Monzo, the Nation's favourite digital bank and best known for its hot coral bank cards and slick app, could also be your phone network soon.
The challenger bank has confirmed plans, as reported by The Financial Times, to launch a mobile banking service in the UK. It won’t build its own towers; this will be an MVNO model, meaning it runs on another operator’s infrastructure.
No word yet on launch dates. No confirmed tariffs either, as Monzo is still in the "early stages", but that hasn’t stopped speculation. Monzo has built its brand on transparency, transparent fees, and a user-friendly design.
If those benefits carry over to its 13 million customers, it could have a “significant” impact on the UK mobile market, James Robinson, senior analyst at Assembly Research, said.
Mobile bills are one of the most stubborn monthly expenses. “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,” a spokesperson from Monzo said.
Ofcom puts the average spend at £20–£25 a month for SIM-only or contract plans. With inflation still biting, cheaper or more flexible options are welcome.
One likely feature is integration with the Monzo app. Imagine your data usage alongside your budget pots and savings goals. That kind of visibility could make it easier to stay on top of spending.
Some analysts suggest Monzo may reward existing customers with discounts or bundles. At this point, though, that’s just talk. Nothing official.
The move is yet another way Monzo and other digital banks are combating the control of the traditional big four lenders, and if the bank delivers on its promise of clarity and fair pricing, it could be a genuine money-saver.
