UK digital banking group Monzo said it is officially launching on Tuesday in the Republic after 100,000 customers signed up to a user waiting list.
The company is starting off with offers of free current and savings accounts for individuals and a selection of free business accounts, it said in a statement.
Its personal savings accounts allow individuals to save as little as €1 and access their money any time and get up to 1.6 per cent annual interest.
“As our first market in Europe, we’re excited to bring a bank that people genuinely love to Ireland, delivering the experience we’ve built serving millions,” said Michael Carney, EU chief executive at Monzo, in a statement.
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“Our mission is to make money work for everyone, and we’re bringing that to Ireland today with free everyday banking and a simpler, smarter way for people and businesses to manage their finances.”
Each account will come with an Irish international bank account number (Iban) – similar to other mobile banks targeting customers in the State such as Revolut and N26.
Speaking to The Irish Times on Tuesday, Carney said Monzo’s UK customers say they “love banking” with the company, “and that’s a big gap in the Irish market – people don’t say they love their bank”.
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The former executive at payments giant Stripe said Monzo’s “customer-centric” approach sets it apart from its rivals. Users can speak with customer agents or have their queries answered via the app, email, or chatbots.
“On our cards and in the app, you’ll see our number,” Carney said. “You can call us. It’s 24/7. We say, if money is keeping you awake at night, we’re awake. That’s what people want.”
Founded in 2015, Monzo has more than 15 million customers, including 800,000 business customers in its home market in the UK.
It received its Irish banking licence in December, and plans to use the Republic as a launch pad as it ultimately targets offering services across the European Union (EU).
While the rise of digital challenger banks has been meteoric, 89 per cent of consumers in the Republic continue to use one of the State’s three main banks, AIB, Bank of Ireland and PTSB. The three pillar banks recently partnered up to create Zippay, an instant payments service they hope can rival the likes of Revolut.
Carney said: “We’re still at the very early innings on digital transition [ ...] But if you look at the trend and the consumer demand, people want digital. That’s one of the reasons we looked at Ireland initially – because people actually want digital banking.”
He said the question now is whether the traditional banks can “innovate” to keep up with that demand.
Elaine Deehan, country manager for Ireland at Monzo, said: “Our research is clear, Irish customers want free everyday banking, money that works harder for them, a partner they can trust, and a bank that speaks their language. Monzo combines the best of banking and technology with industry-first features now available to Irish customers.”
