UK-based challenger bank Monzo is set to relaunch paid-for accounts in the first quarter of 2020 after having ditched the service last year, reported Reuters.
Last year, the bank cancelled its paid-for premium Monzo Plus service only months after its launch due to poor customer feedback.
The product offered travel insurance, and discounts at participating stores, among others.
Monzo founder and CEO Tom Blomfield said: “We learned that things that seem a universal truth when you are 50 people, launching iteratively as no one is paying attention, when you do that with 3.5 million customers it’s foolish.”
At the same time, Monzo will reportedly recruit up to 500 people this year.
Blomfield said that the hiring will increase the bank’s employee headcount to over 2,000.
The report is a silver lining for Monzo, which has been saddled in troubles lately.
Recently, the bank had to face the wrath of customers who said that the bank froze or shut down their accounts without warning.
Monzo registered a loss of £47.2m in 2018. According to the Reuters report, the bank intends to become profitable after three to four years, which is also the time when it plans to float.
The digital bank is reportedly in talks with investors to raise £50m-100m and targets 5.5 million users this year.
“Our real focus is on monetisation. “We’re looking to drive revenue and do it in a way that’s transparent and fair,” Blomfield noted.