By Daniel Lanyon on Tuesday 1 September 2020
The digital bank, like many fintech challengers, is playing closer attention to costs. This follows a down round earlier this year that saw its valuation fall 40 per cent lower and a series of redundancies.
Monzo is adding new fees for less active users in November, about one in five of its more than four million customers.
The new changes will, Monzo says, only affect a small minority of users. Particularly those that use it ‘more as a spending account than a bank’.
Some customers will, after 31 October, have a fee-free ATM allowance of £250 every 30 days in the UK and EEA, with a 3 per cent fee after.
Allowances outside the EEA aren’t changing for anyone, staying at £200 every 30 days, with a 3 per cent fee after.
Also, in November Monzo will start charging for replacement cards. Some users will get two free cards and after that pay a £5 fee. Other customers will always pay £5 in the UK, and won’t get two free ones.
Those getting bigger allowances will do so because Monzo deems them to be using it more as a bank than a spending account.
This is because customers are doing at least one of the following.
Monzo Plus customers also get the bigger allowances.