Challenger Banks - what am I missing?

MisterMotivated

sal_III wrote: »

the primary driver for using current account shouldn't be the interest rate.

Why not? Like Takmon and many others on here, most of the accounts I have were opened for interest earning purposes. I don't care if my bank alerts me immediately to tell me what I already know, i.e. that I spent some money.

With the transition to cashless society the availability of service and customer support / speed of resolution are much more important factors. And in that field the new fintech banks are clear winner. At least in my view YMMV

I can see it being a while (if ever) before we're a completely cashless society but, so far, none of my banks have ever failed me when trying to make a payment - either via card, ApplePay or online - or access my money (perhaps I'm just lucky as even TSB's issues following their IT overhaul didn't impact me). And don't think the new app-based banks are completely immune to tech meltdowns/security breaches or some other drama simply because it hasn't happened yet in their few years of existence. As soon as they are affected, will you rush to defend them?

MisterMotivated

MisterMotivated wrote: »

And don't think the new app-based banks are completely immune to tech meltdowns/security breaches or some other drama simply because it hasn't happened yet in their few years of existence.

MSE_Callum wrote: »

Around 480,000 Monzo users need to update their app and change their PIN, after numbers were stored in files in a part of the bank's internal systems that could be accessed by some of its staff...

Well, that didn't take long...

JuicyJesus

Depends what you want. I don't find Monzo much more useful than Nationwide (or any other high street bank) because I run everything through credit cards to get cashback and 1% and 0.5% back on everything I spend is worth more to me than having a nice app, and the point of the app falls away if you don't spend everything through a debit card and your only other outgoings are a couple of Direct Debits.

Some people find the spend categorisation stuff invaluable - my fiancee swears by it, but still wouldn't use it as her main account. Lots of people do use it as their main accounts without issue. Ultimately, just use whatever works for your purposes most comfortably - if you can't see a use for what Monzo offers over a standard bank then don't bother with it.

System

I would certainly not use them as my main current account - yet...

Have got/tried Revolut, Curve, Starling & Monzo

• Revolut is essentially a forex/travel product and is fine but I certainly wouldn't load large amounts of funds to it.
  
• Curve seemed to randomly decline for no apparent reason, it wasn't worth retaining as I prefer a better UX.
  
• Starling seems fine so far, not really used so much but will see how it goes. Nothing fantastic that I can see though.
  
• Monzo was ok but really struggled to understand the love some people have for it. It's simply not that special.

JuicyJesus

Heng_Leng wrote: »

• Monzo was ok but really struggled to understand the love some people have for it. It's simply not that special.

The Monzo fanbase is just perplexing to me. I get that the app is nice, and the little card mascot is cute the first few times you see it, but once you get beyond that you have a rather limited-service bank that throws emoji everywhere and talks to its customers like they're imbeciles, while also (from my past experience) taking about nine years to respond to support messages. Say anything bad about it and it's like you insulted peoples' mothers. Really strange. It's just a bank.


I've got a bit more time for Starling since they seem a bit more professional and seem to have fewer people looking to defend them to the death.

IvanDP

Horses for courses really, if you are happy with your bank and have no need for another account then you are missing nothing.

I have a nationwide current account, which is my main account and at least for now I would not close because of the benefits:
I have had it so long I still qualify for the free European travel insurance
A credit card with an exceptional limit and low APR with no overseas fees

I also have both a Starling and Monzo account for the following reasons:

Starling: Holiday money saving and spending (no overseas fee, and a bit of interest)
We also save change to put towards our holiday spending money and like the fact we can pay
cash into it through the post office with no limits on the amounts paid in in coins
(unlike most banks)

Monzo: Everyday small purchases and as a back up account should anything go wrong with my main
one. Plus more fee free overseas spending
I did have a Nat West account for the same purpose, but switched it to Monzo because for us,
it offered better value

Yes, I could just use the Nationwide credit card abroad fee free, but I always like to have a belt and braces approach when we are travelling.
(And yes, as you have probably gathered, we travel a lot)

Hope this explains a little as to why we are using the "challenger" banks

jonnygee2

The Monzo fanbase is just perplexing to me... Really strange. Say anything bad about it and it's like you insulted peoples' mothers. It's just a bank.

Where is this fanbase exactly? Even their own community forum is full of long term users complaining about features they don't have yet.

Ken68

My decorator recently asked to be paid by cheque so that she could perfect her skills on the iphone. The future is here today.lol.

Dird

Yeah imo people are going to "digitial banks" because they think they're trendy by providing features like piggy banks. Someone mentioned no branches = reduced costs but the customer isn't seeing any of it, no digital banks mentioned on MSE as having good savings rates...instead it's GS (although GS/Marcus has no branches here it's not a real challenger bank..huge company entering a new market), TSB, NW

I use Starling because I like the MC exchange rate without interest being applied (unlike Halifax Clarity). I also use it when in the UK as they don't charge for UK purchases. When not travelling the balance is very low though and even when travelling I add a little and top up as needed
I use Revolut for converting currencies
Have seen no reason to use any of the others like Monzo/n26 etc

redux

Ken68 wrote: »

My decorator recently asked to be paid by cheque so that she could perfect her skills on the iphone. The future is here today.lol.

Was it the so-called challenger or traditional main banks that introduced this innovation?

According to an MSE article in Oct 2017, Lloyds/H'fax/BoS looked likely to be the first to do this, early last year, though the article doesn't even mention the challengers.