Will the big banks ever get with the times?

RandomUser923759 · 27 May 2018 at 2:10PM

Do we think the big banks will ever get with the times and have more up to date features like MONZO and starling?

RG2015 · 27 May 2018 at 2:29PM

The big banks all have very clunky systems with layers of newer technology bolted on to their ancient legacy platforms.

TSB tried to migrate from the Lloyds platform to that of their new owners, the Spanish bank, Sabadell with disastrous consequences.

To introduce the newer features that Monzo and Starling offer would involve an even bigger upgrade if not a complete redesign. In my opinion, none of them would be willing to take the risk and this is before considering the likely massive cost for no real financial benefit.

EachPenny · 27 May 2018 at 3:08PM

mrchrisbrogan wrote: »

Do we think the big banks will ever get with the times and have more up to date features like MONZO and starling?

The 'big banks' would develop the features if they felt there was a customer demand for it.

What are the features provided by the two banks you mention which you think are really good?

tacpot12 · 27 May 2018 at 3:32PM

Don't forget the big banks also have to support a legacy base of customers, some of whom still prefer cheques and/or who are scared of online banking! Monzo and Starling don't have to provide any services to the older generations of customers that the big banks have to.

masonic · 27 May 2018 at 3:42PM

tacpot12 wrote: »

Don't forget the big banks also have to support a legacy base of customers, some of whom still prefer cheques and/or who are scared of online banking! Monzo and Starling don't have to provide any services to the older generations of customers that the big banks have to.

When you put it like that, it sounds like an age discrimination scandal waiting to happen.

I too would be interested to hear from the OP what state of the art features I'm missing out on by only having accounts with the major banks. I promise I'm not an old person, and if there really is something of value only these new entrants offer I might be tempted to open an account.

takman · 27 May 2018 at 6:54PM

masonic wrote: »

When you put it like that, it sounds like an age discrimination scandal waiting to happen.

I too would be interested to hear from the OP what state of the art features I'm missing out on by only having accounts with the major banks. I promise I'm not an old person, and if there really is something of value only these new entrants offer I might be tempted to open an account.

Well from a money saving perspective the best thing about the accounts are that you can use them abroad and withdraw cash without any fees and an almost perfect exchange (but only £200 a month free foreign withdrawals on Monzo). This is available from the major banks but only as Credit Cards so not a revolutionary feature.

But the best thing about the way these accounts work is that they give you instant notifications of any transactions on the account and as they have no branches you can submit ID using the app. So you never need to visit a branch for any reason which is a chance with major banks.
But I don't think these should be considered "state of the art" they should be basic features on all current accounts.

The fact that they don't use obsolete branches and don't accept obsolete cheques is definetly a big positive. But they don't offer any saving accounts with decent interest or any other bonuses so are not quite an all round bank yet.

m-holland · 27 May 2018 at 6:55PM

The only thing I would like to see is notifications on my phone whenever there is a transaction on my account

EachPenny · 27 May 2018 at 7:40PM

takman wrote: »

The fact that they don't use obsolete branches and don't accept obsolete cheques is definetly a big positive. But they don't offer any saving accounts with decent interest or any other bonuses so are not quite an all round bank yet.

I don't understand the logic of why no branches and no cheques is a 'big positive'. True, both involve high costs, but the savings the bank are making by not having branches and not accepting cheques are not being returned to you as a customer in the form of higher interest on credit balances (and it isn't clear to me whether there are reduced costs on overdrafts).

Yes, the lack of branches does mean not being asked to go into a branch with ID - but how often does that actually happen with traditional banks? I've never been asked to take ID to a branch for an account I've opened online, although I know there are some people who have been asked.

I see not having branches and not having the ability to pay cheques in as negatives - if I were to have one of these accounts as my sole current account.

takman · 27 May 2018 at 8:13PM

EachPenny wrote: »

I don't understand the logic of why no branches and no cheques is a 'big positive'. True, both involve high costs, but the savings the bank are making by not having branches and not accepting cheques are not being returned to you as a customer in the form of higher interest on credit balances (and it isn't clear to me whether there are reduced costs on overdrafts).

Yes, the lack of branches does mean not being asked to go into a branch with ID - but how often does that actually happen with traditional banks? I've never been asked to take ID to a branch for an account I've opened online, although I know there are some people who have been asked.

I see not having branches and not having the ability to pay cheques in as negatives - if I were to have one of these accounts as my sole current account.

Bank branches and cheques should be a thing of the past, although receiving cheques won't be such an inconvience when paying them in using a photo is rolled out.

It's a positive because the more people that have accounts with banks that don't have branches and don't accept cheques the quicker they can be phased out. Bank branches are pretty obsolete these days when you can carry out all transactions without them using the internet, phone or Cash Machines (apart from paying in cash).

masonic · 27 May 2018 at 8:14PM

takman wrote: »

Well from a money saving perspective the best thing about the accounts are that you can use them abroad and withdraw cash without any fees and an almost perfect exchange (but only £200 a month free foreign withdrawals on Monzo). This is available from the major banks but only as Credit Cards so not a revolutionary feature.

Actually, this is quite a nice feature. I already have a Halifax Clarity card that gives me this benefit, but I need to pay off cash withdrawals quickly as they accrue interest from day 1. So I'm somewhat tempted by this, even though it isn't exactly novel.

But the best thing about the way these accounts work is that they give you instant notifications of any transactions on the account and as they have no branches you can submit ID using the app. So you never need to visit a branch for any reason which is a chance with major banks.
But I don't think these should be considered "state of the art" they should be basic features on all current accounts.

I have a pretty good record of passing the electronic ID checks, so rarely need to provide ID. Last time I did was with Natwest earlier this year and I just needed to take a picture on my phone and upload it, so perhaps this isn't so novel either.

Last time I visited a branch was 3-4 years ago when I had to pay in a cheque. Thankfully, one of my accounts now allows me to pay in cheques by taking a photo of it in their app, so I no longer have any reason to visit a branch.

The fact that they don't use obsolete branches and don't accept obsolete cheques is definetly a big positive. But they don't offer any saving accounts with decent interest or any other bonuses so are not quite an all round bank yet.

Wait, what? They don't accept cheques? But some organisations still insist on sending them. What are you supposed to do if a large company insists it's the only way they'll pay you?

They need to get with the times and offer more up to date features like Mobile Cheque Imaging.

ozaz · 27 May 2018 at 9:10PM

masonic wrote: »

When you put it like that, it sounds like an age discrimination scandal waiting to happen.

I too would be interested to hear from the OP what state of the art features I'm missing out on by only having accounts with the major banks. I promise I'm not an old person, and if there really is something of value only these new entrants offer I might be tempted to open an account.

For me, the big attraction of the app-based banks is the spending tracking and analytics. The apps provide instant notifications of transactions (unlike the big banks), there is more detail about each transaction than you get with big banks, and there are nice analytics of your spending (such as how much you spent on different categories of transactions in a given time period). These features were instrumental in enabling me to feel comfortable switching from mainly cash to mainly contactless payments for day-to-day spending. I was never comfortable using contactless payments with my big bank because I felt I would lose track of how much I was spending.

I still use an account at a big bank as the account that my salary goes into. But I then send my spending budget to my Monzo account via standing order and use my Monzo account for my day-to-day spending.

Fee-fee transactions abroad is a nice bonus, but this is something the big banks could do instantly if they wanted to. In contrast, I doubt they're anywhere near improving their apps to the level of Monzo, Starling, etc.

Will the big banks ever get with the times?

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