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Overdrafts, interchange, reasonable fees (Monzo Plus, business accounts), commission (marketplace: savings accounts, insurance etc).

by lol768 7y ago

benj111 7y ago
I don't believe it offers most of those services, overdrafts in the UK are being restricted so be much less profitable [1], I believe one of its sell points is no commission on foreign currency, so no money there. So are they planning on launching (their own) savings, or insurance? [1] https://www.bbc.co.uk/news/business-48553193 https://www.bbc.co.uk/news/business-48553193
- matthewmacleod 7y ago
  It offers literally all of those services.
  - benj111 7y ago
    Its savings products are other peoples, they are just a reseller. And the only insurance I've seen is travel insurance as part of a packaged bank account. Or did I miss something?
    - lol768 7y ago
      Yeah .. that's the entire premise of Monzo's marketplace concept. Really not sure what point you're trying to make here. Monzo offers the current account and works with other organisations to offer the savings accounts (with the same UX, in the app, just as if it were a native pot). If the ISA didn't have "provided by OakNorth" in small text next to it, the customer wouldn't know any different.
- lol768 7y ago
  >I don't believe it offers most of those services Incorrect. >overdrafts in the UK are being restricted so be much less profitable Incorrect, the fees are being regulated to ensure they're reasonable and customers are not being taken advantage of. There is still room to make a profit (and as the article says, they are per customer). >I believe one of its sell points is no commission on foreign currency I mentioned commission in relation to the marketplace concept, I am unsure why you are discussing foreign currency, it's irrelevant to the point I made. >So are they planning on launching (their own) savings, or insurance? They already offer savings accounts via multiple partner organisations. Unsure why you have such a fixation on bringing this entirely in house -- the bank still profits from customers using these partnered services. Since the beginning the company has been pretty transparent and clear in that the idea is to build the best current account and make use of other providers as appropriate.
  - benj111 7y ago
    "Unsure why you have such a fixation on bringing this entirely in house " A bank takes in deposits then lends them out, when trying to understand a bank it makes sense to talk about them in those terms, because if it isn't doing those things, it is really a bank. Monzo are currently charging 50p/day £15.50/m, £186.00pa on a £20 overdraft they seem unlikely to get away with charging the same level apr, which in turn will mean less profit.

Overdrafts, interchange, reasonable fees (Monzo Plus, business accounts), commission (marketplace: savings accounts, insurance etc).

by lol768 7y ago

Overdrafts, interchange, reasonable fees (Monzo Plus, business accounts), commission (marketplace: savings accounts, insurance etc).

benj111 7y ago

I don't believe it offers most of those services, overdrafts in the UK are being restricted so be much less profitable [1], I believe one of its sell points is no commission on foreign currency, so no money there. So are they planning on launching (their own) savings, or insurance? [1] https://www.bbc.co.uk/news/business-48553193 https://www.bbc.co.uk/news/business-48553193

matthewmacleod 7y ago
It offers literally all of those services.
- benj111 7y ago
  Its savings products are other peoples, they are just a reseller. And the only insurance I've seen is travel insurance as part of a packaged bank account. Or did I miss something?
  - lol768 7y ago
    Yeah .. that's the entire premise of Monzo's marketplace concept. Really not sure what point you're trying to make here. Monzo offers the current account and works with other organisations to offer the savings accounts (with the same UX, in the app, just as if it were a native pot). If the ISA didn't have "provided by OakNorth" in small text next to it, the customer wouldn't know any different.
lol768 7y ago
>I don't believe it offers most of those services Incorrect. >overdrafts in the UK are being restricted so be much less profitable Incorrect, the fees are being regulated to ensure they're reasonable and customers are not being taken advantage of. There is still room to make a profit (and as the article says, they are per customer). >I believe one of its sell points is no commission on foreign currency I mentioned commission in relation to the marketplace concept, I am unsure why you are discussing foreign currency, it's irrelevant to the point I made. >So are they planning on launching (their own) savings, or insurance? They already offer savings accounts via multiple partner organisations. Unsure why you have such a fixation on bringing this entirely in house -- the bank still profits from customers using these partnered services. Since the beginning the company has been pretty transparent and clear in that the idea is to build the best current account and make use of other providers as appropriate.
- benj111 7y ago
  "Unsure why you have such a fixation on bringing this entirely in house " A bank takes in deposits then lends them out, when trying to understand a bank it makes sense to talk about them in those terms, because if it isn't doing those things, it is really a bank. Monzo are currently charging 50p/day £15.50/m, £186.00pa on a £20 overdraft they seem unlikely to get away with charging the same level apr, which in turn will mean less profit.