Challenger bank Monzo has confirmed its two million customers across the UK will be able to take advantage of a feature allowing them to get paid a day early.
Using the feature, customers will be able to get their hands on their salary or student loan free of charge, provided it is done via the Bank Automated Clearing System (BACS).
In a blog post on its website, Monzo said that when an employer or student loan provider pays their employee or customer, it usually takes three days to reach the intended account.
As such, Monzo said, by 4pm on the day before the money is due to arrive, the receiving bank is confident the money will arrive because they can see it coming in the system, allowing them to give customers the option of an advance.
All banks have access to this information and could do the same thing, Monzo said.
The feature is rolling out from today, August 20, 2019, and is opt-in.
In March, Monzo’s chief credit officer Tim Trailor used the Credit Summit to reveal the lender’s ambitious plans to launch mortgages, loans, products for businesses and ways to help consumers rebuild their credit scores.
More recently, the challenger bank informed some customers it had been storing their PINs in an area of its internal systems that its engineers have access to.