UK-based digital bank Monzo has an ambitious product development roadmap, which includes the launch of its own mobile phone service. This step is a huge and positive departure! Founded in 2015, the fintech unicorn has seen impressive growth, now counting over 13 million customers and employing upwards of 3,900 full-time staffers. The bank aims to leverage its innovative approach to transform the mobile contract market, responding to customer feedback regarding the complexities associated with existing mobile services.
In May, Monzo completed a £500m funding round, giving it a sizable buffer for its lofty ambitions. The progressive finance company, which first applied for a banking license from British regulators in 2016. By last October, it became a £4.5 billion fortune. Its resultant valuation has significantly trailed competitors. Consider for instance, Revolut which is currently valued at a staggering $45 billion (£33.6 billion) despite only possessing a limited banking license.
As part of its mobile service development, Monzo is creating a digital SIM card—a software version of the traditional chip that connects phones to cellular networks and the internet. Through this innovation, we seek to make it easier for customers to discover and access mobile services, enhancing the overall mobility and accessibility user experience.
“Monzo is known for transforming products and an entire industry to deliver a great experience for customers,” said a Monzo spokesperson. “So when we heard from our customers that mobile contracts can be a pain point, we set out to explore how we could do this the Monzo way and are in the early stages of developing this idea.”
That transition to mobile could open the floodgates on new competition among the established private companies in the telecommunication industry. It holds the potential to unlock fresh revenue channels for Monzo. By addressing customer concerns and improving the mobile contract landscape, the bank hopes to attract even more users who are seeking better options.
There’s been a big twist to Monzo’s growth story. The bank faced scrutiny following a £21 million fine due to weak financial crime controls, a situation that CEO TS Anil described as “firmly in the past.” Anil underscored that the bank rattled off many areas where the bank has significantly improved its operational controls since that time.
Monzo looks set to soon take a step into the mobile services space. It seeks to be a disruptive agent of change that revolutionizes how consumers engage with financial services and mobile networks. Here’s how Monzo can and should go further in this new endeavor. Through the integration of smart tech trends, with a laser focus on the customer experience, they’re realizing new potential.