Monzo removes ATM fees and limits in the European Economic Area

Monday 23 December 2019 10:27 CET | News

UK-based neobank Monzo has announced that it is removing ATM fees and limits for countries in the European Economic Area (EEA).

This includes the EU and a few other countries — following a change in EU regulation on cross-border payments. Outside the EEA, the neobank's policies haven't changed: Customers can withdraw up to GBP 200 (USD 261) without fees in a 30-day window, but past this threshold, a fee of 3% applies to cover Monzo's costs.

Free cash withdrawals without limits are reported be a particularly potent benefit in Monzo's home market, the UK. The UK is staring down the barrel of a growing cash access crisis: Between January 2015 and August 2019, the UK saw a staggering 3,303 bank branch closures, equivalent to 34% of the overall branch network in the country, according to Business Insider.

Many major banks levy foreign ATM withdrawal fees, making Monzo's new policy valuable beyond the UK as well. For example, Chase, Citi, and Wells Fargo all charge USD 2.50 plus 3% of the transaction on overseas withdrawals, while Bank of America charges USD 5 plus 3% of the transaction, per data from Finder. Out-of-network ATM fees may also apply on top of those charges, further exacerbating the issue. For that reason, Monzo's choice to eliminate fees in the EEA could help it gain an edge on incumbent banks that fail to do so.

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Keywords: Monzo, challenger, European Economic Area, EEA, ATM withdrawal fee, Citi, Wells Fargo, EU regulation, financial technology, neobank, digital banking, online banking, mobile banking
Categories: Banking & Fintech
Countries: Europe
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Banking & Fintech