The question for me is: Are the challengers a threat to the established banks?
Alpha Beta
1

Thanks so much for your comments. Just a few thoughts in reply.

  1. The app-based banks are planning to offer much more than card payment tracking. You can take a look at Monzo’s Trello board and community forum for more details. Ditto Starling. Acting as a marketplace for other financial services providers is just one area.
  2. Re ATM voting, most marketers would probably take a 1%+ engagement rate as a big win for a pretty dry topic.
  3. I can’t speak for Starling but Monzo’s prepaid card relies on a third-party called Wirecard. Once customers are migrated to Monzo’s current account, built on its own systems, it claims reliability will improve. I’m on the current account pilot and I have had zero payments declined. Big banks are not immune from outages either e.g. NatWest’s IT meltdown in 2012.
  4. I’m sure that joint accounts and executors will be dealt with by Monzo and Starling in due course. You could go on their forums and most likely get an answer on this today.
  5. I don’t see why Monzo will suffer more bad debt than any other bank. Overdrafts will be subject to status, so it’s really down to how strict it makes its lending criteria. It is possible to breach your overdraft limit e.g. with delayed TfL payments, but once this happens your account is effectively frozen.

Thanks again for taking the time to read and comment.

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