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Monzo now has 3 million customers
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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.
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 :rotfl:).0 -
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.
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====0 -
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.
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/PlusThis is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
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.
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?0
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