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The British digital rival bank, Monzo Bank, released its first full year of profitability results on Monday. Since 2021, there has been a decline in fintech investment, which has compelled neobanks to prioritise profitability above quick growth. The most popular banks in Britain are seeing more and more competition from digital-only banks like Monzo and Starling Bank, whose appealing mobile-only products have drawn millions of customers. In addition to aiming for US development, Monzo stated that it is now in the early phases of establishing an office in Ireland as a means of boosting business within the European Union. “This was a landmark year of record growth for Monzo. I’ve never believed in the idea that a company has to choose between either being 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. We’ve achieved scale, growth, and profitability, and we have all the right components to seize the huge opportunity,” Chief Executive TS Anil commented.

This milestone is a mixed signal for me. While it highlights Monzo's potential and growth opportunities, the decade-long journey to break even and higher provisions for bad loans suggest caution. Many investors typically seek break-even points within three years, raising questions about the sustainability of the current fintech model https://lnkd.in/dTCjbFz6

WHAT A WAY TO START THE WEEK! 🤩 Monzo Bank have announced their first FULL year of PROFITABILITY 👏 🏦 📈 Achieving a pre-tax profit of £15.4m for the financial year ended 31 March 2024, FY24 saw Monzo scale AND invest in new revenue streams after MANY game-changing products and features 💰 📲 The digital bank have recently raised around £500 MILLION of new capital from leading global investors led by CapitalG, Alphabet Inc.’s independent growth fund and Monzo ALSO have continued to help customers manage their money in the face of persistent economic challenges and the ongoing cost-of-living crisis 👨💻 TS Anil, CEO of Monzo, said: “This was a landmark year of record growth for Monzo. We surpassed 9m personal customers and 400,000 business customers, launched game-changing new products, closed a £500m capital raise and, as planned, reported our first year of profitability. I’ve never believed in the idea that a company has to choose between either being 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. We’ve achieved scale, growth and profitability, and we have all the right components to seize the huge opportunity ahead.” Read more on the link below! 👇 #monzo #digitalbank #ukfintech #fintech #fintechnews #profitability #fianncetechnology #mobilebank #banking #financialservices

Monzo Bank Announces First Full Year of Profitability Amid Record Growth and Accelerates International Expansion Plans TS Anil, CEO of Monzo, said: “This was a landmark year of record growth for Monzo. We surpassed 9m personal customers and 400,000 business customers, launched game-changing new products, closed a £500m capital raise and, as planned, reported our first year of profitability. I’ve never believed in the idea that a company has to choose between either being 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. We’ve achieved scale, growth and profitability, and we have all the right components to seize the huge opportunity ahead.” https://lnkd.in/eKJ_2GnK #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

🚨 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 ] 

It's been a decade since digital banks (Fintech companies) became a topic and a 10 year denial of Traditional financial companies (Banks) about the disruptiveness is slowly turning into acceptance. The change is evidenced by two key factors 1. More and more digital banks are becoming profitable. 2. More and more Traditional Banks are creating digital banks and usually they make sure the new company is not directly associated with the bank, they even keep the management and operations completely separate so they have a chance to be more agile and have less beurocracy otherwise they will be "eaten alive" The above is already a reality for Retail banking. Buckle up, next stop is Corporate Banking :-)

Profitable Zopa Bank has a fraction of the customers of Monzo, Revolut and Starling — CEO Jaidev Janardana says that’s by design. Digital bank Zopa Bank to expand into current accounts, investments and SME lending, focusing on increasing average revenue per customer rather than total customer numbers, its profitable consumer-focused neobank status, and its strategy of offering competitive interest rates to incentivize customers. Zopa's history as a peer-to-peer lender transitioning into a full-service digital bank, its reliance on lending for the majority of its revenue, and its future plans to diversify income streams through new products and partnerships are significant factors to consider. Zopa's cautious approach to geographical expansion, potential future IPO, and optimism about the UK's economic outlook are notable in understanding the company's strategic direction. Check out the full pice 👇 by Tom Matsuda Sifted #bank #fintech #sme #lending ❤️ Enjoyed this? Share the love with your network! 🗣 Have insights to share on this topic? Please comment! 🎉 Sponsorships and content with Sifted? I'ma message away! Let's get it 🚀 https://lnkd.in/erYTPimr

Monzo Bank is profitable at last! "Digital bank Monzo has reported its first annual profit since launching nearly a decade ago, as the London-based fintech benefited from higher interest rates and growth in transaction fees and subscriptions. The neobank, founded in 2015, reported a £15.4mn pre-tax profit in the year to the end of March, up from a £116.3mn loss the year before. Revenue more than doubled in the period to £880mn, as the fintech’s net interest income — the difference between what banks pay on deposits and what they earn from loans — rose 167 per cent to £438mn thanks to higher interest rates. Monzo’s revenue was also boosted by transaction fees, with net transaction income growing by £60.9mn to £167mn despite customers spending less abroad due to the cost of living crisis. Revenue from its subscription plans including Monzo Plus, Monzo Premium and Monzo Business grew to £27.4mn, up from £19.5mn the previous year.£27.4mn, up from £19.5mn the previous year."

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

💰 Monzo Bank hits a major milestone by reporting its first full year of profitability, with a pre-tax profit of £15.4 million for the 2023-2024 fiscal year. This marks a significant turnaround from the previous year's £116.3 million loss. The #fintech's revenues more than doubled to £880 million, driven by #growth in lending, subscription models, and an expanding customer base. Despite regulatory scrutiny and economic challenges, Monzo continues to thrive, eyeing international expansion and a potential public listing. https://lnkd.in/e_wKZMY3 #Fintech #Monzo #Profitability #DigitalBanking #Innovation #BusinessGrowth #FinancialServices