Monzo has unveiled an investments feature, that will enable its customers to put as little as £1 into a choice of multi-asset funds.
The British digital bank has launched the solution in a bid to break down the barriers to entry surrounding investing, making it simple and affordable through the Monzo app.
Andy Smart, General Manager for Saving and Investing at Monzo, commented on the announcement on the app’s community forum. He said: “Over the last year, we’ve been speaking to customers to understand their pain points around investing. Our research found that getting a return on your money was one of the most important yet underserved jobs to be done amongst our current customer base.
“At the same time, many people told us that whilst they know investing is important, they found the jargon and complexity of existing investment products intimidating. And with the overwhelming choice of investment options out there, it’s tricky to know where to start.
“We wanted to solve these problems and specifically help those who are new to investing (or passively investing), grow their money without needing to know the ins and outs of how financial markets work.”
Nearly 70% of Brits do not currently know where to turn for a product that makes investing accessible and straightforward, according to a YouGov poll for Monzo.
Monzo’s millions of users are being invited to join a waitlist for the service, which comes with a fee of 0.59% of their investment value.
FinTechs such as Plum and Chip already offer investing apps but Monzo says that its research shows that 57% of people would feel more in control if they could track spending, saving and investing all in the same place.
TS Anil, CEO, Monzo, says: “This is an important next step on our mission to make money work for everyone as we put the Monzo stamp on another corner of finance that is perceived as complex and inaccessible. Millions of people in the UK feel investing isn’t for them – it is now.”
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