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  • FIRST POST
    • IvanDP
    • By IvanDP 17th Sep 19, 9:38 PM
    • 84Posts
    • 35Thanks
    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 3
    • born again
    • By born again 21st Sep 19, 6:30 PM
    • 393 Posts
    • 186 Thanks
    born again
    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?
    Originally posted by jonesMUFCforever
    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.
    Last edited by born again; 21-09-2019 at 6:33 PM.
    • SnowTiger
    • By SnowTiger 21st Sep 19, 7:53 PM
    • 3,880 Posts
    • 2,867 Thanks
    SnowTiger
    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.
    Originally posted by worried jim
    RBS (Natwest) has already got got in to bed with Starling Bank and is about to give birth to Bo. See: https://www.fintechfutures.com/2018/08/starling-to-power-rbs-and-natwest-digital-payments/.

    I think it's only a matter of time before the, so called, challenger banks are eaten up by the big boys.

    I wouldn't be surprised to learn that's their business plan: start a new bank, loose a ton of money gaining lots of new customers, then sell out to one of the big banks for a huge profit.

    We saw something similar happen about twenty years ago with Internet providers. Back then everyone and their dog launched an ISP. Most of them were later bought by BT, Sky or TalkTalk Carphone Currys Dixons PCWorld Warehouse (or whatever it's called ).
    • d123
    • By d123 21st Sep 19, 8:17 PM
    • 8,059 Posts
    • 5,261 Thanks
    d123
    I wouldn't be surprised to learn that's their business plan: start a new bank, loose a ton of money gaining lots of new customers, then sell out to one of the big banks for a huge profit.
    Originally posted by SnowTiger
    Starling are saying they will be profitable next year.

    https://www.altfi.com/article/5613_anne-boden-says-starling-bank-nearing-1bn-in-deposits-eyes-profitability-in-2020
    ====
    • SPalin
    • By SPalin 21st Sep 19, 8:21 PM
    • 186 Posts
    • 53 Thanks
    SPalin
    I also fail to understand how come not using 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.
    Originally posted by adindas
    Link is a UK cashpoint network, so it's overseas network is v.limited

    Cashpoint withdrawals are much more expensive via Cirrus/Plus than Link. UK cards usually use their own bank group > Link > Cirrus/Plus
    • IvanDP
    • By IvanDP 22nd Sep 19, 7:40 PM
    • 84 Posts
    • 35 Thanks
    IvanDP
    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.
    Originally posted by Zanderman
    I think this is one of the reasons I have accounts with quite a few of them, like you, I can't see them all surviving.

    Just out of curiosity, which ones do you think will survive/fail?
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