UK challenger bank Monzo is diversifying its product suite with a new pension consolidation solution that tracks old pensions and brings them into one fund.
The launch of the product comes after research from Monzo reveals that more than half of UK adults (51%) don’t know how much they have saved for retirement with 64% not having consolidated their pension pots.
To get started, customers share certain details and names of ex- employers and Monzo handles the rest – tracking down and combining old pensions into a BlackRock-managed retirement fund.
Clients are to pay a 0.45% platform fee – 0.35% for premium Monzo Perks and Max subscribers – and 0.18% fund fee.
Andy Smart, GM of savings, investments and pensions at Monzo, said:
“We know from speaking with our customers that visibility and knowledge of their pension is low and anxiety is high – so we’ve designed Monzo Pension to solve exactly these pain points. Managing multiple pensions and planning for retirement is unnecessarily complex, which means people default to avoiding it and end up on the back foot. Now our customers can get on the front foot and keep tabs on their future financial goals alongside the rest of their finances in the Monzo app – planning not just for today or next month, but for years to come.”
Registration is open with the product gradually introduced to customers in the next few months.
As covered last month, UK’s digital bank Monzo has released its 2024 financial results.
Monzo announced its first full-year pre-tax profit.
The Fintech firm also revealed that it’s currently in the early phases of expanding into the wider European markets through a new division in Ireland.
The update from Monzo has been announced after the neobank secured considerable new funding, beginning with $430 million in March of this year. This was followed by an additional $190 million this past month at a $5.2 billion valuation.
A considerable portion of this funding is meant for supporting its business expansion efforts in the US markets. This is reportedly a maret that Monzo has been looking to tap for several years.
This past October, the Fintech firm appointed another Chief Executive Officer for its US-based business operations. Monzo announced Conor Walsh (from Block’s Cash App) as its CEO.
Now, Monzo intends to expand into markets that are situated closer to its head offices. This, as the Fintech looks to enter a new gateway in Ireland. With this launch, Monzo will establish a new location in Dublin. However, the firm has not shared a definitive timeline for this at the time of writing.
