Automation and technological advancements opened up new possibilities in the finance industry. Mobile applications designed for payment, banking, and managing money are on the rise and are set to revolutionize traditional banking means.
One application that is making waves in the fintech market is Monzo. This app-exclusive UK bank account lets you spend, save, and manage your funds, just like an onsite bank would do. The catch is you do not have to visit any branch because there is none! From opening your account to enjoying its services, all of the processes are done on app with a couple of taps.
With millions of users worldwide, you might wonder what makes Monzo so special from other applications promising the same thing? Why do people choose to open a remote bank account through this platform? And is it worth joining the bandwagon, to begin with?
To answer all those questions, you need to orient yourself about how Monzo came about and what services the app actually offers. If you are interested in knowing whether Monzo is your best choice for an alternative banking experience, continue reading.
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Monzo’s framework
Traditionally, bank policies are too robust, unmalleable, and banks are often inept at hearing their customers’ concerns. Usually, all they care about is how they can gain from your savings, and not the other way around.
This gaffe in the finance industry is what drove the creators of Monzo to do what they are doing today. Technically, Monzo is a virtual bank made by everyone for everyone to enjoy an easier and more comfortable banking experience.
Monzo aims to challenge the traditional and outdated means of its brick-and-mortar counterparts. To do this, the company dedicated itself to creating a platform grounded on transparency and excellent user-experience. The application is ever-changing as long as consumers continue to send their feedback and recommendations on how to make Monzo better than before.
Also, Monzo owes its success to the people. It began as a start-up company mostly sponsored through crowd-funding. Therefore, most of its users are also the same people that helped build the company from scratch.
After it began operations, Monzo’s popularity heralded its reign to be one of the fastest-growing start-up companies in the UK, having a cult following of over four million people worldwide. Now, that is impressive for a neophyte fintech start-up company.
Monzo’s claims
The reason why people love Monzo is that it claims to provide a better banking experience while working closely with its users. Everyone loves to have a sense of community and personal engagement, especially when money is involved.
The real question is: does the app live up to its claims?
To know the answer below is a breakdown of Monzo’s key features that users vouch for:
Instant UK savings account
Monzo began as a prepaid debit card with a mobile application. But since the company received its license from Financial Conduct Authority and Prudential Regulation Authority in 2015, Monzo began operating as a full-fledged real bank. Meaning, you can directly deposit to Monzo as if it is a savings account from a traditional bank in the UK. The best part is that, unlike conventional banks, creating a savings account in Monzo will only take a few minutes and very little requirements.
Free local bank transfers
Interbank transfer fees can be costly. Instead of receiving or sending the full amount, the bank will charge you almost 3% to 4% for the transfer. What a waste of money, right? Monzo thinks so too. As a solution, Monzo does not charge any fee if you are sending or receiving money anywhere in the UK. However, do note that you cannot receive money from other countries outside the UK. Nonetheless, having no fees to worry about in local transfers is a plus.
Money pots
Monzo is similar to other money managing apps in the fintech industry. That said, the app also has a “pots” feature that will help you efficiently allocate your money for wise spending. For example, you can create a pot for your grocery, bills, transport, and whichever necessity you like. The app will automatically deduct money from your savings and put it in the pots so you will stay on track with your finances. And unlike other apps, Monzo lets you lock your pots. Hence, you can use it to safely save for a goal or two.
Real-time monitoring
Ever wondered where your money went? Wonder no more as Monzo is a reliable app that will let you monitor your spendings in real-time! It provides instant notifications for every transaction made using your Monzo account. Also, the company collaborates with Flux, which will help you save receipts of your purchases—talk about paperless transactions!
Budget partner
If you are someone who is always short on money until the next payday, then you will need to install Monzo. It will help you keep up with your monthly budgets. The app allows you to set a certain budget and notifies you when you are about to spend beyond your means. As a result, you will have smarter spending habits and more future savings.
Monzo is mostly known for its vibrant coral card. True enough, in the world where social media prevails, having a pretty and Instagram-worthy debit card is something most people cannot say no to. But Monzo is more than that.
Overall, if you are to read a Monzo review and compare the application’s features and benefits along with other fintech apps and traditional banking options, Monzo is undeniably better. The coral card is only an added touch to a holistically clever online banking app. So, if you are asking: Is Monzo worth the hype? It definitely is.
This article has been written by the-money-equation.com. A website that discusses topics such as side hustles, financial education, investing, and business development.
Louie is the father behind the travel blog Browseeverywhere.com. He has a background in photography, E-commerce, and writing product reviews online at ConsumerReviews24. Traveling full time with his family was his ultimate past-time. If he’s not typing on his laptop, you can probably find him watching movies.
