Challenger bank Monzo is testing out a new feature using open banking.
In Brief:
-
It will allow users to transfer money from other bank accounts.
-
Login details are not needed to make transfers to and from major UK banks.
-
The idea is that money will arrive in the desired account instantly.
What does this mean?
Challenger banks are beginning to embrace open banking, with Revolut announcing in February that UK customers could link bank accounts across its consumer and business facing products. Monzo’s slightly later uptake could be down to ex-CEO Tom Blomfield’s lack of enthusiasm for open banking, as AltFi suggests.
