The UK-based challenger bank Monzo has achieved a significant milestone of attracting a quarter of a million business customers, equating to one in 23 businesses in the UK using its services. Monzo was one of the earliest app-based challenger banks in the UK. It entered the business accounts market three years ago, one year after its main competitor, Starling Bank, which has 520,000 small business accounts, translating to an 8.9% market share.
Monzo offers a free version called Monzo Lite and a paid version called Monzo Business Pro at £5 per month, which integrates with cloud accounting tools Xero and FreeAgent, providing various features, including tax pots, invoicing, multi-user access, and auto-expert transactions.
However, Monzo has not provided details on the breakdown of free and paying customers in the 250.000 total. The bank recently launched Business Instant Access Savings, which pays a 1.5% AER interest rate per year and is paid monthly into the Pot. Starling Bank had earlier launched a fixed-interest rate savings product, which pays 2.5% on balances of £2,000 or more.
Monzo Business was launched just over three years ago and now 1 in 23 businesses in the UK bank with us. Startups and small businesses are the backbone of the UK economy, and are at heart of the nation’s innovation and growth. We’re lucky enough to see this in action everyday with our 250,000+ customers, working with them to create a business bank account and industry-first features that support them wherever they are on their business journey
Jordan Shwide, Head of Monzo Business
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