Monzo launches investment feature

Tuesday 12 September 2023 15:35 CET | News

UK-based digital bank Monzo has launched an investment feature that allows customers to invest in funds managed by BlackRock

This comes as an addition to Monzo’s existing interest-yielding savings accounts, being the first investing solution of the company. The application process is straightforward, with customers being invited to a waiting list to access the product. After being verified, eligible users will be able to create an investment pot and learn about the product through a set of informational screens.

UK-based digital bank Monzo has launched an investment feature that allows customers to invest in funds managed by BlackRock.

Moreover, they will get to choose from three funds picked by BlackRock based on different risk levels. The choices include Careful, Balanced, and Adventurous, with the former being a low-risk, and low-return fund, the Balanced option being of medium risk and reward, and the latter having higher-risk allocations with larger potential returns. 

More about Monzo Investments

Officials from Monzo stated that currently, UK residents face many barriers when it comes to investing, and their company aims to eliminate them, including the widespread belief that investment cannot be affordable. In addition to the GBP 1 minimum investment amount, Monzo has embedded tools and knowledge features into their product, as well as personalised options, so that customers can easily start investing.

The investments pots feature will be included as an addition to Monzo’s home screen, called Savings & Investments, and will be available for eligible customers in the following weeks. However, if the company’s data shows that a customer is in financial difficulty, the ability to open new investments will not appear on the platform.

Also, the feature offers users the flexibility to amend, cancel, or withdraw their investments at any given time. On a monthly basis, Monzo will charge a flat fee of 0.59% on customers’ investments, which comprises a 0.14% fund fee and 0.45% platform fee to provide the service.

The new product was created based on a YouGov research commissioned by Monzo which found that 69% of the UK population does not have information regarding accessible and simple-to-use investing products, while 60% of them state that they would be inclined to invest if the minimum investment amount is low. Moreover, 24% of UK residents who invest admitted that they improvise and do not have the necessary knowledge to do it.

Currently, Monzo is looking to enter new areas of financial services and, by launching this product, people can invest within an ecosystem that includes budgeting, spending, transferring money, and borrowing. 

About Monzo

With a full banking licence, Monzo provides customers with secure and efficient financial services. Recently, the company launched a new feature on its Monzo app, which allows customers to see if the caller works for the company or not. The feature was developed to prevent clients from being affected by fraudsters who claim to be Monzo employees.

Also, in July 2023, Monzo explored a potential merger with Denmark-based fintech Lunar. Both companies considered the benefits of joining forces and the impact it would have on the global fintech space. In April 2023, Plaid integrated in the US with Monzo, allowing customers to connect their Monzo account to over 8,000 fintech apps. Clients can safely monitor and transfer funds from their accounts to other financial institutions, the integration being made through Plaid’s Core Exchange platform.

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Keywords: investment, online banking, mobile banking, digital banking, fintech
Categories: Banking & Fintech
Companies: Monzo
Countries: United States
This article is part of category

Banking & Fintech


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