Introduction
Monzo was founded in London in 2015 as an attempt to simply make banking better. The recipe is simple and effective: Monzo offers young UK customers a proper current bank account (including sort code, banking license, and deposit security) without a credit check. All that is available in plain hours after application, without setting up a meeting and filling in any lengthy forms: there are no physical branches at all.
The banking with Monzo is done through a handy mobile app, and cheaper than a regular bank.
Today, Monzo claims to be the fastest growing UK bank, with over 2 million customers and about 40,000 new accounts being opened every week.
The British Bank Awards 2019 has named Monzo the Best Banking App.
The company is planning on opening operations in the US, and already collecting applications for a waiting list.
Free AccountFees and charges applyBanking Features
Monthly budgets
Set budgets and spending goals. Get an instant breakdown of your spending into 12 categories including groceries, shopping etc’.
Instant money transfers
Transfer money easily via bank transfers as well as within the app between the Monzo users. (In GBP, within UK). You can also transfer money internationally with TransferWise.
Monzo Saving Pots
Monzo offers a savings marketplace of 3rd party providers. You can choose the most suitable provider for your savings goals.
Round up transactions
For any transaction over £1, Monzo will round up to the nearest pound and put money aside into any savings pot.
Joint accounts
Joint accounts are available between two Monzo current account holders.
Split the bill
Split the bill in the app with anyone else using Monzo.
Apple Pay and Google Pay
Add Apple Pay or Google Pay to your Monzo account and enable contactless in-store payments.
In-app card control
Enable foreign payments, activate paying online, set limits for withdrawals and payments.
Monzo Account Types
As a Monzo user, you can choose a personal account and a business account.
Personal account types
Monzo’s main offered account is the personal current account. Nowadays Monzo is working on launching two more accounts: Monzo Business and Monzo Plus, which require, for now, to join their waiting list to get approved.
Business account types
(Upon joining a waiting list. Coming live in 2019)
Instant bank transfers and direct debits (International)
Connect accountancy tools direct to the Monzo app
Employees access
24/7 customer support over chat, email or phone
Set Tax and bills aside in Pots
Fees
Monzo charges smaller fees than a traditional bank, with many features offered free of charge. However, fees do still apply to some of the services.
Security
One of, if not the most important aspect of mobile banking is security. Monzo stands up to the highest standards of a bank account, even if it’s a mobile-only one:
Fingerprint login
A choice of preferred login method: a password or a fingerprint.
Real-time account notifications
Users receive instant push notifications after all account activity, keeping them informed about the status of their account and their funds.
Card blocking / unblocking
Monzo app to control everything about your card. From changing your pin to freezing it if it gets lost.
Banking License
Monzo has a banking license and is protected by the Financial Services Compensation Scheme (FSCS), meaning that the customers’ money up to £85,000 is secure and refundable.
Using Monzo app abroad
Monzo debit cards are free to use for purchases abroad and you don’t have to notify your bank’s financial control. Any point of sale transactions, as well as online payments outside of the UK are free of charge.
Regarding the ATM withdrawals overseas, there is a £200 a month fee-free limit, with a 3% fee applied to any withdrawals after that threshold. However, there’s still a chance to be charged by the ATM’s owner, but it is out of Monzo’s control.
A handy Monzo feature though is that you can control if you have any fee-free allowance left within the app, in order to avoid the overspending while abroad.
All foreign currency transactions are made according to the current Mastercard exchange rate, based on the live market.
Monzo Support
Monzo’s customer support is available 24/7 over the phone, email and live chat. In addition, there is a FAQ and forum with most popular questions and answers available on the official website, and from within the app.
Pros & Cons
Pros
- Free cash withdrawals in GBP
- Free payments abroad
- Overdrafts and loans facilities are available
Cons
- Only available to UK residents
- GBP only account
Conclusion
Monzo is one of the leading disruptors in the UK banking space, and its rapid growth reflects that. By combining the security and core features of traditional banks with a faster, more streamlined app experience, it offers a modern alternative without the overhead of physical branches.
Overall, Monzo delivers a strong package. However, some of its key advantages — such as account approval without a credit check — come with limitations. It works particularly well for UK residents, but for frequent travel or broader European use, alternatives like N26 or Monese may be more suitable.