By Oliver Smith on Tuesday 17 March 2020
The next stage in Monzo's freemium strategy?
The move comes amid escalating competition in the SME banking sector, with rivals Starling and Tide boosted by huge cash injections from the Banking Competition Remedies fund last year.
Monzo’s offering comes in two halves, a free Business Lite account which includes a basic business account, receipt scanning and web access, and a £5/month Business Pro account that adds tax pots for automatically saving towards a tax bill, invoicing, multi-user accounts and more.
“We’ve heard how difficult it is to find a business account that delivers what businesses need—and have also heard over and over that it can take days, and even weeks, to get an account up and running,” said Monzo CEO Tom Blomfield today on the launch.
“Companies need stress-free banking that just works, so they can focus on what's important—growing their business.”
The digital bank says it has been building and testing its Business accounts with over 2,500 business owners over the last 12 months, who it’s worked with to develop the account.
Whether SME banking needs yet another digital bank to wade in, we’ll have to wait and see, but given the current economic crisis facing businesses they’ll likely savour any help they can get right now.