More than 200,000 customers rushed to sign up to Monzo’s new investment service waiting list in two days, the bank claims.
Last week, Monzo announced it was launching 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 ‘over the coming weeks.’
Queueing up: 200,000 would be investors have joined the waiting list for Monzo’s investment service
Fast forward a week and the service now has a 200,000 strong waiting list, the Financial Times has reported.
Those who sign up to the waiting list on the app can see how many people have done the same.
The digital bank, with around 8million UK customers, 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 sign up for a digital bank.
Jason Hollands, director of Bestinvest points out that: ‘The 200,000 people who have joined the waiting list represents 2.5 per cent of Monzo’s customer base.
‘But no commitment is being made at this stage – and it is very easy to join the list – so it remains to be seen how many eventually go ahead.
‘What this does suggest is that banks that have very large and loyal customer bases are sitting on an opportunity, potentially tapping into people who may not be inclined to shop around and want something simple.
‘New client acquisition can be costly for businesses targeting clients who may have relatively modest amounts to invest, which is why traditional wealth management businesses are focused on wealth individuals and families and some online platforms are now pouring considerable spend into television advertising.’
Investors with Monzo’s Investments can choose between three profiles named ‘careful’, ‘balanced’ and ‘adventurous’, which come with different levels of risk.
There is a fee of 0.59 per cent of the investment value, which includes a 0.14 per cent fund fee and 0.45 per cent platform fee.
For example, a £1,000 investment would have a fee of £5.90 a year. Money can be withdrawn at any time without incurring any charges.
