Lots of varying opinions in here, and they are all perfectly valid so thank you all as always for sharing.
This isn’t a great situation, but we’re working hard to resolve it.
But, it’s pretty nuanced.
Regarding transparency, I think the blog post is pretty comprehensive. We hit the agreed upon limit with Investec much sooner than we had anticipated, and it didn’t allow us time to line up the second provider. That’s our fault for not anticipating the demand for it. There’s no way around that, and for the people this directly affects, we’ve let them down.
But it’s interesting, because when we launched this, we saw a fair amount of feedback here along the lines of “Why would you put loads of savings into this when there’s better rates with X or Y bank”
Some people thought it unlikely that anyone would hit the individual limit of £250k. Well… some people certainly did, and the popularity of the feature meant that we had to try and speed up plans quicker than anticipated (I don’t have the exact data, this is just my general understanding)
What we learn from this is that the emotional and behavioural feelings we have around money, and specifically around visibility of the money (even with a transfer in/out delay!) are more important than economic logic.
I’m sure there’s still people scratching their heads about this who just can’t fathom why you’d put large sums of money into one account when you could put them into another account that gives you a higher interest rate.
But that’s the same exact logic that takes you down the path that the app (in any industry) with the most features must be the “best one” and therefore the one to use. But that is rarely the case. When Instagram first launched, there were competitors that had funding, did the same thing, and with tons more features. Most of those companies don’t exist anymore.
I digress, but I guess the point is that we all are guilty sometimes of thinking too rationally about things. Even those of us who have to make decisions here at Monzo, and it can be exacerbated by the fast-moving nature of a startup environment.
We’re big enough now that we don’t expect anyone to cut us slack when things go wrong. All we can do is explain what happened, and let you know that we are working very hard to fix it.