I did not say Monzo dropping Free ATM use was bait and switch, I was responding to the post immediately above mine by James B in which he suggested not dropping free use at the start of the current account but attracting people in with free ATM use then dropping it in 2 years. That clearly is bait and switch.
Yes it is. I didnât realise you were replying to a previous post. Didnât make the connection.
Does anyone know what the size of the UK current account market is because assuming that most are UK customers then 400,000 (assuming the population of ~65million or whatever and removing the <18) is edging up towards 1% of people having some form of monzo card which is a massive achievement (I think).
But back to the point, five times the number of users for the prepaid (assuming the same spread of ATM usage) presumably means five times the fees and in cost terms makes monzo a bit of a victim of its own success when it comes to ATM fees.
As of 2013 it was estimated there were 65 million - source
The market for personal current accounts (PCAs) in the UK is significant, not
only in terms of value but also because PCAs are virtually essential to modern
life. Almost everyone has a current account and they are used daily. It is
estimated that there are some 65 million active PCAs generating revenues of
ÂŁ8.1 billion for providers in 2013
If Monzo introduce fees for foreign ATM machines and youâre not happy about it. Just get a Starling account for those transactions. You can FPS money across in the blink of an eye and withdraw it, fee free, from your Starling account.
Hopefully there will be found a way to cap free of charge use, beyond which a small fee can be charged
This is actually a very good idea. If you pay in over ÂŁ800 a month and have few direct debits then you get perks like free withdrawals abroad.
That or limit it to a certain number of days/transactions abroad before charges kick in.
My wife and I go to her granâs in Spain for about 10 days every summer - then sometimes if we can afford it weâll go somewhere else for a week or so too. So thatâs maybe 3 weeks max abroad per year. I think thatâs probably average?
So maybe if someone has, say 5 or 6 ATM transactions over more than about 4 weeks, with no UK transactions inbetween then the charges kick in, because theyâre obviously abroad for more than just your average family holiday.
totally dislike that idea. Do not want Monzo priviledging the rich by offering those with higher incomes better terms than those on lower salaries.
Your find quite a lot of legacy banks have minimum deposit to get benefits such as interest etc⌠but they also offer a free tier that has no bells and whistles.
Yes but I am hoping Monzo donât replicate this and be just like a legacy bank. Hopefully they are fair and offer same services and perks to all.
Whislt I agree that Monzo shouldnât be replicating features just because most legacy banks have them, Monzo has stated that the model they are following now for free withdrawls abroad is just not viable.
They need to find a solution that allows the majority of their users to benefit from free withdrawls abroad without losing money.
Rewarding the rich isnât the vibe I got from Monzo so far. I donât think that rewarding customers that bank with them regularly, as opposed as just wanting a holiday card, is a bad idea.
Maybe ÂŁ800 a month and 3 direct debits is too much, I donât know, but I think itâs an avenue that at the very least should be explored.
My own two cents
I agree, maybe this was just an unfortunate choice of criteria -
but Monzo certainly is capable of identifying regular users, who arenât just using the card like a currency card so this is feasible.
What no Monzo Premier?
I think one of the many reasons customers hate the legacy banks is they way they shunt most customers into long queues on the phone or in branches, unless theyâre very high earners or hold significant assets with them. Imagine the novelty of a bank offering âpremierâ service to all customers
Hopefully not. And I would rather not see a ÂŁ800 cut off or a number of Direct Debits. You may earn ÂŁ650 net and have your salary and all bills thru Monzo versus someone with ÂŁ1000 a month spare change paid into Monzo and a couple of direct debits with Monzo just to get certain perks while not using it as their main account. Also you may not own your own home and have direct debits for gas and electricity and water as you could rent and your standing order to your landlord cover your rent and utilities combined. Any rules put in place to allow free withdrawals for some will be utilised by the better off and provide a barrier to use by those on lower wages. One account for all and either everyone gets withdrawals free or everyone pays a fee, we should not just have the better paid getting free withdrawals abroad but the lower paid not.
Just keep it simple and charge people what they cost Monzo. If the amount is low enough (like for UK withdrawals) then absorb it.
There has to be incentive for the user not to rack up high costs for Monzo, otherwise Monzo wonât remain viable as a concept.
Pass the costs on to the user and then focus on giving the user more info, such as crowdsourcing which overseas ATMs are cheapest (or even the cheapest set could be set as free by Monzo) or highlighting other ways of getting cash overseas that is cheaper.
Give more information to the user when they arrive in a foreign country, for instance how likely they are to need cash. I imagine lots of people withdraw cash theyâll never need. I still take foreign currency when I go abroad âjust in caseâ but if I could see that 98% of Monzo users who had been to the country reported not having needed cash then I likely wouldnât have bothered.
Highlight that people can get foreign cash in advance (instead of using an ATM when theyâre there) at good rates using their Monzo card and where they can do that cheapest.
I totally feel like some kind of traitor whoâs lost touch with his roots now
Maybe ÂŁ800 was too high? I just meant a usage pattern that indicates that youâre using the account as your main everyday account for all your banking. There absolutely should not be any kind of two tier account.
It was tongue in cheek!
Believe me HSBC premier is there so they can make a personalised attempt to separate you from your money instead of using semi automated methods. They soon lose interest when you ask difficult questions about chargesâŚ
Compared with First Direct it is way behind. And I have high hopes for Monzo to take over the mantle.
I am eager to leave my legacy bank. I find the interface clunky and slow and transactions take forever to show up.
It would be lovely to have free transactions under a current account, but if itâs not doable, itâs not doable. One of those things.
Right so here is the thing, Monzo is spending an inordinate amount on international ATM fees and so need to cut back, yet we have a big thread for people to get golden tickets, many of which go along these lines âHelp, Iâm going away In a few days and really need a golden ticketâ with a user that registered approximately 1-10minutes before that post.
Does anyone else feel slightly conflicted by this?
Here is my point, if itâs an issue then why are we saying here you go in a big thread, have a card, spend some cash and increase the bill. I get if youâve waited weeks for a card then youâre probably more likely not to just use it whilst youre away then stop using it when you get back to blighty.
I dunno, I guess my point is that I know some people will turn to active users in the UK when they get back from their hols and its balancing that with the few that the few that we never see after the holiday.
Surely if we think this is an issue then we should be prioritising the card for people who have waited their turn not everyone who just turns up and wants a charge free holiday card. I think Its perhaps just doesnât send the right message.
Thoughts?