The $4.5 billion digital challenger bank Monzo has made its first step into the enormous financial investing market by launching a service that allows members to make investments.
Customers of Monzo will be able to invest through the Investments feature in a number of funds run by the world-renowned asset manager BlackRock. Last week, CNBC visited Monzo’s offices to get an early peek at the device. Users will be able to invest with as little as £1 thanks to the new system, which will launch on Tuesday.
The move will place Monzo in direct rivalry with older, more reputable banks like Chase, which provides online investment management through its Nutmeg subsidiary, with asset management companies, as well as with more recent startups like Chip, Moneybox, and Plum.
Customers of Monzo can currently deposit funds into savings accounts that pay interest. However, this is the company’s first foray into the realm of investing.
The application procedure is rather easy to understand. In order to access the product, customers will be added to a waitlist. After joining the waitlist, eligible users will receive an invitation to set up an investment pot.