Monzo now has 3 million customers

colsten

snowqueen555 wrote: »

Monzo is quite fast, just like the large banks. If I send or receive money through Monzo, it comes in straight away (the other app banks seem slow)

which app banks are slow, and how are they slow? My Starling seems lightning fast when sending and receiving money, definitely not slower than my Monzo. My Starling also has a Euro account, which Monzo still hasn't got. I appreciate not everyone needs that but for me it is essential.

snowqueen555 wrote: »

the app alerts you on every transaction

oh, what a nightmare! The last thing I would want is an alert for each of the many SOs and DDs I have, and for payments or deposits I have just made myself. By all means, give people a choice what kind of transactions they want to be alerted about but don't spam them with meaningless alerts.

stripeyfox

For Monzo is working well as my spending account. I transfer my "left over" money to Monzo which means my bills and savings are ringfenced in my HSBC account.

I can then see what I have left at a glance without having to make the constant mental calculation of balance in my HSBC bank app - potential bills going out - what I spent in tesco three days ago which hasn't gone out yet.

My only real concern about Monzo is their responsiveness in the event of a big problem. When my HSBC card got cloned and I noticed several hundred £ dissapearing - I called them up, got straight through to the fraud them and in the space of one 20 minute phone call it was all sorted out. I don't feel that Monzo's customer service team is as responsive as that. But it may just be a feeling - I haven't had to lean on them yet for anyhing!

colsten

stripeyfox wrote: »

For Monzo is working well as my spending account. I transfer my "left over" money to Monzo which means my bills and savings are ringfenced in my HSBC account.

I can then see what I have left at a glance without having to make the constant mental calculation of balance in my HSBC bank app - potential bills going out - what I spent in tesco three days ago which hasn't gone out yet.

You know you could use different accounts to achieve the same end, whilst getting paid interest? There are 1.45% - 1.6% instant access savings accounts available, and even the Starling current account pays 0.5%. Other instant access current accounts can pay as much as 5%, although these require a bit more initiative.

stripeyfox

colsten wrote: »

You know you could use different accounts to achieve the same end, whilst getting paid interest? There are 1.45% - 1.6% instant access savings accounts available, and even the Starling current account pays 0.5%. Other instant access current accounts can pay as much as 5%, although these require a bit more initiative.

my savings (mostly) remain elswehere (modest that they are) and I have a 5% ISA with HSBC.

Even within Monzo I can save and get 1.2 - 1.7% and on my relatively small Monzo spending account which tends to burn down during the month interest is neither here nor there really.

I'm not saying Monzo is the best at all, but for me at least, it is serving it's purpose at the moment

Zanderman

IvanDP wrote: »

:beer::beer::beer:

Kudos to any start up that can generate that sort of business in such a short time.
(I'm customer No 2,658,974:rotfl:)

What are the forum's thoughts?

https://monzo.com/blog/2019/09/16/three-million

My thoughts, fwiw, are that they are simply an example, one of many, of speculative new banks, most of which, monzo included, aren't making profit, indeed make losses, and so are unsustainable as things stand.

Most of them won't survive.

Simply growing fast and having lots of customers doesn't make them viable.

It doesn't impress me - indeed I'd suggest much of this 'growth' is down to the incentives offered via referrals. How many of those 3 million actually use the account and make them money by using their debit card for lots of transactions? ? How many simply opened an account for the incentive and left the account dormant?

born_again

>> the app alerts you on every transaction <<

colsten wrote: »

oh, what a nightmare! By all means, give people a choice what kind of transactions they want to be alerted about but don't spam them with meaningless alerts.

That is what all banks are aiming to do.

As it is the best way of minimising fraud losses. You see a purchase on your card you have not made. You block the card through the app and ring the bank.
Only one fraud transaction. Rather than when people do not monitor their accounts and you can have hundreds of them....:eek:

20SmthngSver

Thrugelmir wrote: »

Banks make their money by lending it out. Not providing current accounts or savings accounts.

Not quite true. Fixed Term Accounts or Notice Accounts are savings accounts whereby banks can use the money to make money on it, as the customer cannot withdraw it or has to give a notice period of usually at least three months.

For example, a 5 Year Fixed Term Account that pays interest annually won't just sit there, it will be used by the bank to make money, and some of it is paid as interest to the customer. That bank probably keeps a higher percentage of the money it made off of the back of the customer.

Banks can't use Instant Access accounts whether it's Current or Savings to make money as the customer can close it at any time and the funds must be readily available in full to withdraw.

colsten

born_again wrote: »

That is what all banks are aiming to do.
As it is the best way of minimising fraud losses. You see a purchase on your card you have not made. You block the card through the app and ring the bank.
Only one fraud transaction. Rather than when people do not monitor their accounts and you can have hundreds of them

Given that the vast majority of card payments are not fraudulent, sending billions of messages to people who, in the main, know very well that they just made a purchase with their card, seems to be a sledgehammer to crack a nut. I for one would want to opt out of such nonsense - if indeed there is any truth to all banks are aiming to do this. Aside from that, there are other, better, ways of minimising fraud losses.

System

Monzo and Starling don't seem to use the link network for some reason.
This and giving free usage abroad wouldn't make them very sustainable.

born_again

colsten wrote: »

Given that the vast majority of card payments are not fraudulent, sending billions of messages to people who, in the main, know very well that they just made a purchase with their card, seems to be a sledgehammer to crack a nut. I for one would want to opt out of such nonsense - if indeed there is any truth to all banks are aiming to do this. Aside from that, there are other, better, ways of minimising fraud losses.

Who is the best person to know what they have spent?
You answered the question there. YOU.
You do not need to take any action on the text if it is you. But if it is not you. Then you know straight away.
It also means, as a customer you are less likely to have your card declined by the banks security system. Which I know upsets a lot of people, even though it is just protecting their account.
No matter how good a security system is. It is not as effective as the actual card holder.

I guess they could let you opt out, but take responsibility to monitor your account and take the risk you may not get the money back if its after so long.
Rather than the 13 months you have to claim card fraud now.

Or little son/daughter sat at home spending money via a app. I know many customers would love this feature.. Would save no end of frustration trying to get money back.

What better way is there?
As the banks would love to know the answer to that one. Even the like of Mastercard secure & verified by visa are beaten by fraudsters on a daily basis.