UK-based neobank Monzo has made its first foray into investments by launching a direct-to-consumer (D2C) service that uses BlackRock's MyMap fund range.
Monzo's eight million customers can now join a waiting list to invest as little as £1 into three MyMap multi-asset funds – cautious, balanced adventurous – which are run by asset management giant BlackRock.
Fees are 0.59%, made up of a 0.14% fund fee, which goes to Blackrock, and a 0.45% platform fee, which goes to Monzo.
TS Anil, CEO of Monzo, commented: "I am so excited to get this product into the hands of customers, at a time we know they want to invest in longer-term financial goals but do not know where to turn or how to get started.
“This is an important next step on our mission to make money work for everyone as we put the Monzo stamp on another corner of finance that is perceived as complex and inaccessible. Millions of people in the UK feel investing isn’t for them – it is now."
Monzo has long been rumoured to be building up a suite of investment products as it looks to move to longer profitability.
The bank reported a loss of £116.3m for the year up to March 2023, a fall of just 2% for the 12 months up to March 2022, however, added it is on track to reach annual profitability.
This article was originally published on AltFi