The article quotes Monzo as saying “The bank said it would look to cut costs further by providing more automated help services alongside support staff.”
Personally I’d think long and hard before “automating support”. It’s clear to me that one of things people are crying out for is better customer service and I don’t see automated help contributing to that.
This is not a Monzo bashing thing either, I would say Starling should take this into condsideration as well.
Thanks for the feedback, will pass it on!
Its interesting given Monzo has gone all in on trying to monetize the current account (through multiple ways), although Starling has lots of different revenue streams (the current account, business banking, the payment platform, overseas money transfer…).
I think Monzo are going all in on their Marketplace.
If that doesn’t work, I’m not sure what else they’ll have!
Their annual report suggests that the majority of the losses was dur to the current account migration - building an in-house card proccer, FPS migration, moving people over to the Current Account. Personally, the £33m figure doesn’t surprise me.
Depends what automating refers to. For example, Monzo’s have this feature to reverse £1 authorisations and transactions their system thinks are duplicates, but not with 100% certainty (so you need to tap on a button to cancel the authorisation). These kinds of things could give CS more time to solve “real” problems.
The suprise to me is 80% of all new customers do not use their Monzo account as a primary account with salary paid in.
Contrast that with 80% of all Monese customers using them as their primary account with salary paid in.
But then again, who are Monese’s typical users? My impression from reading many articles in the press is that it is being mainly marketed as a bank account for nomads. Without CASS, not one person I know (with a legacy account) would switch their primary account, and the notion of waiting an hour for an FPS payment seems ancient to them if you consider that direct participants provide you with instant Faster Payments. I think the sort of customers that Monzo and Starling attract already had an account with a UK legacy bank before - and these kinds of users are quite reluctant to switch, barring us early adopters.
I would never rely on CASS to notify merchants of new bank account details. Major retailers do correctly download the data files with the details of changed banking instructions, other merchants never download them and never update your direct debit details until it gets rejected one day and they write a letter to tell you!
As for FPS. While Monese is not currently a DCSP or DCNSP they are often sending FPS promptly so I have found times when it has been within 15 minutes. Also, FPS have now changed their rules so it is no longer the case that only banks can join. Currently a couple of EMIs, including TransferWise, have joined FPS as a directly connected participant. Other companies like Monese are bound to follow.
Again, totally agree.
It’s just that people are very averse of switching in general. Which is why I was questioning what their main target audience looked like, as that 80% figure seems unusually high to me
It would be interesting to also see similar figures for Starling to have something to compare against. As j once said in another thread, someone I referred to Starling really likes the product, but “couldn’t be bothered” to switch his salary over, even if it just takes a short email to your employer. That seems to be the most common sentiment among mainstream accountholders, who are amazed at what the challengers do, but don’t care enough to actually switch.
Monese’s target audience is focussed on people who need an account to receive salary, so they seem to have been successful in that. Whereas Monzo is always being hyped by money programmes and journalists as a travel card, which must harm them a lot.
Is it still though? This seems to have stopped after the 3% fee introduction, and shifted to Starling instead (Masting Lewis in iTV comes to mind). I think Monzo’s has the problem of formerly being a prepaid card, so many who upgraded still use it as such.
I think these things take time to have an impact, it may take Monzo customers until they have their next holiday to realise the impact of the 3% charge, equally it may not be until the autumn after Starling customers have had their summer holidays before we see the impact of recent sign ups.
@MIROW in your opnion, do you think Starling will change their overseas charges in the long term?
I would like to know this too. I was a Metro Bank customer travelling in the US when they announced that they would no longer support free USD transactions.
I guess the bigger question is “How sustainable is free foreign transactions?”.
Absolutely. Having seen so many people with DDs not move across correctly I completely avoided CASS and spent an hour doing it manually.
CASS may guarantee the move and reimburse losses, but it doesn’t help at the time when your mortgage payment has bounced and they’re sending you letters. I also wonder what happens to your credit files when that happens.
It wasn’t worth the risk for me given the trivial process of doing it manually
Hopefully the fact that Starling gets some of their revenue from providing banking services to government departments and financial firms (I am talking banking services not business accounts) rather than like Monzo who rely on overdraft charges and their Marketplace (which seems to be less successful than Starling at this point) I am hopeful that overseas ATM withdrawals will avoid the introduction of charges similar to that of Monzo.
It’s almost as if they’re going after the big guy’s pocket to help out the little guy…? This goes against nearly everything I’ve experienced ever!
They’re basically Robin Hood!
But without the sexy green tights and the archery… (although I’ve never been to the office so who knows?)
It’s the philosophy of Virgin Atlantic. Those in Upper Class subsidise those in Economy. In fact it’s the same with most intercontinental airlines.