Syed Asghar Hussain’s Post

What's next for Monzo Bank to retain (and improve) this level of profitability? Is it entering a new market, seeking both geographic and product expansion. The UK market is very consolidated, a difficult market to break in. What are the countries and/or segment available for Monzo to break in? #financialservices #innovation #leadership

What a landmark year for Monzo Bank! We surpassed 9m personal customers and 400,000 business customers, launched game-changing new products, closed a ~£500m capital raise, delivered very robust and diversified revenues - with 2.5x growth! - and, as planned, reported our first year of profitability. I’ve never believed in the idea that a company has to choose between being either mission-oriented, or focused on business outcomes. FY2024 proved Monzo is doing both - and that our strategy of placing the customer at the heart of everything we do is working at scale. Over the past few weeks we’ve had many questions about our recent capital raise. What did investors see? What were they saying? They saw a business delivering scale, growth AND profitability. And alongside all of that - they saw the huge opportunity that is ahead of us, and the conviction that we can win it at scale. This is our biggest and best year yet and sets us up brilliantly for future success. https://https://lnkd.in/etf6T5A4

Monzo and Starling’s annual results are due in the next few weeks or so, so had a dig around in their financials and asked some people about how they’re doing for The Times. Ironically, they’ve had as much of a boost from rising rates as the big banks. Interestingly most of the feedback I got from analysts and investors was largely along the same lines: 1) Can they get more customers using them as their main account (they may need to start paying up for deposits on this) 2) Crucially, can they continue to grow, and manage, the lending side of the balance sheet. That remains a bit of an unanswered question, esp. when someone like Monzo a) Continues to make more money from transaction fees than loan interest and b) When it does lend, posts a pretty high £ of expected credit losses. Anyway, this is a subject I always love reporting on so please do take a read. https://lnkd.in/eRvnwpit

🎉 Challenger Banks are Killing It! 🎉 Exciting times for Monzo, as it proudly announced topping the 10 million personal customer mark. As it stands, one in five adults in the UK are now using Monzo, a significant milestone since its founding in 2015.🤯 This is particularly impressive given that in February this year, they had just crossed the nine million mark. 🚀 Adding two million customers in just under 12 months, is a phenomenal achievement and a clear indication of market acceptance. This bank is a game changer, disrupting the status quo through innovation, and recognising consumers' needs for speed and convenience. My message to traditional high street banks : Innovate or perish🤖🚀 However, I am sure there have been several growing pains along the way. Are there any Monzo customers that can argue otherwise?🗣️ #FinTech #BankingInnovation #STEM Dynamic Minds Recruitment

UK FinTech Nerds - I am slightly irritated... I thought Monzo is the state of the art neo-bank? So why are they loosing customers? I just looked at the Current Account Switch Service dashboard from Pay.UK, which presents the number of full account switches completing in the reporting period Q1/24. Starling and Monzo were loosing customers (net). The net winners are in Q1/24 were Nationwide, Barclays and Lloyds. ? Am I reading the report wrong? ? Do I miss something? Are Monzo and Starling still mainly used as second or third (transactional) accounts? Do people still trust the incumbent banks with their deposit more?

Some of my teams have been doing a lot of work recently on challenger banks, their challenges around growth, and what makes for a scalable customer experience. Reports suggest Monzo is expanding its current fundraising round to £500m. But will this round of fundraising signal a new direction for Monzo? On the one hand, this fundraising round represents an opportunity to continue its market share battle with the UK’s incumbent banks, leaning into its competitive advantage as a user-centric, digital-first bank. It should fuel Monzo’s second attempt at US expansion — a significant boost to those product managers and designers from the UK and US who have been entrusted with Americanising the Monzo proposition 🇺🇸 On the other hand, investors and executives will be wary of an IPO that is almost certainly just around the corner. If the bank prioritises maximising profitability, there is a good chance we could see the app offerings and, significantly, customer experience change dramatically. As Monzo enters this transformative phase, it will be fascinating to see how it balances growth ambitions with the quality of service customers have come to expect. #Monzo #Fintech #DigitalBanking #CustomerExperience

Monzo Bank has released its results and they... Are flying! 🚀 Some REALLY impressive numbers in there, including; - £15.4m profit! - growth in deposits to £11.4bn! (88% increase! 😲) - card spend increased to £47.8bn - customers increased to 9.3m (from 7.4m) What's next? 🤔 Ireland has been touted as the next European target with the USA remaining the a big strategic goal after the previous mixed success in attempting to break the market. Good look to TS Anil and the whole Monzo Bank team! 🤞 #fintech #profit #growth

So I bank with Monzo Bank. And their rise to being a successful bank tells us a lot about disruptive brands. 1️⃣ Be Distinctive Separate yourself from the bunch and stand the f⚠️k out. Monzo manages this in communication, just check out their excellent social media game, and physically, in that you can tell a Monzo card from the other side of the room. 2️⃣ Meeting users where they are rather than where you think they should be Banking was clearly a building, a cash point, a badly made digital experience. Monzo being mobile-first in approach was a winning move, as the established banks were (and in some cases still are) a few years behind. 3️⃣ Solve user problems that are minutes, hours, or days in timeline, not weeks, months or years. I've been pitched a lot of ideas, and while an idea can be good, it is hard to get traction if the problem you are solving only delivers value in the long term. When I went to create a business account with Barclays, they gave me a massive form to fill out; I didn't get around to it. Monzo, on the other hand, in the app, just asked me for my name, my business name, and my company number, and I was up and running.

Once again, Monzo Bank is expanding their latest round, securing an additional $190 million, for a total of $610 million! #Monzo, the UK-based neobank, is making waves with its latest funding round, securing an additional $190 million from investors like Hedosophia and CapitalG, bringing its total funding for the year to an impressive $610 million. Led by CEO TS Anil, Monzo has ambitious plans to utilize this investment to develop new products and accelerate its international expansion efforts, particularly targeting the U.S. market. With a valuation of $5.2 billion post-money, Monzo's success highlights the growing demand for digital banking solutions and underscores its position as a leading player in the fintech landscape. Notably, Monzo is set to launch its first pensions product within the next six to nine months, signaling its diversification into new income streams and its commitment to providing comprehensive financial services to its customers. Furthermore, Monzo's expansion plans include penetrating the U.S. market, where it aims to compete with major incumbents by focusing on product quality and customer experience. The article on CNBC in the first comment. Want to stay up to date with the market? Here my newsletter: - Linkedin: https://t.ly/s541W   - Substack: https://lnkd.in/dzfGJzmW

🚨 𝙅𝙐𝙎𝙏 𝙄𝙉: Hundreds of employees of the digital bank Monzo Bank are being given the opportunity to sell part of their stakes in the company as its valuation soars to £𝟰.𝟱𝗯𝗻. Sky News has learnt that Monzo notified staff on Thursday that it was launching a secondary share sale backed by a number of the world's leading technology investors. Sources close to the deal said employees were likely to sell tens of millions of pounds-worth of stock as part of the deal, which is being launched less than three weeks before Rachel Reeves, the chancellor, is expected to increase the rate of capital gains tax in her inaugural budget. Monzo, which has more than 10 million customers, has become one of Britain's most successful, and valuable, FinTech companies. It employs more than 3,700 people. Earlier this year, it raised more than £500m by selling newly issued shares to a group of investors led by Capital G, a division of Alphabet-owned Google: https://lnkd.in/dztmvN8F That primary share sale valued the business at £4.1bn. More info: https://lnkd.in/dTMvKNJm Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁] Nice story, Marcel. Next! [ 𝗹𝗶𝗸𝗲 ]