Monzo Crowdfunding 2018


(Giridhar Tammana) #101

I liked the way they have done it through app.
And the questions you have to answer before investing, nice touch, may be Crowdcube would steal that for themselves.


#102

Crowdcube? I like it that way because I use it to my advantage by using my cashback credit card and earn a little bit of cashback every time I invest instead of just paying directly from bank where I get nothing. :face_with_hand_over_mouth: But of course I always pay it in full.


(Alex Sherwood) #103

It’s interesting that you thought the FT’s story was negative, I thought it was pretty positive, especially by Alphaville’s standards -

https://ftalphaville.ft.com/2018/12/04/1543934579000/What-crowdfunding-is-really-about/


(Emma) #104

Positive but a bit over the top. Someone who doesn’t understand forums


(Andrew Clark) #105

I only saw negative when I read it, I’ll give it another go with more open-minded eyes. I’ve found recent articles about crowdfunding and Monzo so negative that I think I may have been triggered by the wording I mentioned above.

It’s an odd one, I’d like to think that the financial press would be supportive of a UK startup like Monzo but their reaction to the annual report and the crowdfunding is anything but.


#106

One of the reasons I bring it up is because the overdraft situation was presented as protecting vulnerable people, ahem credit cards can be worse.

There is a long list of issues with crowdfunding platforms, for example they use game mechanics to create a fear of missing out, or to sway the crowd with progress bars, or the way the 100% target is fake like a easy win.


#107

I agree. It can make people worse off if they don’t handle their finances well. I remember reading someone said it’s time to take out a loan so he can buy Monzo shares. Uh oh.


(Alex Sherwood) #108

Obviously Monzo could have easily blocked users from using their overdrafts in this crowdfunding round. They could also stop them from investing using other services to a certain extent, using a similar approach to the one that they use for their gambling block.

The question for me is: should they stop people from using their overdraft to invest in general? (Maybe that’s what you meant). And if anyone thinks that the answer’s “yes”, what other bad habits should they block & do you want your bank to be the judge of how you use your money?

I have a feeling that The Times wouldn’t have been so keen to publish the story if they’d thought that all the way through &/or thought that their readers would too..


#109

Most methods make it harder to use a overdraft for this purpose rather than blocking it completely.

The only real way to stop Monzo’s overdraft being used is to turn it off but this has it’s own issues.

I don’t think your Bank should police overdraft usage.


#110

Shows some more stats including ‘amount invested’. The £0-100 is the largest group


#111

Interesting that the £2,000 values looks like it might be second highest (close call).

A mixture of wanting to be part of Monzo and wanting to profit from Monzo maybe.


#112

The gambling block thing seems like a Good Thing, and it’s opt-in. You could imagine a bank that took that idea much further and only let you do virtuous things that are good for you - stop you buying cigarettes, or prevent you from having an overdraft etc. It’s weird imagining a bank that had opinions about how you should spend your money - it would be a new kind of bank. Services that act as your better self when you’re having a moment of weakness…

Or a stockbroker/inv platform that wouldn’t let you buy fund X while there was a fund Y that did the same job but that was cheaper (a service I would use).

May also be ethical/transparency questions about processing user data to generate behavioural nudges that (yes, benefit customers, and) serve a commercial goal. Questions about how the data is used, how the decisions get made.


(Emma) #113

They couldn’t stop you buying cigarettes as it’s a merchant code they block for the gambling. There are other things behind the scenes you can request if you’re a vulnerable customer to do with limits and overdrafts and there’s hopefully a few other things to come


(Jonny) #114

Do you work for Barclay’s Rod?


#115

ha ha! no I don’t @Jonny - I write things like this (shameless self-promo!) for a living, so fintech/banking stuff sometimes comes up.


(Emma) #116

I’ve had a couple rants already today about how what Barclays have done is great in principle but rubbish in reality. Hopefully Monzo add some friction to disabling the restrictions


#117

If you’re addicted to gambling, smoking, or drinking, would a button in your banking app cure you? Seems like a nonsense to me. If you’re that badly addicted you would be better off seeking professional help.


(Emma) #118

With the greatest respect if you’ve never had to deal with it you’ll never understand. Willpower can be shaky, added friction can get you over a difficult time until you’re able to make the right decision again


(Alex Sherwood) #119

There’s a really good story from a Monzo user called Danny about how helpful he’s found their block, check it out -

Here’s Martin Lewis’ explanation of why this is important too, which is based on the research that the Money & Mental Health Policy Institute (founded by him) has done -


#120

With the greatest of respect, you don’t know anything about me or what I’ve had to deal with. I’ve had some of my best friends die from things like alcoholism and drug abuse. I can tell you with absolutely certainty that a button in an app that can be turned on or off by the user wouldn’t have stopped them from killing themselves.