As far as I understand it this exactly the case. This is what I meant by not making Monzo profitable as a whole. However as I said previously my knowledge of this is pretty broad strokes 
I tend to refer to the 2019 Annual Report when looking at these sorts of things, but I’m sure things have changed since that was published!
I’m not saying it isn’t. But it’s particularly grating to see every Monzo staff member come on here telling us the fees are the lowest when they’re not.
I think what gets me with some of the high street banks is how expensive it is to be in an unarranged overdraft.
With Santander on an everyday account it’s max charge of £50 per statement period & with Natwest it’s £8 a day with a cap of £80 a month.
I only cite those because they’re two banks I’ve used relatively recently.
In my opinion they’re HUGE charges and disproportionally affect the least well off.
Let’s be fair about this: I don’t think that @Dan5 (or anyone else from Monzo) has claimed that their fees are the lowest. They’re not. Indeed, the whole point of this conversation has been that Monzo isn’t making enough money, hence conversations about how best to increase revenue.
I’ve said it before, but if we value this type of interaction we have to debate these things responsibly and temperately.
The key point in the above is unarranged overdraft - banks are actively trying to discourage people from using them.
Still, you will be pleased to know the regulator has ruled that banks will have to charge customers the same interest rate in future as for an arranged overdraft.
Of course, they also ruled that charging a flat fee per day overdrawn like Monzo does will also be banned in future
Genuine question: is hitting the most financially disadvantaged in society by taking even more money away from them the best way to do it? We’re talking about people who struggle to put food on the table, keep the electric meter topped and pay for clothes for the kids. I’d argue not, and that there are better ways of providing support to customers in that sort of situation.
I wholly heartedly support the abolition of unarranged overdraft fees and it can’t come soon enough.
The fixed daily fee I find slightly more difficult to understand. I wasn’t staff when we first launched overdrafts and I thought charging a daily fee was a great idea.
If I’m in my overdraft and it’s a % I have no idea how much I’m being charged per day. With the way Monzo do it then I know exactly how much I’m paying per day and what the end of month cost would be.
Just gonna leave this link here: 
I said “every” because last four staff members I have seen comment has compared monzo to high street banks who charge high fees. Thereby alluding to the fact that monzo themselves, supposedly, don’t charge high fees.
Admittedly, I could’ve phrased it better.
Please don’t wrongly accuse me, or others, of not debating this reasonably. I haven’t made any wild accusations or statements. Nor has anybody else I’ve seen in this thread.
I’ve posted this before but I know some people have difficulty believing this as it seems counterintuitive but those on the lowest incomes tend to be the best at budgeting - they need to be ( of course, exceptions apply)
It’s people who are slightly better off, who in general, are more willing to go overdrawn/borrow on credit.
As your say, there are other ways to support customers in real financial distress and all banks are obliged to do so.
Of course, the regulators changes mean that the price of ‘approved’ overdrafts is increasing - I think Nationwide said their standard rate would now be 40% - meaning people who use their overdrafts rarely/sensibility will now be worse off
In a previous life I was a teacher with a big pastoral role, and I agree that some of those on lowest incomes are the best at budgeting.
However that budgeting often accounts for every penny, and so when something unexpected happens or something turns out to be more expensive than planned for, there’s no buffer.
It’s unfair and that makes me just a little bit sad.
And those people are charged a disgraceful APR by Monzo for a very small overdraft. What is it - about 900% APR for a £25 overdraft I think it works out as?
However I am with you in that a daily fee is much easier to plan and budget for, too bad it won’t be allowed any longer.
So, back to the context of this thread, would an arranged overdraft be included in a monthly Plus ‘plan’?
I agree with most people here that Monzo shouldn’t do paid for features unless they are similar to the stuff covered under Monzo Plus. I personally, would be quite happy to switch back to a normal bank even at this stage, as the monzo app is pretty unstable for me plus I don’t think there is anything that monzo is currently doing that my nationwide app doesn’t do 
I, too, am not in favour of paying for app features, only bank services. If you wish to have a premium account then the extra services you receive should warrant the monthly fee. The app is there to attract customers, i.e which bank provides the best user experience.
Monzo seems to be concentrating on the technology not the banking service they provide. This is wrong and I will certainly move away from it if nothing changes.
I opened a Monzo account to move away from using cash and to avoid fees for using abroad. I like the instant notification of any charge and the better information about who I am transacting with but I will never use my phone as a card replacement. When considering how safe your money is using a phone as a card is, in my mind, dangerous. Though the digital security is as good as using a PC the physical security of a phone is poor, i.e loosing it, having it stolen.
Do you have an example of what you believe they have concentrated on technology wise and, in your opinion, what they should concentrate in a banking sense?
Again I am not sure how everyone seems to have the two so clearly delineated in their minds, but it seems so
It seems it on the road map, do you not think?
Did I miss the rule that concrete examples is no longer a thing online?
Every feature Monzo creates is a technology feature - what else could it be online on a smartphone? - in order to facilitate banking or some other service
I think we’re (society, not Monzo!) going down the route of eventually your phone being your wallet. Mastercard launched a digital only card earlier this year, and I think over the next few years most banks will follow suit: https://newsroom.mastercard.com/2019/03/25/a-card-for-our-digital-era/
At the moment there’s an option to have a physical card alongside the digital one, but I’m sure that eventually that option will disappear!
Got to agree with almost everyone else. I wouldn’t pay for software features locked behind a paywall. I’m more than happy paying for insurance services and traditional thinks banks make money from, but paywalling new features will make me consider other options.
And personally I think that’s why consumers are expecting more kick-ass features as part of the basics of having a bank account.
If society is almost expecting their phones to be the central hub of everything, then the basics of what I expect from some of these services only increases as technology improves.
I 100% agree with this, and I think Monzo along with other FinTech’s have helped kick start that strategy. I’ve posted about this in other threads (I’m going to write a much longer post at some point…), but Monzo has totally changed the way I approach money.
Just because there might be a paid for option, which might include some extra features doesn’t mean that all new features will be behind a paywall. As always, we are just exploring options right now and as @tomdavies has said - everything is on the table.
It’s why threads like this are so useful, and why sometimes I throw a 
into the mix, because postive, constructive debate helps us shape our internal discussion.