Monese Review 2021 – Is it The Best Challenger Bank?

Utility bills to prove your address, credit history to show you worth lending to are some of the usual things you expect when opening a bank account, but what happens if you don’t have them? For example, you live with your parents and don’t have any bills in your name, this sort of simple situation can make getting an account unnecessarily difficult. The good thing is you still have other options. In the UK, popular challenger banks are breaking down those barriers and addressing some of the historic pain points that consumers have typically have about traditional banks.

In this Monese review, we look at one of the first online-only banks in the UK that does not require proof of address to open accounts. We also go much deep and provide a detailed overview of their core services.

What is Monese?

Monese is a UK app-only banking service that allows European Economic Area residents to open current accounts and perform all banking functions. It was the first 100% mobile-based current account in the UK and now, it is possible for everyone across Europe to open a UK current account in just a few minutes. Monese has been a success, winning the Best Challenger Bank Award at the 2016 European FinTech Awards. In 2017, Monese customer transactions surpassed half a billion pounds, today, five years after it was started; it has amassed over a million signups with around 3000 people joining every day. Monese customers move over $3 billion each year through their accounts.

Monese was founded by Norris Koppel after he moved to the UK from Estonia in 2014. With no UK credit history or utility bills to prove his address, he was unable to open a bank account, which also made it hard to receive his salary or rent accommodation. From this experience, he founded an inclusive, instant and on-demand banking service.

Monese offers a current account accessible for everyone, whether you have the utility bills or a perfect credit score or not. According to Monese, it aims at helping the 90 million people across Europe who are financially excluded because the banks cannot identify or credit score them. It also tries to avoid the restrictions and hidden fees that are all too common in traditional banks. Without legacy systems and physical locations, it is able to cut costs and offer free accounts. It is clear that the days of leaving a high street bank without an account are over, but is Monese for you? Read on!

Pros and Cons

How does Monese work

Monese is a company that offers current accounts and money transfer services, like other challenger banks. It is registered as an agent of Prepay Technologies, an electronic money institution authorized by the FCA for issuing of electronic money and payment instruments. Monese works like traditional banks but in a more streamlined way. It is app-based, therefore, its functions are online only. When you sign up, you get a current account, complete with sort codes and an account number that you can control entirely from your smartphone.

Monese also issues you with a MasterCard debit card that you can use for global payments and withdrawals, which is a great deal for frequent international travelers. With the free Simple plan, you get up to £200 free in ATM withdrawals, in the Classic plan you get £800 free AM withdrawals (per month) and 2% fee thereafter. With the Premium plan, you get unlimited free ATM withdrawals. If you are a frequent user who uses cash top-ups or withdraws frequently, the Premium may be the best package for you; however, it is also the most expensive at £14.95 per month. You also can add a Eurozone account at the click of a button.

You can also use Monese to move money between accounts, receive salary, pay bills, make UK bank transfers and or send money abroad. Monese allows you to set up direct deposits for your frequently used services and utilities. Monese-to-Monese payments are free and happen in real-time and there are no limits on how many transfers you can make. For sending money abroad, you will be charged up to 2% fee when sending to non-Monese accounts (£2 minimum fee) for currency exchange depending on your plan. Monese partners with PayPal for global payments, so you can pay or view transactions directly on the app.

With Monese, your deposits are not protected by the FSCS which guarantees up to £85,000, instead, they claim to guarantee 100% of your money. Since Monese is not a bank, they hold your deposits at major banks, separate from their own funds and they cannot reinvest it. Therefore, if it goes under, your money will be 100% protected. Monese is regulated by the FCA and adheres to their security guidelines. If you have been unable to open a bank account like Koppel, this may be your best option.

Getting Started with Monese

Download the Monese app from the App Store or the Google Play Store. Ensure you have a valid email address that is not associated with another Monese account and a mobile phone number capable of receiving text messages.  Also, ensure you have your identification documents and be ready to take a short selfie video for verification.

Open the app and follow the instructions provided. In some situations you may be required to do a video call, this service is available Monday to Friday 8 AM to 10 PM UK time and 10 AM to 4 PM on Saturdays. You will be required to have your identification documents. Overall, It will take you only a few minutes to open an account on the platform.

Types of Current Accounts available on Monese

Monese offers three plans, one free and two paid plans; they include the basic Simple Plan, Classic plan and the Premium plan.

Simple Plan

This is the basic free current account provided by the platform. With this account, you get a free contactless debit card, up to £ free ATM and cash top-ups, 2% fee after. £2,000 free foreign currency card spending with 2% fee after, free and instant foreign currency transfers to other monese accounts. When transferring to non-Monese accounts, there is a 2% fee (£2 minimum). The account is free and has no monthly fees. It is great for users who just want a current account for basic use.

Classic Plan

This plan is for those who want to use Monese as their main account or who frequently use cash and international cash transfers. It has a £4.95 per month fee and you get more perks than the Simple Plan. With the Classic Plan, you get £/€ 800 free ATM withdrawals and cash top-ups every month before the 2% fees apply, £ 8000 allowance for free foreign currency spend globally before the 2% fee kicks in, and, 0.5% fee for international transfers in foreign currencies.

Premium Plan

This £14.95 a month plan is the ultimate Monese account. It is best suited for people who spend a lot across different countries and currencies or transfer large amounts. Once you pay the monthly subscription fee, all services through the month are free. You get free global ATM withdrawals and cash top-ups, free international transfers in foreign currencies, and unlimited fee-free card spend in foreign currencies. All premium plan customers enjoy priority customer support on top of the free allowances and features.

Student account

Students in European universities can open an account and get a Monese Classic Plan that is normally £4.95 a month, free for a year. This includes both UK and Eurozone accounts at no extra cost. To access this account, apply for any Monese plan (better if you use your university domain email address), when your account is open, prove your student status by sending your documents (Student ID or university acceptance) in-app. Monese will be in touch with you and will upgrade your account to the free Classic Plan within three working days.

Business account

Monese offers a business account that provides free local payments and low priced international transfers. For the £9.95 per month fee, you get a UK business account and a Plus/ Classic personal account. The Basic Plan has a maximum account balance of £50,000 while the Business Plan has a £100,000 maximum balance.

Monese debit cards

Monese introduced their new card designs in July 2019. The contactless cards match the pricing plan you are on rather than the currency they are linked to. The Simple Plan account cards sport a bright pearl base and a metallic Monese logo in blue, the Classic card comes in the Monese trademark blue and has a silver foil for the Monese Logo. The premium card comes in a deep midnight blue color with a textured sparkle.

Monese features

Multilingual Customer support

Monese offers customer services in up to 12 languages via email or chat. You can contact them in English, German, French, Brazilian, Bulgarian, Italian, Portuguese, Spanish, Czech, Romania, Polish, Lithuanian and Turkish. If the communication fails, Monese will go back to the default language, English.

Real-time notifications

Monese sends you instant notification on your mobile every time a transaction is completed. You are able to weed out and stop fraudulent transactions as you can see every time you send or receive money.

Apple and Google Pay support

Monese added Apple Pay and Google Pay for personal in the UK and European cards. This means you can pay using your mobile phone around the world where the two modes of payments are accepted.

Complete control over your debit card

If you suspect that your card has been stolen, misplaced, or just to minimize spending, you can easily lock or unlock your card in the Monese application. You can also order a new one easily from Monese.

Budgeting features

Monese account holders have access to features that can help them budget more effectively. The insta-balance feature displays a real-time view of your account balance; this lets you know how much you can spend. There is also a balanced graph in the application that shows how you spend money. Monese does not spend more than you have in your bank account.

Money transfers

Monese offers a full current account, you can, therefore, receive money, pay friends, send money to family or pay bills with bank transfers. For foreign transfers, Monese uses the interbank rate like Revolut. If the receiver has a Euro account, you can use SEPA transfer and the money will reach them by the next working day. Monese to Monese transfers are instant and free of charge. It also allows you to set up direct deposits and standing orders.

Spending Abroad

You can open a Monese account anywhere in Europe, this gives you a Euro and UK account which means you will be able to access your money easily wherever you are. The Monese debit cards allow you to withdraw from ATMs worldwide.

Using Monese with PayPal

PayPal was named as an investor in Monese’s 2018 Series B round, they have since collaborated to enable Monese users to link their accounts to PayPal, manage and view PayPal transactions in the Monese app and seamlessly add the Monese card to your PayPal digital wallet.

Avios 

You can earn Avios points by spending with Monese at selected outlets. The Avios and Monese partnership allows you to collect the loyalty points that you can use on flights, hotel bookings, and other activities.

Request payments 

Monese has a feature for requesting payments for both personal and business accounts. When you request for payment, the request will stay there for 10 days or until when it’s paid or canceled. The person you are requesting from will receive a text message and when they tap the notification, they will be directed to a simple payment screen. If the user is not a Monese user, click ‘add new’, fill in their name and phone number, they will receive the request and your referral code which allows them to easily open an account and both of you can get a cash bonus.

How to top up your account

There are several ways to add money to your Monese account including:

Monese Fees

The bank has three pricing plans, Simple, Classic and Premium. The Simple plan has no monthly fee, Classic is charged at £4.95 or €4.95 (if you choose the UK or Euro account as your primary account), and the Premium plan charged at £14.95 or €14.95 per month. Business accounts are charged £9.95.

Other charges include £/€200 free ATM and Cash top-up allowance per month after which 2% fee kicks in for the Simple plan, £/€800 for the Classic account and free for the Premium. £/€2000 or £/€8000 free foreign currency spending allowance per month for the Simple or Classic plan after which 2% charge per transaction is used. There is also a 2% fee for international foreign currency bank transfers in the Simple Plan and 0.5% for the Classic plan. All the services are free for the Premium plan users.

Monese Review 2021: Verdict

Monese is a great option for people with no credit history or UK address or those who have been unable to get a bank account. For frequent travelers or people who use their accounts much, the Premium plan is the perfect plan, as you will be able to save money on ATM withdrawals, top-ups and transfers. For those who just want a basic account or have no plans of traveling, there might be other better options.

FAQs