I’m not surprised if the average Starling balance is higher than Monzo’s, but I am that its total deposits are higher.
Nicely done, Starling
Based on my personal usage, I can sort of understand how Starling’s total deposits could be higher.
I have both Starling and Monzo, with each one having a specific purpose.
Neither are being used as my main account, as I keep my Nationwide Flex account for salary and bills.
(member 30+ years, and still get some of the now discontinued benefits)
Monzo is (currently, I am considering changing) my everyday spending account.
I transfer a set amount every week into there for day to day expenses, and there is usually a balance of around £300-£400 in there.
Starling was originally opened just to get around the overseas spending fees, but soon became our holiday account.
All money saved for paying for our holidays, plus the majority of our travel spending money is deposited in this account.
The average balance in Starling is around 10 times that of Monzo
Doesn’t take many customers going something similar before Starlings customer deposits far outstrip those of Monzo
I think the article is missing the story here in the statistics. Only 4 banks made any real gains in customer numbers:
Nationwide: 26k - the most impressive, there’s some referral incentives but this has to be word of mouth, I guess most of these gains are from TV advertising?
Monzo: 22k - phenomenal performance considering limited advertising or switch incentives
HSBC: 17k - driven by £175 switch incentive
Starling: 7k - this is only 500 up on the previous quarter, which is not great considering this period covers their expensive TV advertising.
But perhaps CASS is irrelevant, if Starling has 1m customers and only 25k CASS switchers a year. Maybe they’re getting young people’s first accounts, or people are just using them as a travel account etc. Found it interesting that someone on this forum was going to use Curve as a travel card (even with its various fees and issues) rather than a free Starling account - the wider public may be even less keen on ‘experimenting’ with a new bank.
I actually thing the most important figure is always how many leave a bank, not how many join, because the banks with a good incentive in a reporting period do well, so the figure isn’t about whether people are choosing a bank, if you like your bank you don’t Cass you normally just open another account, so the leaving figure is important
Probably why there’s management reshuffle.
Wunderkind effect wearing off. Orange card not enough to boost KPIs. Time for re-focus on profits.