Monzo, the UK digital bank, has launched a product designed to banish the barriers to investing. Aptly named Investments, makes investing simple, affordable and accessible directly through its app. It comes as new research conducted by YouGov shows that nearly 70 per cent of the nation does not know where find an accessible and straightforward investment platform.
Monzo has opened a waiting list for the new product Investments which eager customers can join. This enables them to choose a risk profile suitable to them. Blackrock, the fund manager, offers Monzo consumers one of three multi-asset funds in which consumers can invest as little as £1. These profiles are titled ‘Careful’, ‘Balanced’ and ‘Adventurous’.
Guidance and information is surfaced throughout the seamless product journey, giving customers the confidence they need to make informed decisions.
Furthermore, Monzo is ensuring flexibility for consumers taking part in Investments. Investors will have a chance to amend, cancel or withdraw their investment at any time, all through the Monzo app. These investments are shown in Pots alongside the rest of the consumer’s finances.
Customers pay 0.59 per cent of their investment value with no hidden charges (comprising a 0.14 per cent fund fee and a 0.45 per cent platform fee). With £1000 invested with Monzo, you would pay the equivalent of 48p a month in fees.
New YouGov research, commissioned by Monzo, shows nearly 70 per cent of the UK population don’t know where to turn for a product that makes investing accessible and straightforward. Furthermore, people who have never invested say the main reason is not having enough money. In fact, 60 per cent of all adults said they would be more inclined to get started if the minimum investment was low.
Around a quarter (24 per cent) of people said the increased cost of living had made them more inclined to invest in their long-term financial security. However, roughly 2.5 million Brits who currently invest, admit to ‘winging it’.
Creating a singular financial app
While Monzo isn’t looking to be a super-app, it wants to be an all-inclusive financial app. Monzo Investments is the next step in achieving this. This aim is supported by Monzo’s research which shows that 57 per cent of people would feel more in control if they could track spending, saving and investing all in the same place.
The product will be rolled out to all eligible customers over the coming weeks.
Monzo CEO, TS Anil, said: “I’m so excited to get this product into the hands of customers. Especially as we know they want to invest in longer-term financial goals but don’t know where to turn or how to get started.
“With Monzo, they now have investment expertise at their fingertips. They can invest as little as £1 and track progress alongside their saving, spending and borrowing in the Monzo app. 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.”
Sarah Melvin, head of UK, BlackRock said: “BlackRock is thrilled to have been selected by Monzo to support their customers as they become investors, helping more and more people experience financial wellbeing. We know that for many, taking the first steps into investing can be daunting. Similarly, it’s often difficult to know where to begin.
“That’s why I’m so proud and excited to bring our global investment expertise to millions of people in the UK through Monzo’s app, giving them the ability to invest in a simple, affordable and accessible way.”
