Monese needs paid accounts—will insurance solutions and an accessible subscription tier do it?

The news: UK-based digital-only bank Monese expanded its paid offering to include a new Essential subscription tier for £1.95 ($2.50) per month.

More on this: Beyond the addition of its base subscription plan, the neobank is extensively updating its broader paid tiers:

  • Monese partnered with Qover to roll out its new Bill Protection feature, which covers regular bill payments up to £600 ($769.42) if a customer is unable to work—higher limits are available in its two more expensive tiers.
  • Essential subscribers will receive reduced fees for international transfers and foreign exchange conversions, as well as fee-free ATM withdrawals up to £200 ($256.47) per month.
  • Monese’s Classic and Premium plans will now include purchase protection for stolen or damaged recent purchases.
  • As part of the Qover partnership, all paid subscriptions carry up to 30 days of daily payments of between £15 ($19.24) to £50 ($64.12).

The bigger picture: Monese is part of a cohort of UK neobanks bent on enticing customers through their attractive paid offerings.

  • Revolut recently updated its paid accounts with new purchase protection and insurance benefits.
  • Earlier this year, Monzo introduced its paid subscribers to new virtual card capabilities and expanded functionality for clients who connect their outside bank accounts to its app.

The big takeaway: Wider adoption of Monese’s paid subscriptions could give it a more engaged customer base to which it could introduce more lucrative business lines.

A handful of UK neobanks—Starling and Atom Bank—have flirted with profitability after offering lending products to consumers or small businesses. Monese could tap into the more than 2 million customers it has amassed since its 2015 debut to sell its own potential credit products. Its Pots solution already helps users save for certain purchases, so providing personal loans for larger purchases would follow a similar strategy.

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