Monzo Business reaches 50,000 customers
London based digital bank, Monzo announced yesterday that it had reached the milestone of 50,000 Monzo Business users, just six months after the launch of the business accounts. Business banking with Monzo can be done in two ways: a free Business Lite account which includes a basic business account, receipt scanning and web access or the Pro £5 per month account option that allows users to add tax pots for automatically saving towards a tax bill, invoicing, multi-user accounts and much more.
According to the challenger bank, 55% of its business account users are sole traders, and 45% are limited companies. It states that its range of account holders can be anyone from Etsy sellers to bakers to tech startups, with some businesses being over 15 years old and others only being founded during the COVID-19 pandemic.
“We serve businesses in all the nations and regions of the UK,” said the blog post. “70% of our customers located outside Greater London, and 58% outside Southeast England.”
Monzo is known for being customer-centric with its banking solutions, its business banking appears to be no different. After learning business users would benefit from a desktop experience, it made sure to provide as such. It went above and beyond to provide a slick web experience with the ability to still use features such as moving money between pots and downloading statements as various file types, despite the core of its business being very mobile app-based.
Transparency and efficiently managing business finances appears to be a priority too, by introducing 14 new income and spending categories such as Sales, Services, Wages and Inventory to name just a few, Monzo allows customers to have visibility like never before.
“Our vision now is the same as it was at day one – to be the centre of your business finances. To give you helpful insights and tools that automate your painful admin, so you can spend more time doing what matters most: running your business.”
Monzo states that its focus for the upcoming months will be assisting businesses further as the economy settles into a post-coronavirus state. Chasing customers for late payments on your behalf, automatically saving to tax pots and even helping businesses pay their bills if they are running short, are just of the few goals Monzo has shared for the future.
CMA warns UK and Irish banks over bank transaction histories
Specifically, the CMA named prominent challenger bank Monzo, the Bank of Ireland, NatWest Group, and Virgin Money as not providing customers with records of their bank transactions within the maximum outlined timescale (40 days after closing the account).
Such information is crucial not only for ensuring a smooth transition from one bank to another, but also to provide a foundation for credit applications in the future.
According to the Retail Banking Market Investigation Order 2017, 95% of bank and building society customers should receive their bank transaction histories in at least 10 days.
Reputation: A bank’s greatest asset?
Of the 150,000 customers affected, Monzo was by far the main contributor - 143,000 (95.3%) - with the other three dividing the remaining 7,000.
The extent to which the magnitude of its mistake is attributable to being a digital-only bank is not clear, although it may give some customers pause for thought. With a superior customer experience being among the bank’s greatest assets, continued reputational damage is something that it cannot afford to sustain.
Although the CMA’s action in this instance has been to issue each bank a warning and order the immediate dispatch of all outstanding information, it has warned that future breaches will carry heavier consequences. Measures could include legally enforceable compliance audits on a yearly basis.
Helping customers get a better deal
Condemning the banks for negligence that could negatively impact customers’ desires to take out loans or mortgages, Adam Land, CMA Senior Director of Remedies Business and Financial Analysis, promised that his organisation would remain vigilant to similar behaviour moving forward.
“Banks must comply with all the rules – that includes providing a full transaction history promptly.
“We will be watching closely to make sure these leading names stick to their word and don’t let their customers down again. The Bank of Ireland, Monzo, Natwest Group, and Virgin Money should be in no doubt that the CMA stands ready to take further action if these failures are repeated.
Image source: gov.uk