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Monzo was founded in 2015, set up by five former colleagues who met while working at competitor challenger bank, Starling.
Together, Tom Blomfield, Jonas Huckestein, Jason Bates, Paul Rippon and Gary Dolman started an app-based neobank aimed at customers looking to make the switch from traditional to digital banking.
Starting out life as a prepaid Mastercard and accompanying mobile app, Monzo was originally designed as a type of pay-as-you-go travel card.
In response to the notable shift in consumer banking, Monzo began to develop its offerings, evolving into an intuitive alternative banking service and becoming a strong competitor to Revolut.
As a result, Monzo has expanded into an FCA approved bank offering a wide range of UK accounts as well as loans and overdrafts.The bank partnered up with Wise, one of the biggest and most reputable money transfer companies on the market, in 2018. Since then, Monzo has continued to concentrate their efforts on improving their global payment services.
Revolut is another UK-based company that launched in 2015 and is commonly referred to as a challenger bank. having been granted an EU banking license by the European Central Bank in 2018, Revolutnow offers bank accounts to customers in Bulgaria, Croatia, Cyprus, Estonia, Greece, Latvia, Malta, Romania, Slovakia and Slovenia. However, in the UK, Revolut is authorised to handle money and currency exchanges, but it is technically an electronic money institution (EMI). Revolut intends to acquire a UK banking license in the future, but for the time being, Revolut operates as an EMI and safeguards all funds using tier one UK bank security and upholds the legal requirements and standards of the relevant e-money regulators. Unlike Monzo, Revolut does not offer financial services such as overdrafts or loans. However, Revolut exceeds expectations set by other challenger banks, by offering FDIC approved multi-currency accounts.
Despite their differences, Revolut and Monzo attract a similar crowd: technology-savvy customers who are searching for the same high standards upheld by long-standing high street banks, but presented digitally via mobile applications and online platforms. We will now compare how each brand performs in the most important areas covered by any financial service provider.
Which brand has lower fees?
For our customers, knowing which brand offers the lowest fees for international money transfers is extremely important. If it is cheaper to use the services of a money transfer company, we will always recommend this option.
Revolut apply a small fee to all international money transfers. Premium customers receive 1 fee-free global transfer every month; Metal customers get unlimited.
For standard international money transfers, Revolut customers will be charged 0.3% of the amount sent, pegged to a minimum of £0.30 and a maximum of £9.00 (or equivalent).
For SWIFT transfers, customers will be charged £5.00 when sending USD, GBP, EUR, and CHF. For other supported currencies, the fee is £9.00. Find out more here.
Other fees include:
An international payment outside of SEPA (£0.30 – £5.00 depending on size of transfer)
Currency exchange between 0.5% – 1% depending on size of transfer
Transfers conducted on weekends and UK bank holidays incur a 1% charge
Payments over £1,000 per month will incur a “0.5% fair usage fee”
✅ Verdict: Monzo wins here
When it comes to transferring money overseas, Revolut’s fee structure is more complicated and vast in comparison to the simple, low-cost fees employed by Monzo via Wise. For that reason, Monzo wins the prize for lower (and more straightforward) fees.
Which brand offers better exchange rates?
Locking in a desirable exchange rate is a crucial part of sending money overseas with a challenger bank. In this section we will identify which brand offers better deals on foreign currency exchange.
Revolut’s strongest exchange rates are given to smaller size transfers in popular currencies: USD, GBP, EUR, AUD, CAD, NZD, CHF, JPY, SEK, HKD, NOK, SGD, DKK, PLN and CZK.
During the week, when the market is open, Revolut matches the mid-market rate, with zero exchange rate spread. However, on the weekends, Revolut applies a spread of 1% to all currencies. For example, the exchange rate customers receive on a Thursday, may have changed when they log back in to arrange the same money transfer on Saturday.
Revolut suggests checking the currency exchange rate via the app before submitting any transfer requests.
✅ Verdict: Monzo wins again
There are pros and cons for both brands in this area, but Monzo’s partnership with Wise puts them ahead of Revolut due to fantastic exchange rates offered by the money transfer company.
Which brand covers more locations?
Many people decided to explore options outside of traditional banking due to their international banking requirements. We want to discover which of these two brands allow customers to freely spend and send abroad to the most places.
Revolut account holders can hold and manage 30 currencies; with over 150 destination countries supported.
✅ Verdict: Revolut supports more locations
Monzo’s location coverage includes all the major sending countries, but when it comes to sheer number, Revolut customers can send money to more countries.
Which is faster?
Depending on the requirements of your transfer, speed may be an important consideration to make ahead of time. Some customers need to lock in instant payments, while others may prioritise the total cost over transfer speed.
Revolut can transfer money to UK accounts instantly; but some can take up to 3 days to clear depending on the payment type.
International money transfers can take up to 5 days to arrive with a recipient.
Faster transfers, including fee-free SWIFT transfers, are available to those with premium monthly memberships: price plans can be found on the Revolut website here.
✅ Verdict: It’s a tie
There is no clear winner here because both brands charge more for faster services: higher fees are added to instant international transfers arranged through Monzo by way of Wise; and only premium account holders who pay a higher monthly fee are able to take advantage of the quickest global transfers with Revolut.
Which brand offers more transfer & payment options?
The specifications of every money transfer differs greatly according to the needs of the customer. Wherever and whenever you are hoping to send money to, we want to know how many options are available when transferring funds with Revolut and Monzo.
Revolut transfer options include:
Cross-border transfer: cheaper, slightly slower option
SWIFT transfer: faster, more expensive option
Payment options for Revolut users include:
Bank transfers
Credit and debit card
Cryptocurrency
✅ Verdict: Monzo provides more options
When comparing Revolut’s international remittance services, there are clearly far fewer transfer and payment options than Monzo. Wise enables Monzo to present customers with a variety of options that suit every customer’s unique needs.
What do users have to say about each brand?
Finding out what users are saying about Revolut and Monzo provides insight into the overall experience customers can expect to receive.
First we will look at the ratings given to the Revolut mobile app: iOS users have rated it 4.7 out of 5 on the App Store; Android users have matched this same score on the Google Play Store. This suggests the Revolut app works well and is easy to use.
Next we will review online feedback left on Revolut’s Trustpilot page, where the company has been given an overall rating of 4.3 out of 5.
Looking at the positive comments (87% of reviews), it would seem customers are most happy with the sign up process, travel money features, bank-beating transfer fees, streamlined and intuitive user experience of the mobile app.
Negative feedback (10% of reviews) allude to poor customer service support, unclear terms and conditions, unexplained account blockings and hidden fees.
✅ Verdict: Monzo user feedback is better
Both apps are highly rated by customers, suggesting they both function well and exceed expectations when it comes to digital banking. This being said, it appears Monzo users are generally more happy with their experience overall, compared to Revolut customers.
What brand offers better ease of use, accessibility, transparency & security
In this section we will size up the general performance of both Revolut and Monzo, to see how accessible, transparent, secure and easy to use they are.
The mobile app is highly rated across app stores and is available in 24 languages
Quick sign-up process
24/7 customer service accessible via phone or in-app chat
Cryptocurrencies can be bought, held and exchanged by Revolut users
Premium customers have access to unlimited foreign currency transfers
Revolut’s fee structure differs for each country and can be confusing when arranging transfers to less frequented countries using less commonly traded currencies
Revolut customers have access to the Financial Services Compensation Scheme (FSCS); protecting their funds, up to £85,000 per account
No physical branches, digital only
✅ Verdict: Revolut scoops up this win
Revolut wins this one due to its diverse variety and enhanced accessibility: the app is available in nearly 25 different languages, customer service can be contacted 24/7 and additional perks for Premium customers.
Additional features
Taking a final look at further enticing features that help to distinguish the two brands.
Budgeting and saving features help to round up transactions, deposit spare change into savings pots, or set up recurring payments
Cash-back incentives
Cryptocurrencies available
Phone and travel insurance
Fee-free spending abroad
Apple and Google Pay
Various memberships and cards
Recurring payments
✅ Verdict: Revolut wins this one too
Compared to Monzo, Revolut appear to have focused their efforts on innovative digital features which separate them from the crowd.
Final verdict: who is better?
After examining these two challenger banks more closely, Monzo comes out on top overall. Despite winning the final two rounds, Revolut is not quite on the same page as Monzo when it comes to international money transfers. Monzo won in the majority of scenarios outlined by this comparison, proving this challenger bank is better equipped for handling foreign currency transfers.
Although a worthy competitor, the fee structure, exchange rates and transfer speed of Revolut’s global payments are no match for the industry-leading services provided by Wise. Monzo’s decision to partner up with Wise in 2018 has put the challenger bank heads and shoulders above their competitors.
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