Why Monzo will blow Atom out of the water
Atom is just “UX-ing” banking. Monzo is re-imagining it.
Strong personal opinions here — but I believe there are important lessons from the comparison.
(Edited in March 2017 to change Mondo to Monzo, surprisingly many of the points still stand from when I wrote this in April 2016)
Today at Money2020 I saw Tom Blomfield from Mondo and Mark Mullen from Atom share a stage and the difference was stark. They followed on from a session led by Duena Blomstrom where the key take away was:
You can’t “UX” an existing product, you need to be able to completely re-imagine it. Stop making banking better. Use banking to make people’s lives better
I think Atom is just “UX-ing” banking. Monzo is re-imagining it. Heres why:
Core Features
Atom: Login with voice / face. Predicted future interest.
Monzo: One tap to freeze your card. Instantaneous push notification for transactions. Alert when forgot to checkout on the tube with automated refund request.
Monzo is solving actual problems for me. I instantly know the effect on my balance from my last transaction. I have peace of mind that if I ever lose my card, I can cancel it instantly. It solves a common problem with contactless travel in London. Atom on the other hand isn’t solving any problems for me — it just looks like a prettier version of my current banking app. I want to use my banking app when I’m out and about — logging in via face or voice makes that harder not easier!
Delightful
Atom: 3D interface, customised colour schemes and logos.
Monzo: Pulls in logos and location for merchants, geolocation to track when you’re on a foreign trip and tell you your exchange rate.
Both banks want to delight their users, however the approach is radically different. Contextual information and enriched data makes the Monzo app a delight, not custom colours and 3d animation. Fancy interfaces impress investors and industry insiders but rarely excite end-users.
Support
Atom: Button to call support team.
Monzo: In app chat through Intercom — replies within minutes, sometimes from the CEO.
The world is fast moving to an async communication model. People text / message each other more than they phone. I applaud Atom in making it as easy as possible to phone and growing a great team to answer those calls. But again this is an iterative improvement to existing banks, NOT the “future of banking”. Monzo gives support like Buffer or InVision, it works so much better.
API
Atom: Unknown. Will they even have one?
Monzo: API first. API docs published before Alpha. Developer sandbox — devs can play with their own accounts with zero approval or friction.
This API first philosophy means that Monzo has already integrated with Uber & TFL. It means that hundreds of developers are building integrations and an engaged ecosystem is growing around the bank. It’s a different way of thinking about growing a business. Theoretically someone could build a better Monzo app than Monzo — that possibility scares traditional business models that are built on lock-in.
Core Banking Technology
Atom: Outsourced to http://www.fisglobal.com/
Monzo: Built from scratch. Golang based micro-services architecture.
Monzo have been very brave in their approach. It’s a large undertaking to build your own core banking tech, but currently I think it is essential in order to re-imagine the whole experience. If there was a service based “plug and play” AWS like offering for banking then I don’t think Monzo would have to build their own. Currently there isn’t.
Fancy UI aside, the fact that Atom’s core infrastructure is an outsourced monolith will severely impede their agility.
Marketing:
Atom: Traditional approach.
Monzo: Word of mouth. Viral. Fastest crowd-fund ever. £0.45 cost of acquisition per customer (compared to £300+ for traditional banks).
Monzo have managed to cultivate an army of early-adopter evangelists. This is not by chance. They are developing in the open, cleverly using interactive waiting lists, and using twitter well.
“The way Monzo has built anticipation is sublime. There will be case studies written about it in the future I’m sure.” Stevie Graham
Monzo are using this wave of publicity for more than just marketing. They are recruiting new staff via twitter and booking in usability sessions. Atom are also using twitter, but the engagement just isn’t there.
Disrupting finance shouldn’t be that difficult. All it takes is a ruthless focus on solving customers problems rather than selling them a product.
Walking around Money2020 this week I’ve realised just how many opportunities for start-ups there are. There is a lot of incremental innovation, but I believe Monzo is showing us the need for more re-imagining. It takes a lot of boldness, but comes with a potentially huge reward.
I’ll close with quotes from Mark and Tom
“I know its unfashionable but I believe in the value of banks, capital brings growth. I’m a banker, so shoot me.” Mark Mullen
“Bankers tell me what I’m doing isn’t banking. I don’t care about banking or financial products, we want to solve real problems.” Tom Blomfield
Both companies want to put the user first. Both want to provide an amazing user experience. Both claim to be the future of banking. Currently only one is ticking the box for me.
