How does Monzo make money?

[alexs (Alex Sherwood)]

Monzo doesn’t have any products which generate significant revenue at the moment. Tom has been reported as saying that

@alexs

his startup bank loses on average £40 per year per user at the moment.

but

@alexs

losses on customers will be cut by about £20 a year when it launches its own current accounts early next year.

then when the overdrafts are launched

@alexs

this should take them to break-even

I’ve provided more of a summary of Monzo’s plans for it’s product strategy / business model here this morning -

Product expansion plans?

As you & Richard have mentioned, the plan is to begin offering overdrafts next year. Tom has said that overdrafts will enable Monzo to break even. Then the next products that Monzo will focus enabling users to purchase next year will be which will probably be delivered through Monzo’s marketplace. Tom has talked about Monzo’s approach generally being to enable customers to select the products they need from multiple providers, through that marketplace, rather than Monzo providing them directl…

if there’s anything else you need to know, it’s probably been mentioned somewhere else in the community so please feel free to ask