Annual Report 2020

I think the money is provided by the government though

Monzo don’t provide business loans at all so they didn’t sign up

Afaik the money isn’t supplied by the gov, they just say they’ll reimburse the banks in the case of default


Ah interesting, I found the process for becoming a lender if anyone is interested:

Edit thought this was very interesting:
If the applicant’s business is loss-making, BBB will wish to see adequate cash
resources, a clear strategy of how the applicant plans to reach profitable status over time and how a
BBLS portfolio could be safeguarded in the event of the applicant ceasing trading, for example, via
the establishment of an arrangement with a back-up service provider.

And the government won’t reimburse the bank until they have made a reasonable effort to reclaim the debt themselves first


Not sure if change in required reserves is material. I thought that monzo’s reserves have been multiples of what required. Thus a change of what is mandatory Vs what their reserves are, doesn’t matter much.

From the Pilar 3 2020 report (

Monzo’s prescribed TCR was updated to 13.65% of RWAs plus a static add on of £21m in May 2020.

13.65% of RWAs + £21m is roughly £50m. At year-end 2020 Monzo had CET1 capital of £142m. Assuming a loss of £10m a month they would have lost £50m to date leaving only four months of additional runway.

I think Monzo did exactly the right thing raising money before it got precarious which likely would have led to a raise on much worse terms.


I love Monzo. There business account has changed my life. So so much easier than the dinosaur that is BOS

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I reckon Revolut will be more than fine, they were smart enough to integrate crypto and stocks trading into their app and during the pandemic those transactions have sky rocketed. Monzo wanted to keep banking plain and simple and it has back fired since corona broke out. I’m gutted i didn’t buy Revolut shares couple of years ago, they certainly seem more innovative than Monzo at this point.

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Welcome to the forum.


Also to remember, Revolut aren’t a bank. So a lot less requirements for protection deposits and rules of working.


In fact, NO FCSC protection. A deal-breaker for any UK primary current account seeker…:smirk:


do you think Revolut will be allowed a UK banking licence when they allow crypto trading in their offerings …I doubt it somehow, as most, if not all UK regulated banks shy away from crypto for some reason :slight_smile:

Do you think revolut will be “smart enough” to bin its crypto offerings in pursuit of a UK regulated Bank licence, or will they insist all their crypto dealers / traders are above board fine and dandy and the UK regulator will say , yeah OK now you mention it Revolut …tick… here is your licence ?

welcome to the community

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I wonder if that’s why Revolut’s CEO has left

I reckon that’s a solid “no”

A multi-faceted paragraph - with a whole bunch of “no’s” in there too…:grin:

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I think so. In its current offering all they do is let you speculate on the price within the app. You can’t send, receive or do anything at all with it.

Assume that I know nothing about crypto trading (easy assumption in this case)

What is “speculating” here then, if not a way to make Revolut (and, presumably, yourself, somewhere along the line) some moooney?

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I have very strong views on the Annual Report, and they are this:

Honestly, not bothered by anything that’s in the report. Monzo are being more open than a lot of banks are about their current situation, and it’s a terrible situation across the globe - not just in banking.

For me, my money is in Monzo (and a small amount in Starling), and if anything goes wrong with them I’ll have a new account set up within a day and use the FSCS protection to move money.

Monzo is, and will continue to be, my main bank because I find the tools, and mobile application they offer really intuitive and useful, it’s probably the best mobile app available.

But that’s just my opinion. :man_shrugging:


Yep that’s all you can do. No increased risk of money laundering or chance of use in other illegal activities.

While I don’t know anything about the BoE stance on crypto that is the reason other banks have usually given for not wanting to be involved in crypto activities.

Where did the coins come from? How did they get there? How do you make any money if they don’t leave there?

Confused of Portsmouth


It’s essentially a derivative on the price of the various cryptocurrencies they offer.

If Revolut hedges their exposure using actual crypto, options, futures or something else I don’t know but there’s already institutions with a UK banking license doing that. What’s relevant from a risk perspective is that you can’t send or receive crypto form third parties. For all I know that might be the reason they’ve chosen to do it this way.

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