Monzo's investment account

Well I thought I was wanted…


It’s not about personal attacks or saying specific people aren’t wanted. Just a question of who is the target market at a macro level. And it wasn’t an answer to the question to say there’s no overlap between the two companies, it was a discussion point.

Overall my point is I don’t think I want to see Freetrade potentially constraining itself to fit into one bank’s model. I’d like to see it, at least in the short term, focus on standing on its own and making its own in app experience that people want to use and keep coming back to, rather than seeing it through another platform. Doesn’t mean I’m right. Many here clearly disagree.


I think that’s sensible. But done well (and I hoped to have covered that in my post) it would be a win/win thing - and that it could be done without any form of constraint. And other banks are available, too. Just because I bank with Monzo (and you clearly have your own views), it doesn’t mean that the model can’t be applied elsewhere.

There is, though, a question of priorities and what comes first for Freetrade. A Monzo (or other bank) integration is clearly not the most important thing at the moment - but I’d like to see it considered in due course. I think that it could help during a growth phase.


The figures about account balance etc are mainly from not long after the end of the prepaid days so it’ll be the next accounts that will be really interesting.

There are lots of people who have a vague knowledge of the existence of investing and are interested but have no idea where to start. They’d never seek out an investing app so an integration with Monzo would allow access to that market, who hopefully would eventually download the app. I change my mind every few days if I think this is a good idea or not, but after talking to some women I work with I think it would be worthwhile


I’m a Monzo customer but only transfer monthly spending money into the account. Do also have their savings account too but if they partnered with freetrade for freetrade pots and things like round up to deposit automatically into a freetrade pot then I’d find it very difficult to keep my wages going in to a different bank!


A post was merged into an existing topic: Monzo plans ‘Hargreaves for Millennials’

I agree with you on this - integration can be excellent but perhaps at this point not a priority. Given the limited number of customers vs the total UK current account market that this quite significant piece of work may gain I question the value in pursuing this in the short term.

Access to almost 2 million Monzo customers isn’t insignificant, especially if you consider potential media coverage which will help further people to find out about Freetrade.


My point was more related to the fact that a huge percentage of those 2 million Monzo customers get their salary paid into another current account. Does it make sense for Freetrade to pursue those same customers effectively via a third party or would it make more sense to look at the much larger market share instead? By going to the banks where the majority of customers are paid they are more likely to be able to gain active profitable customers. The time and money could be better used elsewhere at this point in time. Just to be clear I’m not trying to be down on Monzo - the same could be said for many of the other fintechs.

The stats are changing quickly - Monzo posted stats a few months ago showing the number of customers paying their salary into Monzo… it was increasing exponentially…

Personally, my wife and I are full Monzo for both joint and personal accounts. I have no complaints. In fact I would highly recommend it.


It was 30% last time figures were released but that was a while ago and was increasing all the time. I’d love the latest figures though. If you get paid into 1 account and use Monzo for your disposable spending isn’t that the perfect place to have the investing product?

I was against the idea initially but I’ve changed my mind after some debating the topic. It will normalise investing for many who are totally new to it. As Monzo has a younger demographic it will be customers investing may not otherwise reach. Offering something like the autopilot in the Monzo app will be the first exposure to investing and might encourage them to then get the Freetrade app and pick their own stocks to invest in.


At the moment it’s just rumour and speculation. It’s better, I think to look at what - if anything - comes out of a tie up then make that evaluation.

I would say, though, that Monzo doesn’t (I think) go for exclusives, so they’d be nothing to stop Freetrade tying up with HSBC or whatever your bank of choice is, too. But ultimately neither you nor I understand what’s going on in Freetrade towers, what the trade-offs for doing this would be and what the long term strategy is.

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Do they? I imagine it’s around 50% and growing now who use Monzo as their real bank account, but we don’t know precise recent figures for that, just that it is growing. I think it’s a significant and growing market (younger mobile-first bank account users), and crucially it is full of people who have money to save many of whom have not been exposed to the stock market, and will in later years be saving significant funds.

Given the different market it would IMO require different positioning/products to those available via freetrade (some sort of simpler product with tracker funds as Tom has indicated they’re looking at, and Freetrade just mentioned they are working on as ‘autopilot’). So the different market is why it’s a good complement to puling in users directly to freetrade. It also might function as a bit of a gateway to broader stock investing and picking stocks for those interested, but it could be valuable in its own right.

I wonder if it is via freetrade or will be using funds directly - fingers crossed as a freetrade investor that they decided to use freetrade to handle the investment side of things.

As @Rat_au_van mentioned above, it was 30% at the end of December:

Assuming static growth, it’d be about 40% now.

But I’m not sure this really matters. I’ve set out before why I think this is a compelling proposition for both Freetrade and Monzo. Ultimately both want to grow in a way that’s sustainable and profitable. So if this works for both of them, what’s not to like?


I don’t think it’s wise for Freetrade to dilute it’s brand by integrating with Monzo - given their look and feel is not dissimilar it would be easy to confuse Freetrade as simply an offshoot of Monzo.


That’s because Monzo are buying Freetrade for £100 million - just need that VC signed off …


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too little too soon. I rather wait and get more marshmallows

Edit: what I mean is: I think FT it’s worth less than £100M today, but I wouldn’t sell for that price today for I believe FT will be worth substantially more than that in 3 to 5 years although I don’t forget it could go bankrupt instead


Great - Freetrade will never become profitable if that happens!


Totally agree I’d :heart: to see a seamless integration between monzo and freetrade.

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Please let this happen!

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