The boss of Monzo today gave a resounding thumbs up to the power of AI, saying generative AI can have an “extraordinary” impact on financial education while machine learning can help stamp out financial crime.

TS Anil, Monzo CEO, said:

“So for us, when I think about AI, I start with ‘what’s the customer problem we want to try and solve?’

“The power of GenAI to help customers get better educated is extraordinary.

“Because you can customise it in the context of the customer and you can deliver it in a way that the customer can process it and understand it.”

He said GenAI-powered customer assistants, using simple language, could improve financial education for many.

“Think of it how you can create delightful products for customers,” he added.

While not divulging specifics about how Monzo was using GenAI tools, Anil added:

“How do we leverage this, like any other new technology, to deliver better products at the hands of our customers? That’s the journey we are on. It’s early days in that journey. But there’s so much more to come.”

On machine learning, Anil, who was speaking at the Fintech Inclusion Global Summit, said:

“Leveraging machine learning tools to build better ways to stamp out financial crime and fraud and manage credit risk better is a big deal.”

Separately, Monzo is developing a credit product for the US market, as it looks to beef up its offensive across the Atlantic. 

The UK challenger bank, famous for its coral-coloured cards, is in the “early stages of developing a new credit product designed to improve spending rewards and promote healthy habits for paying down credit card bills”, according to a job advertised on the Monzo website.

The job advert adds: “The credit industry often causes stress with unaffordable repayment plans, hidden fees, and confusing jargon. Our goal is to offer a better solution that truly helps people achieve their financial goals.”

The job advert is for a role in Monzo’s San Francisco office.

Monzo is making its second crack on the US market, spearheaded by CEO Conor Walsh, the former Cash App executive, who took on the role at Monzo last year.

Monzo first attempted to make it in the US in 2019 but withdrew its application for a US banking licence after over two years of negotiations with regulators.

The challenger bank currently offers a checking account, money management product and savings product in the US.

The job advert also reveals Monzo’s perception of itself in the US market, likening itself to an “early-sage startup”.

The job advert adds: “Our small but mighty team operates like an early-stage startup, backed by the financial, operational, and engineering strength of a larger company.”

In the UK, Monzo launched the credit BNPL product Monzo Flex in 2021.