The British bank Monzo, specializing in mobile devices, crosses the pond in the United States. With a value of over one billion dollars, Monzo has expanded its customer base in the United Kingdom and has recently reached 2.2 million customers. Unlike traditional banks, Monzo only runs on iOS and Android through an app and does not have traditional banks. She calls herself "the bank of the future", which will attack the biggest banks.
Monzo has managed to grow rapidly in the UK by focusing on features that other major UK banks simply do not offer. There are instant notifications for your expenses, with payments removed from your bank balance so that it's always accurate. Monzo also offers simple ways to send money to friends who also use the service, split up bills at the restaurant and even save money for vacations, gifts, etc.
The great attraction of Monzo has always been customer service, a colorful coral card and her focus on her community through in-person events. Hundreds of people attend events in the UK where they share their thoughts with the Monzo team. The company now plans to use similar events in Los Angeles, New York and San Francisco over the next few weeks to launch its card in the United States and obtain direct returns.
"Last month, we ran a TV campaign that went very well, and we think it's a good time to start our first steps towards internationalization," said Monzo CEO Tom Blomfield. , in an interview at The Verge. "Initially, it will be a partnership with Sutton Bank, because we are not yet regulated in the United States, but at the same time, we will ask for a US bank charter."
As Monzo does not have its own US banking license, the features will be a bit different. "The main thing that will be removed is the loan," says Blomfield. "We are not a bank (in the United States), we will not lend money to our customers." Most of Monzo's existing features will be available in the US, including notifications such as payment notifications and direct debit payments (contactless payments).
Monzo earns money in the UK through services added to your bank account, such as the sale of insurance or the collection of fees from overdrafts. It is not clear at this time what services will be available in the United States, and it seems that the company is still developing these details as it is gradually launching cards and collecting returns. More details will be available at The American site of Monzo. Monzo also looks for potential customer feedback on items such as cash deposits, card refills and check deposits, as these will not be supported initially. You will need to transfer money to the Monzo account from another US bank account, or have your pay paid to your Monzo account.
All Monzo cards will be released in the US with a contactless payment (contactless payment), which is important in a market that lacks cards that support this modern form of payment. The UK has been using contactless cards for years, but only 3% of cards in the US are contactless by 2018. AT Kearney reportcompared to 64% in the United Kingdom.
Unfortunately, Monzo will not benefit from Apple Pay or Google Pay support when it launches in both the United States and the United Kingdom, but the company hopes to add it in the future. Monzo will not charge a fee to spend a card or withdraw money, and there is no overdraft fee in the United States. The exchange rate is not increased if you start using the card abroad and the first $ 200 every 30 days are free for cash withdrawals, for a fee of 3% thereafter .
While Monzo and others like Starling have blossomed into the vibrant Finnish scene of the UKhe faces a different challenge in the United States. The bank Simple is probably the closest to Monzo in the United States in terms of mobile banking features, but BBVA has acquired it and the US market has not had a big impact on the US market, which still relies on cash for many transactions. Monzo will now have to navigate federal and regional laws and regulations and attempt to obtain a US banking license to actually advance his plans.