Yes. Why not? The ATM useage charges are a problem where people go back packing on a world tour to far off places, charges in Europe are much lower, compare say 50p in some EU countries and £5 in certain Asian banks.
Maybe this could be a service tied into TransferWise/CurrencyFair/Midpoint or similar, who would then handle the actual exchange. For larger markets (e.g. Euro, Dollar) Monzo could also set up their own local accounts to allow for more efficient transfers to be bundled up into large consolidated settlements, which would allow for any received payments in those currencies to offset the outflow.
In the future this is a realm where blockchain-based international exchange would work well - as well as local exchange. Blockchain-based ‘currencies’ are best thought of as as replacement for EMV/SEPA/IBAN/etc systems rather than as actual end-use currencies in their own right - but the volatility risk there is still high with current implementations like Bitcoin.
This is a shame, if charges are on the cards. I’ve been selling Monzo to friends and family on fee-free international use. Do these statistics take into account the fact there is no profit being generated from overdrafts yet, and might overdrafts cross-subsidise foreign withdrawals?
If it is truly a small minority, maybe a fair use policy might work? Using data to work out the average amount spent abroad per week, then allowing ‘average’ users free withdrawals under this amount, and charging heavy users?
I doubt overdrafts would cross subsidise fee free ATM withdrawals outside Europe that would potentially wipe out some / all of Monzos early profit potential
- your Idea of average use limit is I think quite fair and totally transparent - if you know what it is - and really the current ‘limit’ is just that - a fair usage figure that Monzo is willing to accept - I could see it being different for different users and in fact is at the moment with the differing levels of verification
It was just a genuine question. I’m not banking minded, so don’t know if the lower ATM fees in the EU are all tied in to an EU agreement. Something that we are in the process ofcoming out of.
We’re not going to introduce anything immediately and we want to figure out a fair solution in conjunction with our community (all of you!)
Roughly speaking, a year’s worth of UK ATM withdrawals for an average user might cost Monzo £1. ATM usage within the EU costs another £1 per user. Outside-EU usage costs about £8. And that’s averaged across the entire Monzo userbase of hundreds of thousands of people. In reality, these outside EU ATM costs are driven by a very small fraction of users, some of whom are each costing Monzo £100+ per year in ATM costs alone.
On the other hand, some of our users are very frustrated by the £5,000 annual ATM limit, and want to withdraw even more. So these people should probably be able to withdraw more than that, as long as they bear the costs.
@tristan is going to lead some work over the next few weeks talking with our user-base to figure out a fair strategy that doesn’t impact the vast majority of users, but prevents a small minority causing disproportionate cost that has to be subsidised by everyone else.
Travelling with Monzo ✈️
Transactions abroad or in a foreign currency
The Monzo Current Account Preview
ATM Fees Abroad: Asking the Monzo Community to decide pricing
:tr: Monzo in Turkey
:newspaper: The UK’s answer to Facebook or Google? (interview with Tom) - The Evening Standard
Currency conversions for digital nomads
Avoiding ATM Fees, Loaning Money to Monzo & Marketplace Services
"Thoughts on ATMs"
Monzo banking charges
This is a great insight. My take away from that is that UK withdrawals should be free, always. I kind of assume that will be the case when the current account is here?
Unless Scotland become independent and then it will be treated as overseas
Should Scotland become independent then they aren’t classed as United Kingdon. Sorted
Then Great Britain rebrands as Little Britain
Nothing to add here that needs to be said.
Thanks for the actual figures, Tom, interesting. Are the ATM fees charged to Monzo per withdrawal, or a percentage of the amount (maybe some of the contributors here with banking experience already know this)?
We have an Italian Bank (MONTE DEI PASCHI DI SIENA SPA).
Will I be able to transfer GBP directly into our bank using my Monzo card?
Or will I need to use it at an ATM to get Euros and put them in over the counter?
Appreciate any help and ideas.
When the current accounts launch, there will be a TransferWise integration so you should be able to use that to transfer funds from Monzo to your Italian account.
I’ve already used TransferWise to transfer funds from Monzo to my euro bank (Bunq). Very easy via the TransferWise app. I wonder what benefits we’ll get when they integrate with Monzo current accounts. Preferential fees?
Thanks Alex. So I presume that as I will be doing this next week at our bank in Italy it would be best to get Euros from an ATM and han those over the counter?
Yes, you’ll need to do that for now I’m afraid. I expect that you could withdraw the cash in England & get your bank to convert it to Euros when you pay it in but they probably won’t give you such a good exchange rate
Thanks Alex. As this will be the first time I’ll be using Monzo in an Italian ATM, are there any tips?
I’ve used Monzo at Italian bank ATMs. No fees and a great exchange rate