Monzo Crowdfunding 2018


(Emma) #121

Maybe not at that stage, depending what they’re dealing with, but people in recovery or people who have identified they have an issue and are able to tackle it themselves.

If you read what Alex posted about Danny you can see how much it helped him


(Vladislav Kozub) #122

It certainly is the best call to seek professional help and every case is individual. However, there is nothing wrong if Monzo imposes this light touch of self-control possibility.

Also, the button cannot be turned off immediately, there is a lag hence will be better than nothing when you are wandering around High Street thinking of getting into the gambling house - you will not be able to to that impulsively.


#123

You’re right that a button could never replace professional help. But a button might help a tiny bit - the testimony suggests that for some people it has. Sorry to hear about your friends, very sad.


#124

Simon VC from Monzo mentioned how the gambling block started on the 11fs podcast a few months ago. In a nutshell it was started by James* during Monzo Time, then turned into a multi-team collaborative effort, and they looked at existing behavioural research to make it as effective as they can.

There was a lot of research behind Monzo’s decision, Barclays seem to have done it because they can, still it’s a good step, and hopefully they’ll expand on it based onfeedback.

*in the podcast he just says James…


(Jonny) #125

Seeing as Freetrade is quite close with Monzo. Is there any future plans to store crowdfunded shares in your platform?


(Vladislav Kozub) #126

Doubt it will make sense unless Monzo IPOs. Shares obtained in crowdfunding are illiquid and of a different nature to the stock market participants’ shares. Hence it would not make sense to mix those with the normal portfolio.

That being said, Monzo said the IPO is one of the potential exits, and if by then Freetrade will be big enough and capable of facilitating that offering, it would be a massively unprecedented event. Even now I can imagine news titles being “challenger broker facilitates challenger bank’s IPO bypassing financial dinasour-firms” :grin:


(Matteo) #127

That would be awesome! :smile:


#128

You said Monzo trademarked “Pots” in an earlier post. Bank of Scotland have literally just rolled out savings pots.

They also have the exact same freeze and unfreeze feature as I posted earlier. I appreciate the innovation on Monzo but it seems like their ideas can simply be copied by existing banks.


#129

Monzo has trademarked the text “POTS” according to a IPO search. Maybe it doesn’t cover the cases other banks are using it in?

Monzo have also trademarked “COIN JAR”, which is interesting.


(Emma) #130

Those are individual saving accounts the exact same as banks have been using for years. Not the same as Monzo have (which take seconds to set up, not minutes)

Calling them pots, well Monzo have a legal department who like to keep busy. Trademark law and usage is complicated so I don’t know exactly the situations where it doesn’t break the rules :woman_judge:

A lot of banks have freeze card now. A lot of banks are introducing gambling block. They are all playing catch up while Monzo do the next thing. There are some very exciting things coming this year which I’m 100% sure won’t look as ugly as that Bank of Scotland image :grin:


#131

Legacy banks are rolling out all the features Monzo have on to their existing apps. They’re even using the same images and names as I’ve shown in those screenshots. It reminds me of those episodes of Dragons’ Den where someone has an idea and the question immediately is ‘what’s to stop someone else from doing the exact same thing?’ If Monzo can’t prevent every other bank from cut/paste their features in to their own apps surely that’s a problem.

You say the legacy banks are playing catch up but they have physical branches and huge customer bases. Legacy banks can already offer overdrafts, loans, mortgages, etc. In many ways, Monzo is trying to catch up with them. Monzo needs to motivate people to switch from their old banks. If the only way to separate yourself from the already existing banks is to say ‘but our app looks better’ then I’m worried.


(Emma) #132

Why is having a physical branch network a bonus? It’s a huge cost for no benefit. Monzo already offer loans and overdrafts, mortgages may come in the form of an integration at a later date.

I think they are persuading people to switch, they’ve acquired over 1.3 million users in about a year and the weekly new sign ups are increasing. The CASS stats also back this up. Business accounts are coming as well as American and European expansion.

If the only thing you think separates them from high street banks is a pretty app then you’ve missed a lot. The fact they’re being copied isn’t a big deal, it just shows they’re doing it right


#133

Having a physical bank means you can just walk in and deposit money at no cost. Currently, with Monzo, you need to use PayPoint which is a 3rd party and they take £1 per transaction. £1 per transaction may not sound like a lot but it adds up over time and with over 1m customers I imagine PayPoint is making a lot of money with this setup. Also, with Monzo my lifting limit is only £400/day whereas I could walk in to a physical branch and lift more if I wanted. I know it sounds like a simple thing but many people just like having a brick and mortar branch they can walk in to speak to people face to face. Sitting down and speaking to a Mortgage Adviser for example.

I’ve been on the Monzo forums and the overdraft and loans they’re offering are just being rolled out. Only a limited number of testers are getting to use this feature currently. They’re playing catch up to existing banks.

I appreciate that Monzo has 1.3m users but that’s dwarfed by the number of customers currently at the legacy banks. Lloyds have over 30m customers in the UK, 13m of which use their online banking applications, 9m via mobile devices. I would also say that legacy banks copying all Monzo’s features is a very big deal as that’s what separates it from the banks we already have.

Anyways coming back to my original point, I thought Monzo could copyright aspects of what they were doing so was very surprised so see the introduction of Pots elsewher. If Monzo can’t copyright their work they’re innovating on behalf of every other bank in the UK.


(Kenny Grant) #134

Branches are a massive liability (rent, rates, retail staff). This is monzo’s strongest advantage and will allow them to expand much quicker with low cost.

Re branches being useful - I haven’t deposited money in a bank for over a decade. Habits change and cash is becoming less and less relevant. Monzo probably view the current solution as a stopgap till no-one cares about cash.

Re features being copied, this is par for the course and will continue, but that’s to be expected. Monzo will just come out with new features like paying with a link, and if others are always playing catch up, why not go with the original. The same can be said of freetrade or any other startup - when incumbents notice they’ll try to copy ideas but they can’t copy low overheads and a smaller, nimbler org.

I think Monzo’s biggest challenge right now is growth, not legacy banks. If they get more customers their low overheads will become more apparent and network effects will make it easier to grow more.


(Chris) #135

I’m fairly certain Tom has said something along the lines of “Monzo will have succeeded if the legacy banks copy us”.

If he hasn’t, then he should :joy:


#136

Tom also has the following analogy:

Banks can look at us and absolutely are looking at us and copying features. Barclays launched ‘freeze your card’ very recently, which is fine. There is a saying in ice hockey: ‘You’ve got to skate where the puck is going’. If you skate at the puck, it will have moved so far ahead by the time you get there that you’ll have missed it. Banks are looking at us. We are the puck.

He’s mentioned it multiple times but this is from here

Wouldn’t think he’s at all bothered


#137

For those of us who continue to use legacy banks, it’s good news that the likes of Monzo spurs them to make improvements and provide new services! :smile:


(Jim) #138

I use Santander for my legacy banking requirements and Monzo for everyday stuff. Not even bothered to install the Santander app as I just assume it’s poor. If Monzo can snap other banks into action that can only be good all round.


#139

#140

That was an interesting read :+1: