The Parasite As Host?

I has a DM from Lee at the weekend, after we’d caught up last week for the first time in ages: “…loved your comment re Monzo as an incumbent – smart, in an ‘of course’ way. Might make a nice blog* post…”. So here it is.

I’d mentioned the poster and campaign below, and the weirdness of seeing new financial startups treat Monzo as an incumbent.

Yes, Monzo now have over a million users. Yes, they’re prepping for a US launch. Yes, they’ve raised £85 million to help fund new product development.

But are they the banking incumbent? No, not really.

Perhaps, though, they’re now the incumbent service for a thin layer of people who want banking no thicker than the thin glass layer atop a smartphone, a business that skips along the top edge of the pace layers, feeding on a deeper system below.

They feed off the slower moving layers below to survive; yes, the parasite metaphor has a metallic tang in the mouth, and probably doesn’t reflect intentions, but as a description of how they’ve captured the mobilista section that the market without really contributing to the lower layers is arguably accurate.

And now, we see the emergence of others who try to thrive in the whole they’ve burrowed in the host organism. One question emerges though about the campaign; who is it for?

It’s surely not for people with a Monzo card already, as getting people to switch bank accounts remains notoriously hard work, so why go after a small subset of a market. Viola Black is not going to feed off Monzo in the way that Monzo feeds off the wider system.

And it surely can’t be for those on the verge of making a decision to switch to Monzo, as any quick search on comparisons of the two would bring back unfavourable results for Viola Black; it is just a pre-pay credit card, as Monzo used to be.

It’s perhaps more likely that it is just a market statement, for current investors and potential future ones; ‘look, we’re in this market, associate us with these other players’.

In startup land, you don’t need to live off a real user base, sometimes the fumes of hype will provide enough sustenance for months or years. It’s like vaping success.


*It’s 2019, so let’s try more blogging, as per this:

Short fast blogging, rather than having an existential crisis when trying to fashion a passable Medium post. Why is it every Medium post ends up as a Large?