A New Banking App Challenges Monzo
Viola Black is a new banking app that just launched in July. After being tested for months, the new app functions like a prepaid card with multi-currency accounts and offers services, which includes more features than a basic account. They launched an advertising campaign to pitch themselves against Monzo. While the company has been quiet since, Viola’s statements suggest that they’ve been focusing on app security and have taken extra time to test it.
What Viola Offers
Viola Black is not a bank, it is a prepaid card service that must be loaded to use it. The card will come with an account number and is managed through the app, where customers can transfer money into the account. The company is promoting the multiple currencies that the app uses, which offers capability of making card payments abroad with fees.
These services come with fees. Even the basic service is not free. Viola Black is charging a minimum of £4 per month. There are extra charges that come with the app, including additional fees related to cash withdrawals, foreign ATM withdrawals, and inactivity. If you don’t use the card for four months, you may receive fees or even lose the account.
Since Viola doesn’t operate as a traditional bank account, there are no overdraft charges because you simply can’t overdraft. You can’t set up direct debit payments or standing orders. Deposits to the prepaid card are not protected by the Financial Services Compensation Scheme (FSCS) because they aren’t technically a bank. Instead your money is held in a protected account by Viola to ensure it is protected even if Viola collapses. This has happened to other companies like Loot when they went into administration earlier this year.
What Monzo Offers
Viola began their company by marketing against Monzo. They claim to be a modern money management tool that is predicated on their spending and budgeting tools. Other banking apps like Monzo offer this, which has expanded massively in the last year and became the first digital challenger to offer ISAs. Also beginning as a prepaid card provider, Monzo has evolved into a bank.
In addition, Monzo offers full UK accounts for free according to MoneyPug, which is known as a place to compare prepaid cards. It offers a free app, a coral MasterCard, free payments domestically and abroad, charge-free ATM withdrawals, instant notification every time you use card, and more. There are drawbacks, however. Foreign ATM withdrawals over £200 a month are charged a fee. There is also no multi-currency option.
Viola Drawbacks
Viola Black is not a bank, so there is no Financial Services Compensation Scheme (FSCS) protection on deposits. There is a monthly fee and various other fees other than the monthly charge. No savings options or interest paid into your account. There are also ATM fees. They charge for rejected payments and fees for not using the card.
The Market for Mobile Banking
As the latest company in the market for mobile bank, Viola offers similar services but some particular perks. With many smaller apps hoping to get into the account. Viola is like the company Revolut, a digital prepaid account targeted at the foreign exchange market.
Viola hopes to fill this niche in the market. Other than this multi-currency advantage, there are not that many features different from their competitors. It’s worth noting that the streamlined nature of digital banking accounts and apps that might not be around in the future.
While the market is saturated, Viola Black offers good advantages for their customers and multiple currencies for people who travel for business. The budgeting feature on the app will help people allocate funds. It allows you to send money instantly. There are many advantages, but no one can know for sure who will come out on top of the industry.
It is easy for challenger banks to cut ties with UK customers and move elsewhere, which will deter customers. The market is competitive, with a lot of companies getting in on it. Viola Black is the latest, and they are feeling positive about their position in the market. Whether they will be successful will be determined by their services.
