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What Monzo is planning next

11 pointsby mindracerabout 4 years ago

2 comments

PinkPigeonabout 4 years ago
&quot;Long says she doesn’t see how Monzo can become profitable without a “radical change” to its business model.&quot;<p>In the article they allude to Monzo not doing much (enough?) lending, such as offering mortgages or credit cards.<p>This is a very interesting point about what a bank is supposed to be. Starting to sound like that&#x27;s all a bank can do to become profitable (this is obviously not true, data-mining customer purchasing behaviour has to be a really strong option as well), but that&#x27;s not my main point. The main point is that Monzo, at least initially, lead with an extremely attractive, mobile-focused, well-designed online experience. They had the &#x27;hip&#x27;-factor going for them (I vividly remember, while working at various advertising agencies, how suddenly everyone had the bright-neon-orange debit cards).<p>Later they also had a reputation for being crypto-friendly, which made a lot of my techie friends get an account with them, after the horror-stories of other banks just closing people&#x27;s accounts for trading crypto.<p>But it would appear that customer numbers and a modern attitude alone are not enough to make a bank profitable.<p>Some more random tidbits: Here is a talk on Go microservices architecture by Matt Heath <a href="https:&#x2F;&#x2F;www.youtube.com&#x2F;watch?v=WiCru2zIWWs" rel="nofollow">https:&#x2F;&#x2F;www.youtube.com&#x2F;watch?v=WiCru2zIWWs</a><p>I think this may have been hotly debated on HN as well. It seems they are running well over 1,000 Go-backed microservices these days. This is just staggering. My little project is at a grand total of 4, and I find I spend enough time on interop, to have almost considered monolithing the whole thing again.<p>And a last one, for a chuckle, here&#x27;s Halifax&#x27;s (then) design agency using Monzo assets in a Halifax design deck, presumably because Halifax wanted to modernise their offering and &#x27;be like Monzo&#x27;: <a href="https:&#x2F;&#x2F;www.thedrum.com&#x2F;news&#x2F;2019&#x2F;04&#x2F;15&#x2F;monzo-clashes-with-halifax-bank-over-embarrassing-app-design-likeness" rel="nofollow">https:&#x2F;&#x2F;www.thedrum.com&#x2F;news&#x2F;2019&#x2F;04&#x2F;15&#x2F;monzo-clashes-with-h...</a>
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IshKebababout 4 years ago
It is rather baffling why they haven&#x27;t produced products that would traditionally make a ton of money, like a credit card or SIPP. I hope they succeed though. The traditional banking sector sucks.