I can only really speak from a borrowing point of view (as that’s the team I work in).
Somewhat speaking to my earlier point, we’ve already made a lot of changes behind the scenes this year - mainly to how we do income verification when decisioning customers for an overdraft. We’ve also fairly recently started offering £1k overdraft limits again.
There are a lot of other things to come but they’ll mostly be similar behind the scenes changes to our decisioning logic. In the short term mainly to overdrafts to hopefully make more customers eligible. Won’t say too much more than this
I don’t expect it to happen in the next ~5 month I’m afraid. After this then we’ll see - nothing is off the table for the 2nd half of the year.
It’s something we really want to do but but ultimately it’s a pretty huge piece of work and we have a lot of other quicker wins that’ll impact far more customers.
This seems to be the one thing that restrains JA users. No overdrafts, no loans, which could impact our financial progression. Absolute respect for posting & replying but when has no idea of my incomings and outgoings, despite having been #fulljointmonzo for over 2 years - it’s strange
Ah thanks - must admit I’d missed those. I don’t come here as often since things slowed down. The improvements to connected accounts look interesting, although it would have to work with Virgin for me.
I was thinking of, say, Metro bank which had a loan to deposit ratio of 90% by 2015 including a large mortgage portfolio. I do think that Monzo, currently at just 25%, has quite a low ratio considering it has been around for quite a while. I suppose ‘struggling’ is subjective, this could be deliberate strategy, but it is still a very small loan book for a bank of Monzo’s size.
Interesting - thanks for sharing! I’ve always liked Metro - They are actually one of the three companies i hold individual stocks with (This is not investment advice! )
Definitely a different strategy (Mortgages vs unsecured lending) but still, nice to have a reference point. I wonder what their loan to deposit ratio is now they’ve just sold their mortgage book (still more than Monzo I’m sure).
FWIW - I agree with you completely that our loan book is very small - We all wish it was much bigger…
I’m surprised Monzo hasn’t went into mortgage providing.
Though with so many people being made redundant because of COVID I can see why it might be more of a risk now.
That being said, Monzo would have enough data I would guess on some of their users who have been with them for over 3 years to determine if they would be able to successfully continue their mortgage payments… at the end of the day they do know our monthly incomings and expenses.
I’m not. They are currently lending a max of £3,000. Whether that’s for risk reasons or because of the capital they have to distribute, it’s probably a mix of both. But when people start wanting £100/200k to get a house, things get a lot more difficult.
Original post and suggestion is for wealth management - ie: mortgage advice, financial advice, not actually selling mortgages themselves. Perhaps I didn’t make that clear. Mortgage advice is commission based and doesn’t require massive funds that providing a mortgage itself would.
Same goes for the rest of my suggestions - my suggestion is for fee-free commission-based advice, ie: wealth management. I think it’s got lost in the thread somewhere.
edit: it would be advantageous (as before when Monzo tested it in 2019) if it was a 3rd party acting through Monzo, rather than Monzo setting up a huge wealth management centre which is clearly unworkable. That was my idea! I hope that makes it clearer.
If an advice service is the suggestion then I think they’d need to improve on customer service response times first or manage expectations better.
Peoples expectations of a response time for support Vs. what is provided is off at the moment. So I believe that adding more services into the mix would only exacerbate things.
I know someone who recently qualified for HSBC Premier following a fairly substantial promotion. it got me thinking about this and I found this post.
They couldn’t get the account at all during the pandemic because there team wasn’t taking on new customers at the time and when they could be onboarded they had to sit on a phone call for an HOUR to get the service set up.
And all it was is basically removing the monthly fee they pay on their account and adding in some insurance benefits + a new relationship manager… doesn’t sound like a great onboarding service.
The idea is basically to sell people more products. Monzo don’t really have many products for that market, ie investment management, unnecessary insurance policies etc so it’s probably not something they would look into yet
Obviously, HSBC have decided to concentrate on servicing existing Premier customers rather than taking more on during Covid.
fyi - you can’t apply for the HSBC Premier account by offering to pay a monthly fee and the free travel global insurance which covers your family (not just the account holder) is a useful perk
Funnily enough I was just thinking back to when “Making Monzo” was a section in the app and mortgages were at the early stages of being discussed.
Naturally mortgages are very large forms of lending and probably something that will be offered later down the line once the pandemic has calmed down a lot more (especially in Monzo’s typical fashion of being able to offer it with a unique twist ), but for now and from what I can gather in other posts is that Monzo have a few tricks up their sleeve that will not only make them more money in the long-term, but make them very desirable for customers enough to make them switch to Monzo maybe? Just my opinion anyway, I could be wrong of course
for posting & replying but when 
has no idea of my incomings and outgoings, despite having been 
)
(still more than Monzo I’m sure).
), but for now and from what I can gather in other posts is that Monzo have a few tricks up their sleeve that will not only make them more money in the long-term, but make them very desirable for customers enough to make them switch to Monzo maybe? Just my opinion anyway, I could be wrong of course