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Big congrats to Monzo, and I can't wait to see what their marketplace looks like when it's finally fleshed out. What's the state of account switching in the US
by dazbradbury 7y ago
Big congrats to Monzo, and I can't wait to see what their marketplace looks like when it's finally fleshed out.
What's the state of account switching in the US? I'd have thought a big part of Monzo's strength in the UK is the mandated account switching service:
https://www.currentaccountswitch.co.uk/ https://www.currentaccountswitch.co.uk/
Is there an equivalent system in the US to reduce the friction of switching banks?
- obeattie 7y agoI don't think an equivalent of the Current Account Switch Service exists in the US, which is a shame. But I don't think this is crucial. We had around 5,500 switches via the Current Account Switch Service in May, but added around 200,000 new customers.
- dazbradbury 7y agoOh wow - I thought the current account numbers were driven far more by switching. Presumably it impacts the % where salary is being paid in? But at those numbers maybe it's irrelevant! Great job again, and as I say, can't wait for the fully fleshed out marketplace.
- silasdavis 7y agoIt's unfortunate that the fully automated service requires you to close your the source account completely when switching. I was about to push the button on getting my salary paid into my monzo account but a diversity of current accounts has its uses. I think the justification for only providing switch and close was that it was the only way to reliably avoid double payments IIRC. Personally I would have taken that risk and resolved them manually if necessary.