So if Monzo or any other bank or building society goes bust, you won’t be left out of pocket. Reader ‘devastated’ by bank fraud, plus NatWest refuses to give back money taken by scammerYour email arrived within a week of an identical complaint from another Monzo customer, He was taken through the same steps as LB and persuaded to transfer £4,000 to a “safe” Monzo account while the fraud was investigated. When you buy something that costs between £100 and £30,000 on your credit card, the purchase is protected under section 75 of the Consumer Credit Act. “Because they can’t transform the oil tanker, they have a speedboat to go faster and engage with the competition,” explains Boden. Just 3 percent of cards in the US are contactless (tap to pay) according to a 2018 Monzo and Starling have also been able to take advantage of Apple Pay and Google Pay, so you can use an app and just your phone to manage your entire bank account and make purchases. The Financial Services Compensation Scheme (FSCS) is an independent fund set up by the government to help protect people’s money. Monzo was forced to scrap its free ATM withdrawals overseas, as the card became a popular way for Brits traveling across Europe to make transactions or withdraw foreign cash.Both of these mobile banks also have to convince UK consumers to move their entire bank account over. All of these features, and more, have led millions in Britain to now trust Monzo and Starling with their hard-earned cash. Just remember that this extra cover only lasts for up to six months! Originally operating through a mobile app and a prepaid debit card, in April 2017 its UK banking licence restrictions were lifted, enabling it to offer a deposit account. Protection on purchases. Monzo Bank Ltd is authorised by the Prudential Regulation Authority (PRA) and regulated by the regulated by the Financial Conduct Authority and the PRA. I still personally use a big bank as my main current account, despite the fact that Starling and Monzo are both protected by the UK’s Financial Services Compensation Scheme that covers you for up to £85,000 if they collapse.While the big UK banks have been slow to react to Monzo and Starling, they’re catching on. Cash is still widely used in the US, though, while UK consumers are more used to using a debit card for transactions regularly.Getting customers hooked to these cards is just one part of the complex banking puzzle, though. It was originally a prepaid card that you had to load funds onto, before transitioning to a full bank account. The bank, popular with generation Z and millennials, is part of the Financial Services Compensation Scheme, which offers protection on balances up to £85,000. That means up to £85,000 of the money in your account is protected, if anything should ever happen to Monzo.You can find out more about how your money’s protected on Monzo Bank Limited is a company registered in England and Wales (No. A similar service, Zelle, only launched back in 2017 in the US, and it’s a gap that has allowed Venmo and Square Cash to take off. She started her career at Lloyds Bank where she helped build CHAPS, Britain’s first real-time payments system. “In parallel, we will be applying for a US banking charter, and in time we hope to transition everyone onto our own license,” says Blomfield.Monzo is bringing its community spirit to the US, too. All rights reserved. If you have a big balance in your bank account temporarily because of a life event like inheriting money, being made redundant or selling your house, the FSCS will cover up to £1 million. With just word-of-mouth and very little advertising, these two banks are showing bigger British banks — and the US — how 21st century banking is really done.Both Starling and Monzo offer very similar cards and bank accounts that are quickly becoming popular with millennials across the UK — Monzo recently crossed 2 million customers and says it’s adding 200,000 more each month, and Starling has more than 550,000 customers. © 2020 Guardian News & Media Limited or its affiliated companies. Instead, at Monzo’s headquarters in London, employees’ dogs commingle with engineers, support staff, and other workers in the buzz of a startup environment you’d typically find in Silicon Valley.Mobile-only banks are a totally new approach to banking in the UK, with the ability to see real-time transactions as they happen, easily split bills with friends, and use cards overseas with no fees. level 1. Both banks live on your phone through apps on iOS and Android, with no brick-and-mortar locations or clerks at desks. "At Monzo we aim to educate our customers as much as possible about what to look out for and the risks involved.