Monzo has expanded its offering with the launch of three new subscriptions, building on a successful run which has seen its customer base grow significantly.
The three new fee-based services are Monzo Perks, Monzo Extra and Monzo Max, priced at a monthly cost of £3, £7 and £17. Monzo customers using the digital bank’s existing packages, Plus and Premium, wil be invited to switch to the new plans.
Customer engagement has informed the design and delivery of the offers, with the bank having spoken to 45,000 of its users in general. This was coupled with the bank’s research into customer spending habits.
Fernando Fanton, Chief Product Officer at Monzo, said: “Whether it’s Monzo’s top savings rates, a weekly treat from Greggs, travel insurance, breakdown cover or even more tools to supercharge your budgeting, we’re on a mission to make every pound and penny go further for our customers.
“We’ve designed Extra, Perks and Max with their feedback, hearing what matters most to them – and we know they’re partial to a sausage roll given they spent a collective £70m at Greggs last year!”
As Fanton alluded to, customer savings have been a key priority area for Monzo, building on the bank’s existing efforts in this area looking at travel and phone insurance, Instant Access Savings rates of 4.6% and discounted investment fees.
The firm has been exploring various ideas how it can save customers money regarding everyday spending, such as the partnership with Greggs mentioned by Fanton. The bank observed that its customers spent £70m at the UK bakery chain last year.
Breaking down the new features, each one has a different focus area – Perks and Max encompass the Greggs food and drink offer, as well as an annual railcard and UK and Europe car breakdown cover.
Extra, meanwhile, is a money management tool, featuring roundups, a credit insight tool and visibility across other banks and credit cards in the Monzo app.
The subscriptions could prove to be a valuable customer retention tool for Monzo, whilst also promoting its services to prospective customers. The bank is already surging ahead in popularity, recording nine million active customers in February 2024, having been set up back in 2015.
Its success has not gone unnoticed at the investor level either. The firm has been observed as leading a resurgence in UK fintech capital venture investment, after being the subject of funding by the likes of Alphabet, the parent company of Google, and reportedly the Singapore’s Government Investment Corporation (GIC).
