Fintech industry player Monzo, which is based in the United Kingdom, announced the launch of a new tool that consumers can use to share expenses with friends and family.
In a press release published last Monday, March 24, by the mentioned virtual financial institution, it is reported that a new tool called Monzo Split is aimed at solving a problem that, according to the digital bank, is a persistent one in the UK. In the relevant context, it is implied that consumers lose money because they feel too uncomfortable in situations where there is a need to return their money after covering shared expenses.
Monzo chief product officer Andy Smart stated that everyone found themselves in a position where attempts were made to stay on top of costs on a group trip, to manage ongoing household expenses, or buy a round of drinks, and after that began awkwardly chasing people. He noted that the digital bank adheres to the point of view that splitting costs should not come at a cost. In the context of appropriate confidence, a virtual financial institution will build its new instrument. Andy Smart stated that regardless of whether a particular user is an online banking customer or not, the digital lender will provide services related to tracking, maths, and even nudging. As part of the appropriate decision, a person will not be faced with the need to resolve financial issues that may provoke a sense of awkwardness in the context of certain moral and ethical aspects. At the same time, in this case, the individual who may encounter the mentioned feeling is striving for just goals and is not a criminal or a scoundrel.
In the press release of the virtual financial institution, it was separately noted that more than half of the residents of the United Kingdom regularly cover costs for others. Also in this context, attention was drawn to the fact that more than a third have fallen out with friends or family over asking to be paid back.
In the press release of the online bank, it was underlined that users of the new tool will be able to avoid the mentioned situations. They will be able to split, track, pay, and request payments from a single space. It is worth noting that this service will be available, including to those who don’t bank with Monzo.
The new tool, which was announced by the virtual financial institution, provides two ways to manage expenses. One of the solutions is Running Split. In this case, recurring expenses like household bills are provided. There is also a Single Split, which is designed for one-time expenses like a shared cab ride.
It is worth noting that the launch of Monzo Split is another product in the line of similar functional solutions already offered to consumers of services offered by the fintech industry. In this case, it means products intended to ease the expense of sharing among consumers. Last year, PayPal introduced Pool Money, a feature that helps customers, their friends, and relatives pool funds for shared expenses like group gifts, travel, and special events.
The financial platform Tribe Money Pools also announced the launch of its app for mobile payments. In this case, it offers a product that allows organizations, teams, and social groups to streamline shared expenses.
Bill splitting is a widespread approach to using digital wallets. This approach is especially popular among young consumers of fintech services. The results of special industry research indicate that in the United Kingdom, 19% of Generation Z and 12.5% of millennials regularly turn to digital wallets for the mentioned purpose.
The younger generation embraces advanced functionality. As part of implementing the relevant process, they are changing the practice of how financial exchanges happen among peers. It is also worth noting that in this case, digital wallets become indispensable for everyday financial management.
As we have reported earlier, Monzo Customer Base Exceeds 10 Million.
