Challenger account holders seek budgeting assistance

By Rebekah Tunstead | 28 November 2018

Challenger bank account holders are looking elsewhere for budgeting assistance according to Steve Tigar, CEO of the free online budgeting app, Money Dashboard.

Speaking at a conference this week in central London, Tigar said Money Dashboards most engaged users of the budgeting service are Starling and Monzo account holders.

 “If you think about Monzo’s spending analytics if you have a Monzo account why would you use Money Dashboard? I think the reason for that is that you only have to look at the balance sheet and realise that the average deposit at Monzo and Starling is really quite low,” said Tigar.

“What we are finding is that consumers keep their high yielding current account, they keep their credit card that is getting them loads of air miles when they spend, but they also like the idea of having a Monzo account for other types of spending. When you’ve got a Money Dashboard proposition that aggregates all of that up, and then provides a balance, and does the categorisation across all of their spending accounts, there is really utility.

“That is why we see them as quite a big enabler for an aggregator. The chat from curve earlier in the conference was quite interesting, they talked about the fragmentation of banking and then the rebundling of banking. They are doing that with all of your credit cards in one place, we are doing it in a slightly different way, which is all of your financial life in one place.”

As Money Dashboard is a free app for the consumer, its revenue model was of particular interest for the audience during a subsequent Q&A.

“The way that we make our money is that we aggregate and anonymize the 400 million or so bank transactions that we have, and we create real time market research on thing like Tesco’s real time revenue performance. We can see before the markets know, basically what Tesco’s quarterly earnings are going to be, or we can see which of the four big supermarkets are doing the best and holding on to customers.

“Just to be clear that is not customers personal data which we would never sell, this is anonymized data, that when pulled together is really quite powerful.”

Tigar pointed to the number of TPP entities which are coming to market in the near future thanks to Open Banking.

“There are almost 200 TPPs that are waiting for their licences, many companies like Money Dashboard have got their licence but there are many more to come.”

Customer understanding of the liability model of Open Banking will be crucial for TPP uptake, said Tigar.

“I think the main reasons is if one of the key barriers for companies like Money Dashboard has been trust and specifically making the customer whole, then the one real gift of Open Banking has been the clarity and liability model.

“Giving customers the confidence and the clarity that if something does go wrong they go to their bank to be made whole, and the bank suspects the third party of being at fault then they pursue the third party, which I think is really important, and will be a critical factor in consumers adopting TPP type services.

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