Companies active in the finance and fintech industry have to explore unique opportunities. Monzo is looking to bring back its pair-for-account. The previous iteration of this project hasn’t gone over well with customers.
A Paid-for Account
In the financial sector, customers pay to use a bank account. Charges are in place for managing the account, sending out paper bank statements, and general “maintenance”. Combined with negative deposit rates, using a regular bank account has become very costly for the average consumer.
Monzo wants to try something else entirely. Not too long ago, the fintech bank introduced a paid-for account. It would effectively give users extra benefits in exchange for a fee. The previous iteration included travel and home insurance, airport lounge access, and higher ATM allowances. It is a product that can be of great value to the right customers.
Unfortunately, Monzo withdrew this offering in September of 2019. Customer feedback was anything but stellar. Customers were eager to check it out, but ultimately didn’t find it worth the price of admission. That is not abnormal, as the offering may have been ahead of its time.
Relaunching this service in early 2020 makes some sense. Monzo has a lot more customers compared to a few months ago. It has a lot more attention now. That makes it easier to launch unique services and products like these.
Facing a lot of Backlash
One thing Monzo has to keep tabs on is the negative feedback the company is getting across the board. Despite noting customer growth, the negative feedback is increasing as well. Several customers still can’t access their account for no apparent reason. The Facebook group “Monzo stole our money” is still very active to this day.
Making matters worse is the lack of profitability. It is not uncommon for challenger banks to face an uphill battle early on. In 2018, the bank had a net loss of £47.2 million.
Turning that deficit into a profit will not come easy. The company hopes that premium services like the paid-for account will help them achieve this goal.