We all know what it’s like when the month end is near, as the expression go’s I have too much month left at the end of the money.
Well the guys at Monzo the digital bank have decided that when it comes to getting access to your salary, their customers will be first in the que on pay day, or to be more accurate the day the before pay day.
Monzo current account customers will receive their salaries a day early under a new service from the app-only bank.
Salary payments will enter customers’ accounts at 4pm on the day before they would normally be received, Monzo said. The same applies for student loan instalments.
Monzo explained that the Bank Automated Clearing System (Bacs), which is used for most salary payments, can be sped up but most lenders choose not to do it.
The antiquated system normally takes three days to clear transactions.
But when a Bacs payment goes through, the receiving bank can see it on their system the day before it is due to clear.
Banks could choose to make the payment at this point as they can be confident that the money is on the way, but most don’t, Monzo said.
I think it’s fair to say that this will appeal to a large number of people who live payday to payday, and it will certainly put pressure on the old high street names to come up with new innovative ways to retain their customers. Monzo are really leading the way when it comes to new age banking with many features available in their banking app which aren’t yet available from the big names.
Download the Monzo App Here