Throughout the trial, 2,000 Monzo customers can browse personalised mortgage options on their Monzo banking app and book an advice call with a broker from Mojo.
When the consumer first opens the mortgage section of the app, they will answer about 12 questions to ensure only suitable mortgage options are displayed, before making their free advice appointment.
The suitability of the mortgage deals is decided by using data Monzo already has on the customer — such as age and location — as well as official data from the ONS, the bank stated.
If successful, Monzo plans to roll out the option fully in the next year and FTAdviser understands the challenger bank will look to expand the offering to house purchase mortgages as well as remortgaging in the future.
The trial comes after earlier this month (July 17) Lloyds Bank revealed it was working on enhancing its mobile app and was looking to offer guidance and advice solutions through the service.
A pilot launched last year allows clients to see the value of their pot when they log into their bank account online, and has now reached more than 3m customers.
Mojo provides free online mortgage advice for consumers but makes money through commission from lenders. When mortgages are arranged through the Monzo app, Mojo will also pay Monzo a commission.
Richard Hayes, chief executive of Mojo, said: “We’re delighted to announce our partnership with Monzo. It moves us a step closer in our mission to create a better mortgage experience for everyone.
“The way people get mortgages is changing and customers expect more than a basic best buy comparison experience.
“We believe advice is a key part of the process and our hybrid broker-technology proposition means businesses like Monzo can offer their customers a truly end-to-end mortgage journey.”
Mojo’s chief product officer, Eddie Ross, said through the partnership Monzo could offer its customers an extensive range of personalised deals and access to free real-time mortgage advice — all from the app.
He added: “There’s nothing else like it in the market and we expect to set a new benchmark in terms of what customers expect from a mortgage experience.”
Dan White, director of Champion Hall & White Mortgage Finance, said creating access to independent advice via digital platforms — such as banking apps — was a great idea but stressed there could be issues with the end-to-end process.
He said: “I would be a little cynical as to the finer details of the options available and whether or not this would actually be an option to the client, based on their true circumstances.
“The system would no doubt will pick up the income and expenditure of the client to check affordability, but what if the income is from a fixed term contract, agency work or even private drawings from a new ltd company?
“I would see this as a similar experience to a Money Supermarket type search where it could just be a rate chasing exercise rather than a detailed assessment of the client’s circumstances and requirements.”
Mr White was also concerned platforms such as this were trying to replace the advice journey to reduce time for the consumer, which he thought was “dangerous” in a regulated environment.
imogen.tew@ft.com
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