Sep 9, 2020

Monzo introduces fees to affect a minority of customers

Monzo
Banking
Fintech
Evelyn Howat
2 min
Monzo
Digital bank Monzo recently notified customers that two new fees will be introduced, but they won’t be affecting everyone...

Monzo Bank recently announced on its blog that it will be introducing two new fees but according to the challenger bank, 79% of customers will not be affected by the changes at all. From October 31st, a 3% fee will be introduced on cash withdrawals of over £250 in 30 days in the UK and European Economic Area. This is alongside a new £5 fee for debit card replacements in the UK, however, if your card is stolen, you are a victim of fraud or your card expires you won’t have to pay the charge.

Monzo has been transparent about their reasoning of introducing these fees, explaining on its blog that approximately 20% of customers make up more than 80% of its cash machine costs. On average, Monzo customers only withdraw £36 a month, meaning most people wouldn’t have been impacted by the new costs anyway. The company hopes the fee will encourage customers to withdraw cash with their other bank or contribute to the costs involved.

Similar reasoning is behind the replacement card fees; Monzo says that 90% of users have never ordered a replacement card, and 99% have never ordered more than two. But again, this small 1% of customers that order more than one card each year total 35% of its total card replacement costs. If you have been a victim of fraud, your card is stolen or of course, your card expires, you are not liable for the fee.

Despite the fact that these fees don’t reply to most people anyway, Monzo has made exceptions for those who rely on them more and users who hold a Plus account. Those who are classified as ‘relying on Monzo’ are:

  • Paying £500 or more every 35 days or have one active direct debit
  • Getting a Department for Work and Pensions or Department for Communities’ payment (like Universal Credit or a state pension) into your account every 35 days
  • Getting your student loan paid into your account every 8 months
  • Having a Joint Account with someone who does one of the above

Below is a summary of the changes (courtesy of Monzo):

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Jun 21, 2021

Last chance: Register for AWS’ webinar on modern banking now

AWS
Goldmansachs
Banking
Payments
1 min
AWS’ webinar, also featuring Goldman Sachs, promises to provide the banking and payments sectors with the strategies they need for modernisation

How to modernise transaction banking and payments through AWS Marketplace’ will be taking place on 22 June 2021 at 10am BST. This is the last opportunity to sign up for what is sure to be an invaluable webinar event.

Esther F. Mendez, Worldwide Banking and Payments Partner Development Lead at AWS; and Angelos Anastasiou, Chief Solutions Architect, Transaction Banking at Goldman Sachs, will discuss:

  • Leveraging automation tech and data to drive business growth
  • Meeting compliance mandates and creating better standards for governance and security
  • How to utilise AWS Marketplace’s third-party solutions to meet customer expectations, even as they continually change 

There’s still time to find out more about:

Have you registered for AWS’ webinar? If not, sign up now.

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