Marcel van Oost’s Post

UK-based #neobank Monzo Bank has reported its first full-year pre-tax profit, marking a significant milestone in its 2024 financial results. The company achieved a pre-tax #profit of £15.4 million, a stark contrast to the £119 million loss in 2022. This success is largely attributed to Monzo's lending products and high interest #rates in the UK. #Revenue also soared by 250% to £880 million. #Monzo is now setting its sights on Europe, establishing a new hub in Dublin as part of its broader European market #expansion strategy. This move follows significant #funding rounds, including $430 million in March and $190 million last month, pushing its valuation to $5.2 billion. While a portion of this #financing is aimed at cracking the U.S. market, Monzo’s expansion into Europe signifies a strategic shift towards #markets closer to home. Monzo’s customer base has grown by over 2.3 million, reaching 9.7 million, including 400,000 business customers. The company aims to increase its customer count to 11 million in the coming year. Despite potential challenges from economic uncertainties and fluctuating interest rates, Monzo’s leadership remains confident in its ability to thrive. This positive trend among #neobanks is echoed by rivals like Revolut and Brazil's Nubank, both of which have also reported strong #financial performances recently. #fintech #fintechnews #neobanking #financialresults https://lnkd.in/gbFn_9Ee

When losses turn into profit. Bang on. Monzo Bank A shark in the UK, NeoBanks. Fintech UK neobank Monzo reports first full (pre-tax) profit, prepares for EU expansion with Dublin hub - TechCrunch The company also confirmed that it’s in the early stages of expanding into the broader European market via a new base in Ireland. ----------- Market Callouts ------------ A direct threat to market share of European neobanks or digital banks in 2024. Revolut – 1.7 billion U.S. dollars in funding. N26 – 1.7 billion U.S. dollars in funding. Wise – 1.7 billion U.S. dollars in funding. Starling Bank – 1.1 billion U.S. dollars in funding ------------------------------------------- Profitability achieved: Monzo reported its first full year of profitability, with a pre-tax profit of £15.4 million. This is a significant turnaround from a £116 million loss the year before. - Check Snippet Revenue doubled: Total revenue for Monzo more than doubled to £880 million, compared to £355.6 million the previous year. Customer growth: Monzo added a significant number of new customers, bringing the total to over 9.3 million. ~ This represents strong customer acquisition within the UK market. Deposit surge: Customer deposits grew by a staggering 88% to £11.2 billion. This indicates a growing trust from UK customers in Monzo's services. Loan growth: Monzo's loan book grew by 84%, highlighting its expansion into lending within the UK market. What's misleading? Curbing inflation caused high interest, lending contributed, and we can expect rate cuts as the UK has emerged from technical recession. It would be challenging to maintain growth in FY'25. TS Anil #businessstrategy #digitalbanking #UKFintech

🚀 It's awesome to see Monzo hitting profitability and eyeing expansion into the EU market with a new base in Ireland. 💼 💶 With their recent funding rounds and strategic moves like appointing Conor Walsh to lead their U.S. operations, it seems like they're gearing up for some serious growth on multiple fronts. 📈 Plus, their customer base is steadily climbing, which bodes well for their future. 🌟 Can't wait to see what's next for this innovative neobank! #Monzo #Fintech #ExpansionGoals https://lnkd.in/gzqTic6A

Monzo Bank announces first full-year profitability and european expansion plans with a new office in Dublin Following a period of focused growth and innovation, #Monzo announced its first full year of pre-tax profitability, at £15.4 million. This achievement marks a significant milestone for Monzo and underscores the strength of the business model. Monzo's profitability journey began early last year, fueled by the growth of our lending products and the UK's high interest rates. This momentum continued throughout the year, leading to our first full-year pre-tax profit of £15.4 million.This is a significant improvement compared to our previous losses of £119 million in 2022 and £116 million in 2023.Additionally, our revenue skyrocketed by 250%, reaching £880 million last year. However, looking ahead, Monzo's chairman, Gary Hoffman, acknowledges potential challenges. An anticipated interest rate drop might affect our performance in the coming year. He highlights "external uncertainties" that could lead to volatility in the entire banking sector. The customer base continues to flourish, reaching 9.7 million, with a remarkable 400,000 of those being valued business customers. The goal here is to further growth and project reaching 11 million customers within the next year. While potential headwinds in the form of anticipated interest rate reductions could impact this trajectory, Monzo remains confident in its ability to navigate these challenges. Finally, the company also unveiled plans for European expansion. A new office in Dublin, Ireland, will serve as a strategic hub for the entry into the broader European market. The article on TechCrunch 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

🚨 𝗡𝗲𝘄𝘀 𝗙𝗹𝗮𝘀𝗵: Monzo Bank posts first full year of profit after more than doubling revenue 🤯 The fintech startup said in annual financial results that its pre-tax profits totaled £15.4 million ($19.6 million) in its 2023-2024 fiscal year, swinging to the black from a £116.3 million loss the year prior. Monzo posted revenues of £880 million for the full year, up from £355.6 million in 2022. That marked a more than twofold increase. Monzo is one of Britain’s largest digital banks, competing with the likes of Starling and Revolut as well as established lenders such as HSBC and Barclays. Last year, Monzo reported its first month of profit. That marked a major turnaround from 2020 when Monzo warned it faced doubts over its ability to continue “as a going concern” early into the Covid-19 pandemic. The company has seen significant growth in recent years. This year, it attained a $5.2 billion valuation and it now has 𝟵.𝟯 𝗠𝗶𝗹𝗹𝗶𝗼𝗻 consumer customer (from 7.4m) and 400,000 business clients (from 200k a year ago). The long story short: ► £15.4m ($19.16m) profit  ► 2.5x revenue growth ► 88% increase in deposits (to £11.4bn or $14.51bn) ► 47% increase in card spending (to 47.8bn or $60.85bn) ► 84% increase in the gross loan book More info can be found in the document below👇 + you can find the complete report here: https://lnkd.in/eMjGRbfY Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [ 𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁 ] Nice story, Marcel. Next! [ 𝗹𝗶𝗸𝗲 ] 

Monzo Bank has raised another $190 million as the challenger bank looks to expand its presence internationally — particularly in the U.S. The new round comes just two months after Monzo raised $425 million, meaning the London-based company has now raised north of $610 million in 2024, and $1.5 billion since its inception nine years ago. Do you think that Monzo can make it in the US ? I personally don't think so. What about other international markets ? in Europe in key countries like France or Germany, or Latam like Brazil ? Isn't it too late for them to come there and compete locally with the likes of Revolut, Nubank, N26, who locally took over their market. I don't think Monzo would go internationally while applying for a bank license locally. Are we back in 2018? Again I believe going international is great but assuming you can leverage your costs, level your infrastructure, bring competition and innovation, this is what we did back in 2006 with Fortuneo Bank when we went international. What do you think Efi Pylarinou, Jason Mikula, Marcel van Oost, Bryan Clagett ?

Monzo Bank raises more than $400m to fuel further expansion on the back of record growth TS Anil, CEO of Monzo said: “We’ve built incredible momentum in the business over the past few years which has led to us reaching more than 9 million customers, turning profitable and launching even more ground-breaking products. With backing from global investors, we have the rocket fuel to go after our ambitions harder and faster, building Monzo into the one app that sits at the centre of our customers’ financial lives. Each milestone we’ve reached to this point has given us more strength and speed to make strides towards our mission - now we’ll scale to even greater heights and seize the huge opportunity ahead.”   https://lnkd.in/epTE84wf Irina Sukhikh Richard Cook Iain Laing Fernando Fanton Matej Pfajfar Dr Greta G. Mike Bray Conor Walsh Kunal Malani James Davies Antonio Angrisani Paul Bradley Nathan Woo Jamie Richardson Eleni Fragkiadaki CapitalG Gene Frantz #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews #monzo

It's Taken Revolut forever to get their #banking #license .... But it's got one now - albeit with restrictions It's been a long n tough journey not to mention frustrating one for #revolut as a #fintech to get their banking license With #revenue hitting USD 2 billion plus and #profit ( before tax) slightly more than USD half a billion - its one of the few #neobank contenders in UK mainland doing well along with Monzo Bank / Starling Bank / Wise that have survived the culling Will be interesting to see how things progress from here A. Will these neo banks / fintech remain in #UK n headquartered here ? B. When will US big cheque books come calling for #acquisition/ #buyout ? C. #Listing or #IPO in UK stock exchange or will they move overseas to the US? D. Is there space enough in the #legacy bank dominated UK market for these players to #scale n remain relevant n profitable even as legacy banks improve their #digital n #customerservice ? It's a long road from #survival to becoming a #dominant banking player for the new players but at least now more of the fintech's getting a license ( albeit restricted) gives their customers more reason to trust them with their money as deposits? Thus allowing a steadily increasing cash source these new players can begin to #lend as #loans / #mortgages n other products and #earn #interest from? #startup #business #finance

🇬🇧 Monzo be beasting though: 💰 Profits: £15.4 million in pre-tax profits (up from the previous year's loss of £116.3 million) 💴 Deposits : £11.2 billion (+88% from previous year) 💳 Card spend: £47.8 billion (+42% from previous year) 👭 Customers: 9.7 million (2.3 million new customers in just one year) 😲 Get this, 46% of new customers come from word of mouth All in a year of record high inflation, interest rates and the UK slipping into a recession in Q2 2023. When you're good, you're good. 🌍 And no, this is not one of those "Africa, you can neo-bank too!" posts, I generally think neobank models are way way better off in markets where consumers have higher purchasing power. Source: https://lnkd.in/dPppv2f2

UK digital bank Monzo Bank invests $4 million on its Irish division to push the expansion in Europe UK-based digital bank #Monzo has injected €4 million into its new Irish division, marking a significant step in its European expansion plans. This move follows CEO TS Anil's announcement earlier this year that Ireland will serve as Monzo's gateway to European markets. By establishing an EU office in Ireland, Monzo aims to extend its innovative banking services across the continent. Founded in 2015 by Tom Blomfield, Jason Bates, Paul Rippon, and Gary Dolman, Monzo has rapidly grown to serve around 10 million personal customers and over 450,000 business customers. Competing with other digital banks like Starling Bank and Revolut, Monzo has distinguished itself with user-friendly features and a focus on making money work for everyone. The bank recently reported a pretax profit of £15.4 million for the 13 months up to March, a significant turnaround from a £116 million loss the previous year. This financial upswing was fueled by a surge in revenue to £880 million and lending £1.4 billion to customers—a remarkable 84% increase. With its expansion into Ireland, Monzo is not only solidifying its presence in Europe but also setting the stage for further growth, including plans to enter the U.S. market. The bank continues to innovate with new products like Monzo for Under 16s and Monzo Pension, aiming to provide comprehensive financial solutions for a diverse customer base. The article on Crowdfund Insider in the first comment.