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  • FIRST POST
    • IvanDP
    • By IvanDP 17th Sep 19, 9:38 PM
    • 80Posts
    • 30Thanks
    IvanDP
    Monzo now has 3 million customers
    • #1
    • 17th Sep 19, 9:38 PM
    Monzo now has 3 million customers 17th Sep 19 at 9:38 PM


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

    What are the forum's thoughts?

    https://monzo.com/blog/2019/09/16/three-million
Page 1
    • Gary_Dexter
    • By Gary_Dexter 17th Sep 19, 9:50 PM
    • 6,540 Posts
    • 4,340 Thanks
    Gary_Dexter
    • #2
    • 17th Sep 19, 9:50 PM
    • #2
    • 17th Sep 19, 9:50 PM
    What small time are we talking?

    They were founded 4 years ago.
    • IvanDP
    • By IvanDP 17th Sep 19, 9:56 PM
    • 80 Posts
    • 30 Thanks
    IvanDP
    • #3
    • 17th Sep 19, 9:56 PM
    • #3
    • 17th Sep 19, 9:56 PM
    What small time are we talking?

    They were founded 4 years ago.
    Originally posted by Gary_Dexter
    Fair point
    But still pretty good going
    • pramsay13
    • By pramsay13 17th Sep 19, 10:08 PM
    • 839 Posts
    • 1,219 Thanks
    pramsay13
    • #4
    • 17th Sep 19, 10:08 PM
    • #4
    • 17th Sep 19, 10:08 PM
    And how many customers actually make them money?

    I'm a customer but I only have it as a backup for overseas spending when my other two cards fail.
    • Thrugelmir
    • By Thrugelmir 17th Sep 19, 10:17 PM
    • 64,813 Posts
    • 57,211 Thanks
    Thrugelmir
    • #5
    • 17th Sep 19, 10:17 PM
    • #5
    • 17th Sep 19, 10:17 PM
    And how many customers actually make them money?
    Originally posted by pramsay13
    You wonder if they'll become a takeover target if they achieve any scale in the fragmented US market.
    “If the financial system has a defect, it is that it reflects and magnifies what we human beings are like. Money amplifies our tendency to overreact, to swing from exuberance when things are going well to deep depression when they go wrong. Booms and busts are products, at root, of our emotional volatility.”
    ― Niall Ferguson
    • snowqueen555
    • By snowqueen555 17th Sep 19, 10:18 PM
    • 962 Posts
    • 635 Thanks
    snowqueen555
    • #6
    • 17th Sep 19, 10:18 PM
    • #6
    • 17th Sep 19, 10:18 PM
    Still early days for a bank, they have come a long way in a short amount of time. Profit isn't the most important thing in a company, especially an early one.

    Out of the app banks, Monzo is probably the best one I've used.
    • Thrugelmir
    • By Thrugelmir 17th Sep 19, 10:34 PM
    • 64,813 Posts
    • 57,211 Thanks
    Thrugelmir
    • #7
    • 17th Sep 19, 10:34 PM
    • #7
    • 17th Sep 19, 10:34 PM
    Still early days for a bank, they have come a long way in a short amount of time. Profit isn't the most important thing in a company, especially an early one.
    Originally posted by snowqueen555
    For banks it is. One only has to look at how Metro Bank is now struggling. Balance sheet strength is all important.
    “If the financial system has a defect, it is that it reflects and magnifies what we human beings are like. Money amplifies our tendency to overreact, to swing from exuberance when things are going well to deep depression when they go wrong. Booms and busts are products, at root, of our emotional volatility.”
    ― Niall Ferguson
    • IvanDP
    • By IvanDP 17th Sep 19, 10:44 PM
    • 80 Posts
    • 30 Thanks
    IvanDP
    • #8
    • 17th Sep 19, 10:44 PM
    • #8
    • 17th Sep 19, 10:44 PM
    For banks it is. One only has to look at how Metro Bank is now struggling. Balance sheet strength is all important.
    Originally posted by Thrugelmir
    Interesting point, thank you.

    On the subject of profitability.......

    https://www.altfi.com/article/5556_n26-disregard-for-profit-digital-banking-uber-moment
    • hollie.weimeraner
    • By hollie.weimeraner 18th Sep 19, 7:45 AM
    • 1,836 Posts
    • 1,300 Thanks
    hollie.weimeraner
    • #9
    • 18th Sep 19, 7:45 AM
    • #9
    • 18th Sep 19, 7:45 AM
    I opened an account each for me and my wife and also set up a joint account.

    The app is great and has a lot of good features and as snowqueen says it's probably the best around.

    On the down side you can't have a joint account without having a sole account!

    I tried switching my sole account to Nationwide a couple of weeks ago and the switch was rejected. In order to do the switch I've had to close the joint account which is a bit farcical.

    Other than this it's excellent so far.
    3.975 KW Solar PV. 15 Canadian Black 265w panels with Sunny Boy 3600tl Inverter. SSE facing with 30 degree pitch. In occasionally sunny Sheffield.
    Toyota Auris Hybrid Tourer
    • colsten
    • By colsten 18th Sep 19, 9:29 AM
    • 11,014 Posts
    • 10,298 Thanks
    colsten
    I am one of the Monzo customers who just have the account as a backup for travelling. I am more of a Starling person, not least because I have a need a Euro account. If Monzo folded tomorrow, I wouldn't really miss them.
    • snowqueen555
    • By snowqueen555 18th Sep 19, 11:21 PM
    • 962 Posts
    • 635 Thanks
    snowqueen555
    For banks it is. One only has to look at how Metro Bank is now struggling. Balance sheet strength is all important.
    Originally posted by Thrugelmir
    Not really, profit isn't the most important thing in an early stage business like Monzo. Growth and maintaining traction are more important than short term profits. Any profits are usually spent on growing the business.
    • adindas
    • By adindas 18th Sep 19, 11:29 PM
    • 4,158 Posts
    • 2,632 Thanks
    adindas
    For banks it is. One only has to look at how Metro Bank is now struggling. Balance sheet strength is all important.
    Originally posted by Thrugelmir
    Not really, profit isn't the most important thing in an early stage business like Monzo. Growth and maintaining traction are more important than short term profits. Any profits are usually spent on growing the business.
    Originally posted by snowqueen555

    I think they will need to get the right balance between profit and growth. Focusing too much on growth they might end up like "Loot".
    • born again
    • By born again 19th Sep 19, 12:10 PM
    • 335 Posts
    • 148 Thanks
    born again


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

    What are the forum's thoughts?

    https://monzo.com/blog/2019/09/16/three-million
    Originally posted by IvanDP
    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....
    • Thrugelmir
    • By Thrugelmir 19th Sep 19, 12:36 PM
    • 64,813 Posts
    • 57,211 Thanks
    Thrugelmir
    I think they will need to get the right balance between profit and growth. Focusing too much on growth they might end up like "Loot".
    Originally posted by adindas
    Banks make their money by lending it out. Not providing current accounts or savings accounts.
    “If the financial system has a defect, it is that it reflects and magnifies what we human beings are like. Money amplifies our tendency to overreact, to swing from exuberance when things are going well to deep depression when they go wrong. Booms and busts are products, at root, of our emotional volatility.”
    ― Niall Ferguson
    • 18cc
    • By 18cc 19th Sep 19, 1:06 PM
    • 1,831 Posts
    • 1,348 Thanks
    18cc
    Not sure there is any bank I would actually 'miss' if it folded

    The only one I can think of is that my son might miss the bank of Mum and Dad but other than that....
    • colsten
    • By colsten 19th Sep 19, 1:31 PM
    • 11,014 Posts
    • 10,298 Thanks
    colsten
    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....
    Originally posted by born again
    Number of customers is hardly an indicator for profitability. The Monzo CEO has recently warned that losses will continue to mount up at Monzo. Did the FD CEO have to make similar statements?
    • 20SmthngSver
    • By 20SmthngSver 19th Sep 19, 2:01 PM
    • 343 Posts
    • 111 Thanks
    20SmthngSver
    I was with someone the other day who was saying how great Monzo and all it does is and then when she went to pay it didn't work.
    • snowqueen555
    • By snowqueen555 19th Sep 19, 11:10 PM
    • 962 Posts
    • 635 Thanks
    snowqueen555
    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), and the app alerts you on every transaction. This is surely something the main banks could do themselves, but they are missing a trick. The Monzo app is quite good in that regard, and caters to the younger crowd I think.
    • antrobus
    • By antrobus 20th Sep 19, 1:34 AM
    • 16,874 Posts
    • 23,870 Thanks
    antrobus
    Banks make their money by lending it out. Not providing current accounts or savings accounts.
    Originally posted by Thrugelmir
    Yup, that's basically it.

    Of course banks can, and do, charge for the provision of a service. But it would be a big ask for a bank to make any money doing that in the consumer market. Traditionally UK retail banks make money out of having a big pile of almost free cash from current accounts etc, which funds lending to SMEs.

    Mondo did start some consumer lending in their last FY, They lent £19m and wrote off £3m of it, Which is a blooming big write off rate, and suggests they haven't got the hang of it yet.

    More generally, the real issue is that Monzo is just one of a long list of start up fintech banks, all of whom want to be the Amazon of banking, whatever. One or two of them might succeed, but most of them will fail. Perhaps Monzo will be one of the winners. Or perhaps it will reach the stage where it's burnt through it's funding with no profit in sight, and get bought by RBS for a fiver,
    • stripeyfox
    • By stripeyfox 20th Sep 19, 6:07 AM
    • 423 Posts
    • 441 Thanks
    stripeyfox
    I'm a new Monzo user. I haven't made it my "main" bank yet. I still have my salary paid into HSBC and all my bills come out from there. I transfer what's left into Monzo and use that as my day to day spends and it works really well. Instant notifications, savings pots, round ups, categorising spending etc etc.
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