How does Monobank work?
Since the bank has no branches, the service is provided through mobile apps. In order to use the service, you only need to download the app from Google Play or App Store (web version is not available), take a picture of your passport and personal tax reference number and pick up the card at an outlet or have it delivered. Monobank allows checking and deposit accounts in UAH, EUR and USD, however deposits and withdrawals of foreign currency can only be made in branches of Universal Bank, Tascombank and A-Bank.
The Monobank mobile app offers a variety of banking services: from free money transfers and paying utility bills with no commission to credits and cash-backs. Cash back is a very attractive option as it allows customers to choose 2 categories of expenses and receive a cash back in the amount of 1 to 20 % from purchases.
The customer support is provided through most popular messengers in Ukraine (Viber, Facebook Messenger, Telegram) and on the phone.
Monobank uses neural networks for image recognition and gradient boosting that evaluates over 2000 parameters from customer’s telephone number and IP address to the speed of filling out the application form for credit risk analysis.
Monobank resulted from collaboration between Universal Bank JSC with the Fintech Band, an IT consulting firm providing consultancy and web-development services to retail banks, founded by former PrivatBank senior executives Dmytro Dubilet, Michael Rogalskiy and Oleg Gorokhovskyi. All of them left the largest bank in Ukraine Privatbank after its nationalization at the end of 2016.
The founders had an idea of creating a product that would have the best impact on the people’s spending capacity in order to develop small and medium-size businesses in Ukraine.
Monobank started an invite-only beta testing in October 2017 and completed it in a month’s time. It was also one of the first banks to launch Apple Pay in Ukraine.
An estimated 2 mln. USD have been invested in the development of the mobile app and around 6 mln USD of personal funds as well as funding from Universal Bank и iBox Bank have been invested in the entire project.
At the moment, the Fintech Band is planning to scale to the UK market with a similar product and later to other global marketsю.