Monzo - supposedly one of the app-only banks of the future, has apologised to its customers for issues with its online bank transfers. Bank transfers are currently either being delayed or failing, could this be a sign that app only banks are not the future after all?
What has happened?
Being a Monzo customer I sent a bank transfer to my Monzo account this morning and when it didn't arrive I wondered what had happened. Monzo has since released a statement on its app advising that 'approximately 25% of inbound bank transfers are currently failing and the remainder are being delayed.'
In the event that the transfer fails, the money will not leave the account it is being sent from. If the payment is delayed (and the account balance has decreased), then the payment will arrive once the problem has been fixed.
Outbound transfers from a Monzo account are currently working, but are being delayed by a few minutes.
What is Monzo saying?
We're working with our provider that connects us to the Faster Payments system. They've identified the problem and are working on a fix, but we don't know exactly when this will be.
We're really sorry for the trouble this is causing, and will do all we can to make sure no-one is left out of pocket.
I have a Monzo account - what should I do?
Until the problem is resolved there is not a lot you can do. Monzo has said that it is working quickly to resolve the issue and will ensure that 'no-one is left out of pocket' so it may be worth keeping any receipts or emails if you have late payment fees/charges as a result.
As a self-confessed lover of Monzo, the latest bank transfer problems have made me a little more apprehensive and have confirmed to me that perhaps now isn't the right time to make the full switch to having my salary paid into an app-only bank.
Monzo and other app-only banks such as Starling Bank have made significant strides in acquiring new customers, as reported in the latest figures by the Current Account Switching Service (CASS) and in our article 'Revealed - best accounts to switch to'. However, the latest technical issues demonstrate that there is still work to be done when it comes to the technology that the 'banks of the future' are using and to prevent similar situations arising in the future.