Monzo now has 3 million customers

Migster

SPalin wrote: »

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.

How is not being a LINK member an issue? Their card is a Mastercard and can be used in any ATM that accepts them, such as pretty much all UK ATMs.

snowqueen555

colsten wrote: »

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.

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.

It's not my main account, so it is nice to know when payments have come in for certain things. I have a habit of constantly checking my main bank account for when I get paid, get refunds etc etc. With Monzo it just tells me, it's no different to getting a text. It's not particularly intrusive.

I use Monese for the euro account. A good account except it's really slow on transfers etc.

jonesMUFCforever

Whether they have 3 thousand thirty thousand or 3 million customers - what is the bottom line?
Without turning a profit they will not be in business long term ; look what is happening at Metro Bank.
Personally I hate those luminous coloured cards.

IvanDP

Zanderman wrote: »

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?

Great point.:T
It's one of the reasons I have opened accounts with quite a few of the digital banks, I too can see some of them disappearing.

IvanDP

jonesMUFCforever wrote: »

Personally I hate those luminous coloured cards.

They are a bit "In Your Face" :rotfl:

adindas

SPalin wrote: »

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.

Migster wrote: »

How is not being a LINK member an issue? Their card is a Mastercard and can be used in any ATM that accepts them, such as pretty much all UK ATMs.

I also fail to understand how come not using Link Network would make Monzo and Starling unsustainable.

In the UK most of ATMs while they are connected to Link Cash Machine Networks, they are also linked to Visa/ Master.

To be used abroad is even more problematic to find ATMs with conneciton to Link.

born_again

Migster wrote: »

How is not being a LINK member an issue? Their card is a Mastercard and can be used in any ATM that accepts them, such as pretty much all UK ATMs.

https://www.bbc.co.uk/news/business-36855983

Mastercard own Link. :T

worried_jim

born_again wrote: »

Should make the normal banks sit up and take notice.
First Direct 30 years old next month. Win awards for customer service. Throw no amount of money to get new customers each year.
Yet have less than 50% of Monzo customers....

I asked the C.E.O. of the bank I work for and he said they have a careful eye on the challenger banks, since then I've noticed quite a few of their features making it onto our banking app. I too have accounts with Revolut, Starling and Monzo.

jonesMUFCforever

worried_jim wrote: »

I asked the C.E.O. of the bank I work for and he said they have a careful eye on the challenger banks, since then I've noticed quite a few of their features making it onto our banking app. I too have accounts with Revolut, Starling and Monzo.

I'm sure if they thought the challenger banks were making a profit they would be buying up some stock to protect themselves perhaps leading to a takeover or of course copying them and providing similar cards/services.
They are not as far as I can see so is there no money to be made?

born_again

jonesMUFCforever wrote: »

I'm sure if they thought the challenger banks were making a profit they would be buying up some stock to protect themselves perhaps leading to a takeover or of course copying them and providing similar cards/services.
They are not as far as I can see so is there no money to be made?

What you have to remember is that the old banks have old systems that can not cope with how the likes of Monzo run their systems.
So even a takeover of Monzo would not bring a current main player anywhere near their level for years.
You only have to look at what happened to TSB when they tried to upgrade their system.

For the likes of the big banks you are talking many millions or even billion £ to even start to look at building a new system. Then transfer years of data over, test, test & retest. Then think about training staff to use it. As well as making sure it integrates with all the other banking systems they do not have control over.

We all fear when we hear that one of the systems we use has been upgraded, as it always leads to a issue with another system.
Due to the hotch potch they have been linked together.