8 ms·
Monzo is awesome; they deserve all their success. They have single handedly forced banks to compete on UX, though Monzo still wins by a significant margin. Hug
by Sholmesy 8y ago
Monzo is awesome; they deserve all their success. They have single handedly forced banks to compete on UX, though Monzo still wins by a significant margin.
Huge stat from the article;
> And in terms of customer growth, extrapolating stats from a recent Nationwide annual report (PDF link), the challenger bank says it now accounts for 15 percent of all new bank accounts opened each month in the U.K
Is this accurate? 15% of bank accounts opened in the UK each month are for Monzo? That's an insane stat.
No affiliation, just a happy Monzo Beta user.
- gadders 8y agoYou can tell they are starting to optimise for revenue rather than user satisfaction, though. They recently prevented you from loading your Monzo card via another debit card.
- grey-area 8y agoYou mean they recently stopped you using a debit card to pay money into your bank account? Why would you do that? If you want to move money between banks you can do so instantly with faster payments. I don't say that to be facetious, I think there's a difference of perspective here which is only going to widen if you think they are a prepaid card. They set out to make a bank, and started with prepaid cards, but that was never the end goal, it was just a way to test out the UI before getting a banking license, so expecting people to pay money in as you would to any other bank account makes perfect sense. This is not a prepaid card you load up, it's a bank account, and they don't want users to think of it as a prepaid card. So I think their user satisfaction for people who want a bank account is doing well - as evidenced by their new customer growth. Can't wait to see them launch in the US market as it is also ripe for disruption and I think they have the scale and ambition to do well there.
- raesene9 8y agoI think the comment was around reduced usuability. It used to be if you wanted to move money into a Monzo account, you could do in all in-app, via a linked debit card. This provided a nice usuable way to get money into the account from a "legacy" bank that doesn't have a good mobile story. Now if you have Monzo + a legacy account (as many do) you have to go log-in to the legacy account to move money to Monzo. Ofc once you go "full monzo" that's not a problem any more but it's still early days for that and Monzo have had enough service glitches to make people a little nervous of committing to having it as their only account, I think.
- grey-area 8y agoOther banks don't offer that (top ups via card), and I don't think it's something you should expect of a bank account - it was always a stop-gap. If you're using it for spending regularly and don't want to switch, just set up a standing order for a bit of money each week/month to try it out. I think as they want to become a bank this is part of that process - their focus needs to be on those who use it as their main account. Personally I switched almost a year ago (when they introduced CA), and am happy with that choice so far - kept my old bank just in case but haven't needed it. Re outages many banks have had major outages recently, far more than Monzo... They had a few glitches early on (late last year), but I'm fairly confident of their ability to scale now.
- raesene9 8y agoIt indeed isn't a common feature of bank accounts. However it is a feature that Monzo had, which was easy to use and they got rid of it (IIRC due to the costs of providing it), which decreased usability, which I think was the original point the poster made...
- baby 8y agoindeed. But Monzo is better than most (all?) banks and this is what people used to top up their cards before they removed the feature.
- lmjabreu 8y agoWonder if they considered offloading the transaction fees onto users. I'd certainly pay for the convenience and would have continued using Monzo (Barclays copied the card freeze and atm locking so no need for Monzo, esp. with this).
- jonathanbull 8y agoSpeaking as someone who used to top up by debit all the time, a couple of clicks in the app was far easier than switching apps, re-authenticating with my main bank and then making the payment. I don't blame them for doing it - apparently it was costing around £4 million in fees - but it's definitely harmed the UX unless you want to go full Monzo.
- grey-area 8y agoSure, that sounds painful if that is what you were used to. Just out of curiosity, why did you not set up a standing order? If you're using it regularly surely this would work just as well? Seems annoying to have to constantly top it up with small amounts. Was that a commitment too far? When I was transitioning I did a v. small standing order first for a few months and used it for spending, then upped the amount, then eventually switched over salary, direct debits etc.
- m_t 8y agoFor beta user, back when Monzo wasn't yet a bank account, the only to put money on it was to pay by card. This was a habit that a lot of us had taken, and as described above, it was just easier to do all in one place: - Go check your monzo app - Notice you're low on fund - Top up using your card A lot of us haven't switched completely, because why would you when other current account can give you travel insurance, small % of interest, etc.
- lol768 8y ago> For beta user, back when Monzo wasn't yet a bank account, the only to put money on it was to pay by card. This is incorrect - it was possible for a long time to top-up via bank transfer. Certainly during beta. It simply required using a shared sort code/account number with a specific numeric reference which tied the payment to your account. It wasn't as instant as it is now (with Faster Payments), but it was still definitely possible.
- dharma1 8y agoI've pretty much stopped using Monzo after they removed the card topups. I used to use it all the time while traveling, and usually top up on the spot when the funds on the account run out and I needed to pay for something. Bank transfers really doesn't work for that use case. Now I'm using Revolut for the same purpose (they still allow card top ups), not much difference to Monzo although I really, really like Monzo customer support.
- gadders 8y agoI already have a bank account I'm happy with. I specifically got the Monzo card as a prepaid card to use when spending abroad, which is what they originally sold as one of their key benefits.
- baby 8y agoto answer your question, you used to be able to "top up" your Monzo card directly from the app. It was really quick if you needed more money on the card. As someone else commented elsewhere, most people use it to pay for things, but still use another more ancestral bank to get their paycheck. Now you need to go in your bank's app, log-in there, go through many menus (because banks which are not Monzo or Revolut have no clue about UX) in order to send money to your Monzo card. It's still free, and instantaneous. It's just more cumbersome now. They also removed the "no fee withdrawals abroad" and now you pay a pretty substantial fee (3%) above 200GBP per month. I might be wrong on these numbers but this is what I remember.
- grey-area 8y agoSorry, that probably wasn't clear. I was trying to say this was a deliberate choice as they want to be a bank, not a prepaid card. If they are your bank you don't need to add money periodically with a card. The fee for withdrawals abroad is unfortunate but perhaps they'll be able to up the limit sometime.
- baby 8y agooh yeah definitely, I got used to toping up via Lloyd's app and I'm fully supporting Monzo to grow.
- digianarchist 8y ago> You mean they recently stopped you using a debit card to pay money into your bank account? Why would you do that? That's the only way to get money into a Revolut account. That, Apple Pay or a SWIFT transfer which costs a fortune.
- new_here 8y agoThis was costing them millions of pounds a year in fees. Quite a pricey tactic to remove friction of funds flowing in and totally reasonable for them not to sustain it while pre/early revenue. Edit: Bank transfers are instant in most cases and don’t cost Monzo. So we should do our part to help them if we want something better.
- dharma1 8y agoBank transfers are pretty painful, especially when you need the top-up right away. I would happily pay for the card transaction for the convenience, if it's an unsustainable cost for them.
- baby 8y agoNo, a better future is ahead of us: Monzo as your main bank. So let's pay this little friction price in order to get this better future. One thing that bothered me more was the fee for withdraw abroads.
- Herald_MJ 8y agoRevenue vs user satisfaction isn't entirely a binary choice though. If Monzo offer a feature which costs them a lot but offers user's some convenience, it's a bit of a balancing act to figure out what the convenience is actually worth. Debit card top-ups were costing Monzo millions per year, and seems to me to be only marginally more convenient than a bank transfer. Debit card payment into a bank account is kind of an odd feature anyway, it seems like a bit of a relic from back when Monzo weren't a fully-fledged bank, and were just offering a prepaid card.
- Balero 8y agoI imagine they are moving away from pre-paid cards, and towards full accounts. The pre-paid cards were just there to get them off the ground, and isn't their main focus anymore. They recently released a savings "pot" (how they split up money) with interest (1%, provided by another company). Which is a step towards offerings of other banks, and in my book is a step towards user satisfaction.
- corobo 8y agoMoved away - they shut down all the pre-paid cards earlier this year https://monzo.com/blog/2018/01/18/future-of-prepaid/ https://monzo.com/blog/2018/01/18/future-of-prepaid/ Edit: More relevant link: https://monzo.com/blog/2018/04/04/ending-prepaid/ https://monzo.com/blog/2018/04/04/ending-prepaid/
- ed_balls 8y agoI was Monzo Beta user, but switched to Revolut. Much more features.
- raesene9 8y agoOne small point to watch there is that AFAIK Revolut does not have a banking license so they're not covered by the FCA deposit protection scheme. Not a worry unless they go bust of course, but one to be aware of ...
- tim333 8y agoI've got Monzo but am more using Transferwise. I prefer web based to app and they have some other advantages.
- pbowyer 8y agoMy friction with Transferwise (as a debit card beta user) is that you can't set up a standing order to fund it. You have to go into Transferwise, say how much you're transferring, then do the transfer (by logging into your banking app if you want a free transfer). I'm using it for overseas expenses, but the time taken to fund it and keep an eye on it is outweighing the savings made using it.
- roymurdock 8y agoIf you have an iPhone and a debit account linked to Apple Pay, it's as simple as using your thumbprint to authorize a transfer. The fees are minimal and the money, converted at close to the market rate, sans a tiny fee, shows up in your account in less than an hour. really a revolutionary system when you compare it to opaque wire and bank transfers that I had to use 3-4 years ago when last traveling abroad
- flurdy 8y agoWithin the echo chamber of my friends in London most now have a Monzo account. I would say 60% use Monzo. 20% perhaps use similar banks Revolut or Starling (though for some it is because they work for them). And perhaps 20ish% still haven't switched but all seem keen to. Granted this is a very niche tech-savvy group of people between 20 and 40, but the established banks must be starting to feel the effects? Most have a regular bank as their main account but like me hardly use it anymore, and some probably closed them altogether. Though I am feeling more resistance from family and my non tech friends. But I think with time they will also try it and be converted.
- deleted 8y ago[deleted]
- jaziek 8y agoI'm in the same demographic, same kinda of social group, and most of the people I know who use monzo still don't use it as the account where they store the bulk of their cash, it is more for travelling than anything else. The free (up to £200) withdrawals and inter-bank exchange rate make it a no-brainer for that, but there's still nothing about it which would make me switch away from a current account with a decent interest rate and added extras like insurance, or cashback on bills.
- deleted 8y ago[deleted]
- campbellmorgan 8y agoWhat UK current account do you have with a decent interest rate? By decent do you mean 0.02% or something?
- chrisseaton 8y agoWhy do you care about interest on a current account? How much are you going to keep in there anyway?
- C1sc0cat 8y agoWhy they seem to offer less than Santander 123 does to me.
- deleted 8y ago[deleted]
- baby 8y agoEverybody I know in the UK uses Monzo. Monzo is even a verb as in "can I Monzo you?" or "let's split with Monzo" It's just that freaking awesome.
- mrec 8y agoReally? I live in the UK (London) and had never even heard of it. This is starting to feel a bit like China Mieville's The City & the City, two worlds inhabiting the same space but never interacting...
- baby 8y agoWell, to be fair London is freaking huge. Depending where you live in London you mileage might vary. But now that you know about the "orange card" you might be able to notice it around you.
- Shoue 8y agoThere are ads on the tube now so it's harder to not notice today. Before it was just the hot coral card that was advertising it and easy to notice, especially so when you have one. I remember last year when it was cool and special to see others use it, now it's just par for the course here in London.
- rleigh 8y agoI've never heard of it until reading this article! Maybe I'm not the target demographic or something. Or is it only marketed in London?
- jaziek 8y agoYeah, it's definitely achieved "verb" status in my social groups. Transferring between other monzo users is so incredibly quick and easy. Even people who aren't in your contacts list, with the bluetooth transfer feature. It's great.
- roymurdock 8y agoI don't understand debit culture in the UK I'm an American who has a Monzo card and has spent a fair amount of time in London. Why don't people use credit cards???? The rewards are usually pretty good and as long as you pay off your balance every month, you're getting ~3% of your purchases back in rewards/credit I stopped using Monzo because there are no rewards! Sure it gives me notifications and is easier to see my balance/add money than my Barclays account, but what is the point of the good UX/UI? Is it for fraud detection and making sure the merchants/bank aren't cheating you? I ended up going back to using my oyster card/barclays card when contactless was the only option, and credit for everything else. Transferwise was also a godsend for converting money with clear visibility into the exchange rate/no fees I agree that Monzo has been a great catalyst for UK banks to get their shit together on mobile apps etc. but there is nothing fundamentally different about their business...they're a debit-only bank with no physical presence and a nice app - and why don't more people use credit cards instead? Is it because it makes P2P transfers easier than the archaic bank transfers?
- baby 8y agoI'll try to provide an answer, as I'm European but moved to the US. We don't have this "you're in debt" culture that I think you create when you start school in the US. Very early you have to take a loan in order to study, which facilitate the idea of owing banks. I opened a secured card here in the US, but I never use it, because it just feels weird to "owe" the bank money and not to be able to pay it back as fast as I can. I usually have to wait for the end of the month, and if I mess something up then I have to pay huge fines (that you cutely call APR). The more you get into this system, the more you seem to collect credit cards. I have friends with dozens of them. What happens if you lose one? Or if you get your wallet stolen? Or if you forget that after the first year you start paying fees on it? etc. Most of us can live without the rewards if we get other benefits. For example with Monzo, you get added security, you can use it all over the world for free, you can send money to your friends or split the bill easily, you can track your finance, set limits on your budgets, see what was that 30$ you spent a month ago and where it was, round up your purchases to save money, etc. There's just so much benefits that you end up using it all the time as your default card. That's how they get you I guess. But it's so much more practical and easy to use that people have fell in love with their branding as well.