Monzo Bank Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Monzo Bank Case Solution

Environmental Analysis

Many banks around the world are resolving their energy management issues and many banks have offered consumers the option of billing online and paperless transactions. Only digital banking has further reduced the use of paper, which is a positive factor that has put tremendous pressure over other companies to make positive impacts over the environment. In addition, online banking has also reduced the banking demand, which provides less carbon releases. This might be an important factor for both of the companies in promoting and advertising, as it is a very significant issue that has become the focus of many consumers. The survey shows that 88 percent of customers expect productions to assist them in order to improve their green environment.

Legal Analysis

Because of the political unrest in the United Kingdom and the probable impact of the December’s general selections in the UK; the current risk of changes in laws and regulations might be higher. Finally, due to Brexit; all sectors, including banking, are very sensitive to the regulatory changes. The new regulations could seriously affect the operation of Monzo and Revolut, which could lead the companies towards facing complex legal issues.

After anti-money laundering claims, fraudulent bookkeeping and a toxic management culture; a number of fast-growing digital banking start-ups have also come under intense scrutiny, recently. This means that they would appear to be under strict control over the issues involving similar companies. In addition, Monzo will only be able to make current accounts available once the UK’s bank’s authorization restrictions gets been lifted, so if these restrictions are reinstated, the company could face serious problems, which might make its consumers unhappy.

SWOT Analysis of Monzo Bank

Strength of Monzo Bank

Monzo is praised for providing an easily usable application. This is especially important because some users are new to the application and might have not used any online banking app before. If a corporation’s application is unclear or difficult to use; it can be offensive to its consumers, especially if consumers are the only way to use the facilities provided by Monzo. Monzo’s consumers-might also opt for instant consumption notifications, which means they can easily view their consumption, which can help them in controlling the fraud immediately, as they would be able to see the notifications and take an immediate action. In addition to this, Monzo’s strong and smart budgeting system-allow its customers to control their spending and save money.

The company offers useful security options to ensure the safety of its consumers, such as:l loss of money via stolen cards. This is key because the research shows that security is a significant barrier when consumers use new technologies that provide banking services. Monzo has recently launched an energy conversion scheme, which claims that it can save its consumers’ money with an inexpensive transaction to pay the electricity and the gas bills. This can further inspire the consumers to use it as it is a very unique and very convenient for consumers

This is a business advantage, because convenience is a fundamental factor that consumers look for in digital banking. In addition to this, the company is ranked among the best ethical checking accounts, attracting even more ethical consumers. Moreover, Monzo’s consumers can benefit from FSCS deposit protection, as it provides a greater security for their money and helps them in keeping their money safe.

Monzo Bank, formerly known as Monzo, is a new UK-based bank. According to Monzo, all twenty clients use Monzo. Top management and the board of directors see this as a key metric in measuring Monzo’s strategic performance. Initially, when Banco Monzo was formed; it took two years to reach 1 million customers in October 2018. In September 2019, Monzo registered 3 million customers, an increase of 200% as compared to the previous year. Monzo has worked tirelessly to provide its customers with all the banking products in a single application.

By creating partnerships, Monzo has expanded its market and number of users. It has worked with leading brands in various fields to make the travel process, international shipping and identity verification more convenient. Monzo works with Transfer Wise to facilitate international payments, transfers and currency conversions, and the prices are lower than the traditional banks. Monzo has partnered with AXA to provide travel insurance to Monzo Plus customers, at very low monthly charges. This includes lost valuables, medical bills, travel cancellations, etc. Families can also use the facilities at an extremely lower cost. Similarly, Monzo is partnering with Jumio’s identity verification solutions provider to simplify the boarding process for its customers. Jumio simplifies the process and always follows the anti-money laundering and KYC guidelines.

Weaknesses of Monzo Bank

Perhaps Monzo’s main weakness is that consumers continue to attach great importance to the human interaction when they want to contact the bank. The consumers who have high trust issues, always prefer to visit banks personally or to have meetings with the banks’ staff, because as per the human’s psychological instincts; they tend to build trust over services or products based on how they are represented to them. Humans tend to make consumer relations based on the communication skills of the seller. This factor might cause Monzo to have a declined consumer base, as it does not provide any human-to-human (communicational) facilities or services, which tends to decrease its convincing power.

Additionally, the consumers who want to start a banking business might be scared as they may misinterpret this and think the business will shut down. In addition, the security breachresulted in the customer’s PINS being copied into files that were accessible to the engineers, despite of encryption. This can negatively affect the reputation of the business and can cause consumers to lose their trust over the online banking. . A security-based approach to a given issue can cause even more problems, because when consumers apply new technologies in the banking matters, security concerns are a serious barrier. This means that those who want to use digital banking,might change their mind due to this current issue being faced in the digital banking.

Opportunities of Monzo Bank

Studies have shown that 40 percentindividual between the ages of 18 and 27 choose banking applications. This suggests that Monzo should first target people in this age group, as they seem to have a potential interest in the British financial technology company Mimiro. Proper deployment of artificial intelligence can bring great benefits to the business, including: an improved safety, lower costs and greater consumer satisfaction....................

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