White label platform Seccl, owned by Octopus, is to handle the 300,000 investment and pension customers of digital bank Monzo.

The bank, which has 12m customers, is migrating its investment offering to Seccl, which will take over the provision of custody, wrapper administration and investment services.

BlackRock will continue to manage the funds available to Monzo investment and pensions customers.

Monzo customers have been able to open investment accounts and access a range of multi-asset funds within their app since September 2023 when Monzo launched a stocks and shares ISA and general investment account. The bank launched a pension tracing and consolidation service in July 2024.

Monzo said it selected Seccl as its new technology partner in January. The first assets were placed on its new, Seccl-powered proposition in May.

By the beginning of July, new Monzo investment accounts were being powered by Seccl. The migration of its existing investor base is scheduled for September.

As part of the migration, Monzo is introducing new features, starting with a fully digital accumulation SIPP (to which customers can make new contributions, as well as consolidate existing pensions) and the ability to trade ETFs.

David Ferguson, chief executive of Seccl, said: “Monzo has become one of the most well-known banks in the UK over the last decade.  

“Over the past few months, we’ve worked closely with their team to integrate our technology and get customers up and running on our platform. We look forward to watching many millions of people invest effortlessly and affordably thanks to this partnership.”

Andy Smart, CPO of Monzo said: “Working with Seccl means we can introduce more exciting features and tools that help our customers grow their money, all within the Monzo app.”

Earlier this month Monzo was fined £21,091,300 for inadequate anti-financial crime systems and controls between October 2018 and August 2020.

The FCA said the bank also repeatedly breached a requirement preventing it from opening accounts for high-risk customers between August 2020 and June 2022. 

Monzo's customer base has grown rapidly, increasing almost tenfold from around 600,000 in 2018 to more than 5.8m in 2022. However, Monzo's financial crime controls failed to keep pace with its customer and product growth, the regulator said.

Monzo said the group has since made “substantial improvements” in its systems and controls.