Digital bank Monzo plans to launch a new mobile network in the UK as it looks to take on incumbents such as VodafoneThree and BT-owned operator EE.
The Financial Times reports that the online-only bank is exploring launching its own digital SIM and offering monthly contracts, according to people familiar with the matter, which would diversify its revenues away from its core banking services.
Monzo confirmed to the paper that it was in the early stages of developing its proposals. “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,” it said.
The group has also made it clear that it has ambitions beyond the UK market and has made meaningful strides over the last year to become more internationally focused.
This includes a number of significant hires to lead its expansion and make a global vision a reality, particularly in its Finance team, said TS Anil (Group CEO of Monzo) during the group’s annual report presentation in June.
“The deep experience we’re adding from leading banking and technology businesses will be invaluable as we continue to scale, grow, and diversify further.”
He indicated that this would include a further push into European and US markets.
“We’ve laid the groundwork for our European expansion, and our plans are progressing well to bring Monzo to Europe. Michael Carney and a growing leadership team are driving those efforts through our gateway in Ireland. These are the first major steps on our journey to becoming a global banking disruptor.
“In the US, we’ve launched multiple new features and products, including interest-earning Savings Jars, to our growing customer base, with the team continuing to grow and invest in the product under Conor Walsh’s leadership.
“As we continue to grow, the countries may be different, but the approach is the same: customer-first thinking, genuinely innovative products, a best-in-class tech platform, and world-beating delivery,” Anil said.
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