The feature, named “Investments,” will allow customers to invest in several funds managed by asset management giant BlackRock.

The launch is scheduled, enabling users to invest with a minimum amount of £1.

This move puts Monzo in competition with well-established banks like Chase, which offers online investment management through its subsidiary Nutmeg, asset management firms, and younger startup competitors like Chip, Moneybox, and Plum.

Monzo already allows its customers to save their money in interest-bearing savings pots. However, this is the first time the company is venturing into the world of investing.

The application process is relatively straightforward. Customers will be invited to join a waiting list to gain access to the product. Eligible users who have joined the waiting list will then be invited to create an investment fund.

They will then be directed through several screens to learn more about the product and choose from three funds selected by BlackRock based on different risk levels.

The choice is divided among three funds managed by BlackRock: Cautious, Balanced, and Adventurous.

On the cautious end of the spectrum is a low-risk, low-yield fund; the “balanced” fund has moderate risk and reward, while the “adventurous” one involves a higher allocation with much greater potential for returns.

Source: CNBC.com