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