Monzo launches investments for its 8 million customers through BlackRock deal
Neobank Monzo has long been plotting its move into the lucrative wealth market.
Monzo’s foray into wealth is here.
The UK-based neobank has long been rumoured to be building up a suite of investment products as it looks to move to longer profitability.
From today Monzo’s customers can join a waitlist to invest as little as £1 into three different multi-asset funds, provided by asset management giant BlackRock.
Fees are 0.59 per cent, made up of a 0.14 per cent fund fee (which goes to Blackrock)and a 0.45 per cent platform fee (which goes to Monzo). “I’m so excited to get this product into the hands of customers, at a time we know they want to invest in longer-term financial goals but don’t know where to turn or how to get started,” Monzo CEO, TS Anil, said.
“This is an important next step on our mission to make money work for everyone as we put the Monzo stamp on another corner of finance that is perceived as complex and inaccessible. Millions of people in the UK feel investing isn’t for them - it is now,” he added.
The bank reported a loss of £116.3m for the year up to March 2023, a fall of just 2 per cent, for the twelve months up to March 2022, but says it is on track to reach annual profitability.