Monzo
Key Data
- Trading Name: Monzo Bank
- Legal Entity: Monzo Bank Limited
- Activities: Neobank
- Location: United Kingdom
- Regulations: Regulated by the Financial Conduct Authority (FCA)
- Key People: Tom Blomfield/Jason Bates/Gary Dolman/Paul Rippon/Jonas Huckestein
Monzo Bank Limited is a digital neobank headquartered in the United Kingdom. Founded in 2015 by Tom Blomfield and associates, Monzo has quickly gained recognition for its disruptive approach to traditional banking. The company is regulated by the Financial Conduct Authority (FCA), ensuring compliance with financial regulations and customer protection standards.
Offering:
Monzo offers a range of products and services through its mobile banking platform. These include personal and business banking accounts, as well as a mobile app designed to simplify financial management. Key features of Monzo’s offerings include:
- Real-time transaction updates and balance tracking via the mobile app.
- User-friendly graphics for understanding spending and saving habits.
- Instant payments to anyone, regardless of whether they hold a Monzo account.
- Round-up feature to automatically save spare change.
- Transaction mapping to visualize spending locations.
- Customizable bill notifications.
- Ability to add notes and receipts to transactions.
Account Types: Monzo offers the following account types:
- Personal Accounts
- Joint Accounts
- Business Accounts All account types are accessible via the Monzo mobile app and include 24/7 customer support, instant UK bank transfers, and payment notifications.
Customer Review:
Monzo has received a Trustpilot rating of 3.9 stars from over 30,000 reviews, indicating a generally positive customer sentiment regarding its services.
People
News
Monzo has surpassed nine million personal account customers, with two million joining in 2023. Despite post-pandemic challenges, the bank has bounced back, introducing new services and preparing for profitability. CEO TS Anil emphasizes Monzo’s customer-centric approach, with discussions underway for potential investment from Alphabet-backed fund Capital G.
Capital Raise and Valuation
Monzo raised around £500 million in new capital, increasing its valuation to $5.2 billion. This money will help support the bank’s future growth and new projects
Growth in Customer Numbers
Monzo gained 2.3 million new customers in the past year, bringing its total to 9.7 million. This includes 200,000 new business customers. With this growth, Monzo is now the seventh-largest bank in the UK by number of customers. Customer deposits increased by 88%, reaching £11.2 billion (Monzo) (WallStreetCollateral).
Financial Highlights
For the financial year ending 31 March 2024, Monzo reported a pre-tax profit of £15.4 million. This is the first time the bank has made an annual profit since it was founded in 2015. Monzo’s revenue grew by 250%, reaching £880 million. This growth came from various sources, including more loans and subscriptions.
New Services and Customer Engagement
Monzo introduced several new features to help customers manage their money better. These include the 1p savings challenge and a gambling block. More than 500,000 customers are now using Monzo Plus and Monzo Premium accounts
Regulatory Update
In a recent development, the Financial Conduct Authority (FCA) has dropped its criminal investigation into Monzo over alleged money laundering failings. This decision follows a thorough review, concluding that no further action will be taken against the bank
Conclusion
As Monzo meets all our compliance criteria (legal entity, reviews, regulation…) for a positive rating, we rate them on GREEN!
