Monzo, the London-based digital bank with over 13 million UK customers, has confirmed it is in the early stages of developing a mobile service. The bank plans to offer monthly mobile contracts through digital SIMs, aiming to address what it described as a 'pain point' for customers.
This marks a significant step in diversifying Monzo's revenue, which is still largely dependent on core banking services. The company is expected to operate as a mobile virtual network operator (MVNO), meaning it would lease infrastructure from major providers rather than build its own. This model allows MVNOs to compete on price, often undercutting established brands.
