I’m a mortgage advisor. Can someone tell me (preferably from Monzo) why they are reluctant or unable to offer wealth management products?
It seems a basic concept that in order for a company to be successful, they need to make some money. Having funding rounds and devaluing shares is not a viable financial plan for profit… is Monzo aware of this?
I understand and support Monzo’s dismantling of the set norms and trying to help the little guy. But why can’t they help the little people (and them) make some money, by offering even the most basic of products (from which they can take commission)? Is it outside the realms of possibility that Monzo starts getting serious and making some money, in a typically no-BS straightforward Monzo fashion?
Never been one to invest short-term (and I want to hang onto my shares), but it’s looking increasingly like Monzo doesn’t have a plan for profit… what is the plan? Is there a plan? Do you guys want to make one?
keep Customer head count rising
Using Monzo as current account
Business accounts
Paid for premium services
Interchange fees
Interchange fees for business accounts
Overdrafts
Loans
driving down customer servicing costs
yes I think they have a plan
I guess I’m just saying what Monzo is offering currently is pretty small change… compared to other financial products, like mortgages, like investments etc. Also some of those things you’ve listed don’t necessarily make any money.
LOL. Tricky double negative you’ve employed there I don’t think that
Business accounts
Paid for premium services
Interchange fees
Interchange fees for business accounts
Overdrafts
Loans
driving down customer servicing costs
I would just like Monzo to make more money… to be bolder… to upset the norms of banking like we all know it wants to Why do you say no to other financial products Monzo?
As an investor wouldn’t we all like it if Monzo made more money …Im not saying no to other financial offers …and if I were it doesnt really matter Monzo will do what they think is best for them , I guess that Monzo want to get on some sort of sound financial setting before branching out more and applying for more licences to offer other financial services
Everyone has ideas for Monzo to make more money, some more crazy than others. They’re doing a pretty good job at the moment and have a plan of action in place.
I’m sure they’re aware of what your suggesting and will get to it at some point but they can’t do everything at once.
No of course not, sorry I meant people who say things like Monzo should start it’s own crypto currency for example. That was a recent suggestion to make them “loads of money”.
You may be interested to know that some of these have definitely been discussed internally in one form or another. (Read the word “discussed” how you want )
The short answer is that to do these things well and with all the regulation that comes with being bank would be a lot of work and a large upfront cost.
In my opinion, Monzo will do some of these one day - but Monzo is still only ~5 years old and one of those years has been spent during a pandemic - during which we’ve had other priorities
Thanks for the response Theo. I absolutely understand the upfront costs. They would be huge going it alone. I guess my idea was that Monzo could be underwritten by someone else… some old institution somewhere looking to take advantage of the fintech market, but without the tools to do so… anyone… Bueller?.. anyone?..
And of course I quite understand about the pandemic! It’s impacted us all. And it’s great that you are (personally) of the same opinion. But adapt or die and all that
My own personal pick for investment would be airbnb at this point (as well as Monzo of course!!)… Imagine the boom in holiday lettings once everyone is allowed to go on holiday. It’s going to be a bloodbath
Wasn’t integration of some of these things via 3rd party providers part of original vision (marketplace concept)? So presumably have already been subject to 4-5 years of discussion, planning and partnering attempts?
I don’t think that
Monzo will do what they think is best for them , I guess that Monzo want to get on some sort of sound financial setting before branching out more and applying for more licences to offer other financial services
I meant people who say things like Monzo should start it’s own crypto currency for example. That was a recent suggestion to make them “loads of money”.
)
Spectacular own goal there. I still have Tom in my heart, that’s my excuse!