Monzo takes the axe to Monzo Plus team; goes back to the drawing board

Monzo takes the axe to Monzo Plus team; goes back to the drawing board

UK digital bank Monzo has disbanded the entire team responsible for its subscription-based Monzo Plus offering after receiving a wash of negative feedback from customers who signed up for the service.

The premium service, which went live five months ago, was a key plank in Monzo's attempts to drum up additional revenue as it strives to break even. Users were charged up to £13 per month for a range of packaged service bundles like additional ATM withdrawal allowances, travel insurance, airport lounge access, Monzo merchandise and prize draws.

Tom Davis, product marketing manager at Monzo announced the news of the service suspension on the bank's community chatboard, stating: "For a number of reasons, things just haven’t gone the way they should have with Monzo Plus so far this year. And ultimately it’s you, our early adopters, who felt that frustration the most.

"We’re going back to basics and starting from the beginning. While we are fortunate to see our customer base growing faster than ever, it’s important we take steps now to ensure we’re moving towards becoming a sustainable business. One of our biggest opportunities for this is a paid subscription that unlocks more value for our customers and gives us steady revenue in return."

Monzo is bringing in an entirely new "smaller and more nimble" team to take the project forward, he says, and inviting more regular feedback on its plans from users.

"We want to make sure you aren’t stuck with an offering that doesn’t work for you," says Davis. "If you have an existing subscription and want to cancel, you can at any time by contacting customer support in the app."

Davis confirms that additional offers promised to Monzo Plus Supporter subscribers will now be withdrawn and refunds plus interest paid back to customers who signed up.

"I know this is frustrating, but it was a tough decision we had to make so our small team can focus on delivering a paid offering you can really be proud of," he says. "So forget what you know about Monzo Plus, or what we’ve told you. Everything is on the table."

Comments: (2)

Ian Ogilvie
Ian Ogilvie - Ogilvie Advisory - Sevenoaks 25 September, 2019, 11:28Be the first to give this comment the thumbs up 0 likes

This seems like the same poor journey traveled by so many of the tradtional banks with package banking - "same old; same old".  Monzo have a chance to rectfiy this.  Can they?  Will they?  Attracting accounts in banking is easy; creating sustainable profitability is far tougher.

Brian Weakliam
Brian Weakliam - Bankhawk - Dublin 25 September, 2019, 14:01Be the first to give this comment the thumbs up 0 likes

I think low/negative interest rates makes day to day banking a much less compelling business proposition.