Everything to know about Monzo's two new business accounts
Monzo has announced the launch of its free and paid business accounts. FinTech takes a closer look at the challenger bank's new features.
This initiative keeps the challenger bank competitive with the likes of Starling, who has catered many of its services to the UK’s £17bn “shed economy,” comprising over 104,000 micro-businesses that operate from their garden sheds.
Monzo shared that many business owners are frustrated with the time allocated to banking and administration, as opposed to the actual day-to-day running of the business. Opening business bank accounts is a timely process, taking weeks just to get started. In addition, many self employed individuals feel that they incur unnecessary costs, such as UK transfers.
How does Monzo Business work?
Monzo is offering customers two variants of the business account: Monzo Business Pro, for a monthly service fee of £5 a month; or Monzo Business Lite, a standard account modified for businesses, with no monthly maintenance fee. Both of these options are UK current accounts, and eligible deposits in Monzo are FSCS protected up to £85,000
Features of Pro
As an extension of the challenger bank's popular "pots," it will also provide Tax Pots, to help users allocate money for taxes. Users can choose what percentage of income is allocated to the tax pot. This money can be added or removed at any time.
Another feature of Pro is that current accounts provide multi-user access for limited companies. Three people can access this account with all of the same capabilities.
Users also have the option to integrate accounting tools such as Xero, FreeAgent and QuickBooks.
Transactions can be exported as CSV, PDF or QIF on an as-needed basis.
Features of Pro Lite
These features are also included with Pro:
real-time notification and management of cash flow.
The standard benefits of using a digital-only bank: No services are limited on the app.
Professionals can access the 24/7 helpline.
As with Monzo's individual accounts, users can open an account from their phones, and can also trial the Business Pro account for one month for free before 16 April 2020. The UK Fintech announced that it will also provide three months free membership to its business account holders who have been on the waiting list.
Monzo also offers a current account switch service, for those who may already have accounts open with other banks who want to transfer their accounts over to Monzo.
Did you know? Monzo has also implemented solutions to assist its users in overcoming addiction. Learn more here.
For more information on all topics for FinTech, please take a look at the latest edition of FinTech magazine.
Mobile money app Monese partners with Veriff
According to reports, the partnership was motivated by Monese recognising the need for enhanced security for its digital banking services. The collaboration will provide an additional layer of safety and security for the mobile money app.
Monese, which was launched in 2015 by Estonian entrepreneur Norris Koppel, was the UK’s first mobile app alternative to incumbent banks, and currently offers services for mobile money accounts across 31 countries.
Veriff is an Estonia-based technology company focused on identity verification that has seen rapid growth over the past 18 months. In April, it secured US$69mn in a Series B funding round led by investment firms IVP and Accel.
Cybersecurity and fintech
The spate of data breaches in recent weeks is driving companies to seek cutting-edge technologies to fortify their platforms against hackers who use malware and ransomware to infiltrate and steal customer data. Identification fraud is also on the rise.
The partnership with Veriff will see enhanced security solutions integrated into the onboarding and authentication processes of Monese’s platform, to verify the identities of Monese users and help the company meet KYC (know your client) requirements.
The integration will also speed up and improve the accuracy of user screening, thus helping to prevent identity fraud.
Monese customer base
The majority of the banking fintech’s customers work in the gig economy, are self-employed, or living in a different European country to that in which they were born, and are not therefore well served by mainstream banks. Monese has filled a gap in the market by providing access to flexible financial services and support.
Customers can deposit salaries, set up Direct Debits or standing orders, and use their account as a savings platform. Monese also allows users to link their PayPal and Avios accounts to their Monese accounts and pay via Apple Pay and Google Pay.
Competative market for fintech
Speaking about the new partnership, Janer Gorohhov, co-founder and chief product officer of Veriff explained, “This partnership with Monese strengthens our position in the UK’s highly competitive digital banking market. We’re excited to aid Monese in its mission to provide access to fair, flexible financial services and support while minimising friction as we simultaneously expand our organisation’s footprint in the UK via our customer base and team.”
Atul Choudrie, Chief Commercial Officer at Monese, said the move would improve customer services and increase protection against fraudulent behaviors. “At Monese, we help people build sustained financial resilience, by providing access to fair, flexible financial services and support.”
He added, “Working in partnership with Veriff, we are unlocking new possibilities in delivering a safe and efficient onboarding experience that will help us reach more customers.”