Online bank Monzo wants to be the ‘Hargreaves Lansdown for millennials’ with plans to offer cut-price funds to its customers.
According to The Times, Monzo is in talks with BlackRock, Fidelity and Vanguard about offering low-cost funds.
The plan, reports the paper, is part of Monzo’s aspiration to become its customers’ ‘financial control centre’ and wants the funds it offers to be cheaper than Hargreaves’, though the report does not note whether Monzo has plans to offer active funds or just passives. The three named asset managers are all leading providers of passive products.
Meanwhile Hargreaves, the UK’s biggest broker, offers actively managed funds at a lower cost by striking bargains with fund managers to appear on its Wealth 50 selection.
Monzo has not revealed the fees for its investment accounts.
The bank is closing in on a £100 million funding round and has been valued at £1.9 billion.