Monzo's investment account

Hey Team,

Monzo has recently moved the investment account into its short-term goals.

They specified that the accounts will be with 3rd party providers. Given many similarities with Freetrade in the way the organisations operate, would it not be interesting to see of a joint cooperation is even theoretically possible?

Many people of generations Y & Z (mostly the latter) are now switching from High Street to Fintech seeking flexibility, adaptability and quick development that does not need to get the approvals of 300 internal corporate governance boards but rather simply does the work!

Being a Monzo customer myself, I would be quite interested to see if they could synergise with Freetrade.

Simply a thought.


If be very keen to see Freetrade linking up with Monzo too. It seems like they’d be a great match in terms of their values as well.

Yesterday’s update about their pricing included a mention of a Freetrade ISA. Perhaps an integration with Monzo could enable users to move their savings to that ISA, if it was set up. We’ve already seen Monzo trialling integrations with investment providers in their alpha version of the marketplace.

You could even use Coin Jar to create a similar setup to Moneybox & sweep spare change to Freetrade. But with the added benefits of lower fees & the ability to choose exactly what that money’s used to invest in :smiley:

P.S. - Monzo said that they removed investments from their marketplace because the UX wasn’t good enough. My guess is that, that’s because user’s were redirected to provider’s websites where they still had to work their way through a clunky application process because they could invest.

I’m hopeful that Freetrade will make their signup process much simpler. And since they’re building a full stack platform, perhaps they will be able to build deeper integrations with providers like Monzo & Starling too..


This is something I’m really hoping to see, this integration would simplify a lot of tedious transactions!

Seconding this, I actually suggested something similar over in the Monzo thread! :slight_smile:


I’d really like to see this integration. Probably not one for the near term though.


An integration with Monzo would be on my dream wish list, surely it would bring in a lot of new users as well.

Seems they would compliment each other nicely!


Even a stop gap for now, something like a pot that shows your freetrade portfolio (or even just the value) but you have to click a link and it opens the freetrade app.

ooh my first post!


A Monzo integration makes a lot of sense, Monzo partnered with Moneybox but that costs you 0.45% pa whereas you could invest in the exact same funds with Freetrade but it would be free!
It may not have have a round up the change feature, but you could have a regular payment instead, I believe Moneybox takes a weekly payment anyway…


Yeah that’s right, last time I checked Moneybox keeps a running total of your “spare change” and then takes it as a lump sum. Would be much more efficient if it could all be done real time so you don’t see it, or at the least, taken from a specified pot ie. the Coin Jar


Monzo is tiny compared with Revolut on both current number of users and growth. Integration with Revolut would make more sense…

Both will be good but Revolut still has a e-money license and Monzo has a UK Banking license.

I read somewhere Revolut’s growth was helped by the cryptocurrency hype at the end of last year. But that could just be rumours.

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Before the Crypto spike, Revolut already had many more customers than Monzo.

You are probably right. Just sharing that they are different in some ways and the explosive growth between last years raise and this year was partially due to cryptocurrency hype. Revolut is cool… :+1:

Revolut is available in the entire Europe whereas Monzo is UK exclusively. One thing I am suspicious about Revolut is that they try to chew a lot up and the whole system may fail if they do not manage to control it. Which is why sometimes you may prefer a steady growth in a single area you are expert in (Freetrade/Monzo) instead of consolidation.


A post was merged into an existing topic: FX Charges

Alternatively, how about a partnership with Oval Money? They’re soon to be testing some investment solutions through their app.

Now this is a mighty impressive customer base to tap :rocket: :fire:


Simon’s shared a screenshot from the live(ish) counter on Monzo’s homepage there btw - in case anyone reading this later wants to check how many users Monzo has then :chart_with_upwards_trend:


Now that they have a cash saving product available as a pot, we recently had a discussion over on Monzo about a Stocks and Shares pot. As an investor in both, I’d be really keen to see this at some point - personally I think it could really help boost Freetrade growth, particularly with those who have little interest in investing, though I completely understand it won’t be a priority for Freetrade right now.

The savings pot is interesting as it’s using the Monzo onboarding and user verification to make it a pretty much one-click process to open a savings account. I think Freetrade could do something similar and provide one-click access to a simplified account, while leaving the customer open to downloading the Freetrade app later and managing their investments in a more involved way, so it would be a win for Freetrade if there is a large base of Monzo customers who have never thought about investing in the stock market. I believe there is.


I concur.

I did make reference to that in my previous Monzo :unicorn: thread.

I think it’d be a great way to supercharge user growth (when ready… there is still 70k people on the waitlist). With that said, I don’t really know about revenue share in such a partnership and it could cause unit economics to fall. I’m sure the folks at @freetrade_team are exploring all avenues.


I evidently have too much time on my hands, so cross-posting (I hope that’s okay) something I was posted on the Monzo forum about integrating the apps:

There’s been talk over on the Stocks & Shares Pot thread about seeing this type of information in Monzo. Freetrade was mentioned, and I’ve been thinking about how an integration with Freetrade might work.

Here’s the pitch: :newspaper_roll:

  • Monzo + Freetrade = highly complementary
  • Monzo can unlock 1m+ additional users for Freetrade - when Freetrade is ready for them. FT can then monetise a large part of this market when they launch chargeable ISAs and Alpha (their monthly subscription product).
  • Freetrade can help Monzo in demonstrating a tight integration between the apps, and make the financial hub concept come to life. This data and demonstration will be valuable in attracting additional partners.
  • But Freetrade + Monzo can be more than the sum of their parts. What if they offered a set of pre-selected investment products that they user didn’t have to actively manage - a bit like Nutmeg - bought in a couple of taps from within Monzo? This doesn’t dilute the Freetrade proposition and a small mark-up and revenue share means that this might be a lucrative revenue stream for both companies.
  • Freetrade could do with better banking services - and live cash transfer from external bank accounts. Monzo could provide back-end banking services to Freetrade - for example by giving each Alpha customer a sort code and account number - making the lag of sending money to Freetrade a thing of the past, generating revenue for Monzo and making Freetrade slicker.

What would it look like in the Monzo app? :monzo:

  • New ‘investment’ section in the new Account tab
  • From there, existing Freetrade customers see their Portfolio as an aggregated view. Tap to breakdown - still within Monzo - then when selecting individual stocks it takes you seamlessly to the right screen in Freetrade.
  • New customers get the ability to open a Freetrade account. Immediately with no hassle. App downloads in the background - Monzo shares KYC with Freetrade (with the user’s consent, of course) and you’re already logged in and good to go.
  • As a separate proposition within the Monzo app, users can tap to open a set of pre-prepared funds. Available exclusively within Monzo so not to dilute the Freetrade share-dealing proposition, charging a small commission would generate revenue for both companies.

How would they make money? :euro:

  • No cost to either party of showing existing Freetrade customer data within Monzo - this part of the integration just helps both companies grow
  • Assuming Freetrade sees value in growing its freemium customer base, Freetrade pays Monzo a referral fee for each account opened from within Monzo (£5, say).
  • Similarly Freetrade customers opening a Monzo account would net Freetrade £5 (same incentive as for the other Monzo account opening trials).
  • For the pre-selected investment products, Monzo and Freetrade each take a mark-up of 0.25 - 1%
  • Monzo charges a monthly fee to provision bank account services to Freetrade alpha customers (call it £1/month)

(Note: all these figures are guesses and based on no real research)

This would lead to an ongoing, mutually beneficial commercial relationship, I think / hope.

What does everyone think? Is this an interesting model for folks like Monzo and Freetrade to look at?