Monzo launches new in-app credit checker
Monzo continues to disrupt the banking industry as it takes on credit giants with its new in-app credit checks for customers.
Today Monzo announced that it is going to enable users to view their own credit scores, for free, within its mobile app. Much like fintech Credit Karma, the new service will give Monzo users direct access to credit scores, dispelling the myths of credit and returning control of finance to individuals. The service will also allow customers to receive insights as to why their credit score may have increased or decreased on a monthly basis. The service is due to be rolled out across Monzo’s products from late March onwards.
Incumbents like Barclays also offer this service, but at the cost of GBP£5 a month. Monzo is one of the first challenger banks to have this service integrated into its core banking app.
In a statement from Monzo, a representative from the challenger bank shared that many of its customers confessed that they do not understand how credit works.
How does the credit check work?
Monzo’s credit check combines two of the three main credit reference agencies in the UK: TransUnion and Experian. Monzo also uses both of these companies in order to advise on customer borrowing eligibility.
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John Ellmore, Director at NerdWallet.com, shared his comments with FinTech Magazine on the matter: "This news is a huge step for Monzo in further helping their customers understand their credit score. Many third-party services offer free credit score checks but there is always the caveat that the company providing the free report is offering the customer additional services or products. Monzo providing this as a free service is welcome news to UK consumers."
This news comes shortly after the announcement that Monzo has ranked as the second most popular brand in the UK, according to YouGov. Julian Tooke, Global Director of Product Integration at YouGov, remarked: "Monzo has certainly won over its customers." The challenger came in second place to Money Saving Expert.
Did you know? According to Wisebread, if the world’s credit cards were laid end-to-end, they could circle the globe 3.5 times.
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