Monzo tests open banking payment function
Digital bank Monzo is trialling a new open banking-powered feature to allow users to transfer money from other bank accounts more easily.
This new way of moving money into accounts from other major UK banks represents its first major open banking play developed in house.
Users testing the product can without login details, transfer cash between different banks. This is done by first selecting the desired bank from from a list on the Monzo app and saying how much you want to move. Then Monzo will take you securely to the other bank where you approve the transfer. Money arrives instantly, in most cases, according to a blog post.
Monzo has long tested its new features among its users with its ‘Labs’ function and this new move into open banking is not yet rolled out to its four million customers.
The digital bank, which has seen a shakeup in executive leadership with the departure of its long term founder and CEO Tom Blomfield last month, had previously partnered with Truelayer for its connected credit cards feature. But, perhaps owing to a cost-cutting drive has opted for in-house development.
Blomfield has not shown much enthusiasm for open banking in recent times. Earlier this year he told The Telegraph that it had had no effect on innovation in the banking sector yet two years after launching in 2018.
“The positive effect of open banking on innovation has been nil,” Blomfield told the paper.