My new business bank

Last year I wrote about the lack of innovation in business banking and someone must have been listening! Last week my Tide Business MasterCard arrived.

Tide is technically a prepaid account but operates like a business bank account with a sort code, account number, direct debits, Business MasterCard and many other trappings of business banking (you won’t get an overdraft because it’s a prepaid account). The big difference is that the whole customer experience is app centric. From sign up to daily use, the app is how you manage the account.

Sign up was easy via the iOS app with identity verification based on taking a photo of driving licence or passport plus background electronic checks. Charges are reasonable; there are no monthly fees, MasterCard transactions are free and other transactions incur small charges.

MasterCard transactions appear instantly in the app with none of the delays associated with legacy bank apps. All transactions are categorised and card transactions can have comments and attachments added to them. I would like to see more transaction metadata, along the lines of Monzo.

The app has a tab called Toolbox which so far contains two interesting features you don’t see in a legacy bank app – invoicing and API access. Invoicing lets you create simple invoices for billing your customers and API access is for developers to add third party apps. The Toolbox tab will be one to watch to see what else appears here.

Another nice feature is no FX loading or surcharging on foreign currency transactions (similar to Monzo) which makes card transactions in other currencies much cheaper than those with the usual suspects.

Tide is still in beta so there are a few rough edges – I’ve had a couple of card validation problems and card transactions coded as continuous payment authority are not yet supported. However any problems are easily resolved via an instant messenger interface in the app. Overall it’s a great start and another reason for the legacy banks to be very afraid of the future.

I won’t be closing my legacy business bank account yet but the day of reckoning for legacy banks is getting ever closer.

Originally published on DisruptiveViews.

A week with Mondo

Last week the nice people at Mondo signed me up for the alpha of their new payments product. Mondo is one of the new generation of companies applying for UK banking licences who aim to fundamentally change the way we bank.

Mondo iconWhat makes Mondo different from other ‘digital challengers’ is that rather that wait for their banking licence application to be approved and then launch a product on an unsuspecting public, they have launched their ‘banking’ app in parallel with their licence application. Mondo wants to use customer feedback to help build and evolve their product before they formally launch as a bank. Mondo has done this by launching a prepaid account with a contactless MasterCard via the prepaid card issuer Wirecard Card Solutions under Wirecard’s emoney licence. When Mondo’s banking licence is approved and they become a ‘real’ bank they will provide their own bank accounts and issue their own cards.

Mondo notificationMondo’s aim is to put consumers in control of their spending using the power of their iPhone (Android et al is coming later). All transactions appear instantly in the app whether it’s a debit card top up to add funds to the Mondo account, an ATM cash withdrawal, a contactless transaction, a chip and PIN transaction or an online transaction. Transaction data includes merchant details, geolocation details, plus historical spend data for that merchant. There’s also the option to add extra data including a note and a copy of the receipt to each transaction.

Mondo cardAlthough the app is currently in alpha it works amazingly well. As soon as I make a purchase I receive a push notification on my iPhone or Apple Watch with confirmation of the transaction details. Over the past few days as I’ve used the app, additional features have been unlocked – a nice way to introduce the user to more functionality. Despite being an early release the app is considerably more engaging than legacy bank apps. A neat feature is the ability to ‘freeze’ my card temporarily so it can’t be used; great for people who mislay their cards and then find them again. When I freeze my card the app image of the card is covered in ice and the button underneath offers to defrost it!

Mondo defrostSomething else that appeals to me is the ability to add funds to my account using Apple Pay, making topping up friction free. If you haven’t yet paid in app using Apple Pay, you really haven’t seen the future!

Mondo is definitely one to watch and if they keep up their momentum the legacy players need to be looking over their collective shoulders; it’s not looking good for them!

Originally published on Disruptive Views.

Apple Watch six months on

Apple WatchRecently I realised I’d been wearing my Apple Watch for six months and it gave me cause to reflect on how it had fitted into my daily routine. When my Apple Watch arrived six months ago I hadn’t worn a watch for several years; I’d got into the habit of checking my iPhone for the time and using my Fitbit for fitness tracking.

However as phones get bigger it’s increasingly inconvenient to check the time on a phone so it’s back to a watch. The Apple Watch is a controversial gadget with both supporters and detractors. For me it’s the obvious extension to the iPhone and more useful than I expected.

So what makes the Apple Watch so useful?

As someone who (curiously) finds payments interesting Apple Pay is of course my favourite app! Whilst Apple Pay adoption is apparently low I still believe its time will come. Changing consumer behaviour is usually a slow burn and payments is no exception. Whilst using Apple Pay can be a bit hit and miss, especially with Amex cards or older POS terminals, it’s a big improvement on a contactless card, both from a security and a transaction information perspective.

Apart from Apple Pay, of the standard Apple Watch apps the most useful ones to me are Maps, Messages, Activity and Apple Pay. Maps is a top app; pull up directions on your iPhone and then follow them on your Watch. More secure, more convenient.

However there’s some great innovation tucked away in third party apps:

Using my Apple Watch to get cash from an ATM without a card is a neat trick thanks to NatWest Get Cash. The NatWest app generates a code that can be used to get cash from any NatWest ATM.

Tapping my Watch to unlock my Mac using MacID is a timesaver over typing in a long password.

Weather app Dark Sky makes use of a complication to warn you when rain is imminent.

Day One lets you note your location with a tap so you can add a geolocated note later.

It’s still early days for the Apple Watch but already it’s apparent how it will contribute to the impact of wearables on consumer behaviour.