Monzo

UK-based Monzo provides banking services to both individuals and businesses online and via a mobile app. It has its own banking license and operates under three segments: consumer banking, personal lending, and business banking.

For consumers, it offers free checking accounts and debit cards with features such as P2P payments and overdrafts. Its paid plans are priced at GBP 5 (Monzo Plus) and GBP 15 (Monzo Premium) per month that provide additional features such as premium cards, interest on checking accounts, insurance, and virtual cards. Users can also make contactless payments through Apple Pay or Google Pay using a virtual card (launched in November 2021), which is available for transactions over GBP 30 (~USD 40). In addition, it offers automated savings features, whereby it rounds up the cost of any purchases to the nearest pound and saves the change to one of the pots, savings pools created by the customer for specific requirements. Under personal lending, Monzo offers personal loans and overdraft facilities up to GBP 3,000 (~USD 3,800) as well as a BNPL product named Monzo Flex, which allows users to spread their purchases over three, six or twelve months.

The company also offers free digital bank accounts for children aged six to 15 called "Monzo for Under 16s." These accounts include features such as parental oversight, savings goals, allowances, card payments, and educational content on savings and budgeting, with a progression path to a full account at adulthood. 

Moreover, Monzo offers  an investment platform called, Investments (launched in September 2023), allowing customers to create investment pots and invest in three curated funds managed by BlackRock, each associated with varying levels of risk. Furthermore, the company  offers a pension product designed to consolidate pension contributions called Monzo Pension. It is accessible through the Monzo app, with charges that include a 0.45% platform fee (reduced to 0.35% for premium Monzo Perks and Max subscribers) and a 0.18% fund fee. Monzo Pension consolidates pensions into one of the above BlackRock-managed funds. In addition, Monzo offers travel and insurance services as part of the Monzo Premium account; it also had plans to offer more insurance offerings in the future.

Business clients receive basic features along with free UK bank transfers and digital receipts under the Lite account. They can gain access to additional features such as accounting software integration with Monzo, virtual cards, multi-user accounts, and invoicing management for an additional GBP 5 per month under its Pro account.

In FY2024 (ended 31 March 2024 ), Monzo reported a revenue of GBP 879.9 million (~USD 1.12 billion; up 147.4% YoY). In stark contrast to the previous year’s loss of GBP 116.3 million (~USD 144.5 million), the company turned a profit, reporting earnings of GBP 8.7 million (~USD 11.1 million).

Monzo saw a significant increase in deposits, with the total reaching over GBP 11.2 billion (~USD 14.3 billion), an 88% increase from last year’s GBP 6 billion (~USD 7.6 billion). Additionally, the value of card transactions rose to GBP 47.8 billion (~USD 61.6 billion), marking a 42% increase from the previous year’s GBP 33.6 billion (~USD 42.9 billion).

Key customers and partnerships

As of March 2024, the company had more than 9.7 million personal account customers, and around 400,000 business customers.