Monzo attracts 200,000 subscriptions to the investment platform’s waiting list in just two days
- The Monzo Investments service was announced just over a week ago
- More than 200,000 investors have already registered on the waiting list for the service
More than 200,000 customers rushed to sign up to the waiting list for Monzo’s new investment service in two days, the bank claims.
Last week, Monzo announced the launch of Monzo Investments.
Customers were told they could sign up to a waiting list for the service when it was announced, which Monzo said would be rolled out “in the coming weeks”.
Queuing: 200,000 investors have joined the waiting list for Monzo’s investment service
A week later, the service now has a waiting list of 200,000 people, the Financial Times reported.
Those who sign up for the waiting list in the application will be able to see how many people have done the same.
The digital bank, with around 8 million customers in the UK, will allow investments from £1 in multi-asset funds from investment manager BlackRock.
BlackRock funds are available on many retail platforms, without the need to register with a digital bank.
Jason Hollands, director of Bestinvest, points out that: ‘The 200,000 people who have joined the waiting list represent 2.5 per cent of Monzo’s customer base.
‘But no commitment has been made at the moment – and it’s very easy to join the list – so it remains to be seen how many will ultimately follow through.
‘What this suggests is that banks that have very large and loyal customer bases are taking advantage of an opportunity, potentially taking advantage of people who may not be willing to shop around and want something simple.
“Acquiring new clients can be costly for firms that target clients who may have relatively modest amounts to invest, which is why traditional wealth management firms focus on wealthy individuals and families and some online platforms are now investing a considerable amount of money in television advertising.
Monzo’s Investments investors can choose from three profiles called “careful”, “balanced” and “adventurous”, which carry different levels of risk.
There is a fee of 0.59 percent of the investment value, which includes a 0.14 percent fund fee and a 0.45 percent platform fee.
For example, an investment of £1,000 would have a fee of £5.90 per year. Money can be withdrawn at any time without incurring any charges.