above happen, the government will step in and refund you.

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