I’m not sure that’d ever result in an outright acquisition though. I can’t see big tech wanting to deal with the intricacies of regulation and licences. I suspect they’re happy to play in the margins.
I might be wrong: acquisitions in key markets (US/EU) might make sense but probably not outside of them. I can see significant investments and strategic partnerships though. Which brings us back to Curve and where you started!
I’m sure the big banks would be willing to partner Apple on Apple Cash though it’s a niche product.
It won’t be with Monzo though for two reasons a) Monzo have shown no interest in wholesale services unlike Starling and b) Apple is likely to want one partner across the whole of the EEA not individual banks in different countries.
Not sure what the figure is now but in 2011, 17% of UK bank accounts were packaged - so it’s not a small percentage.
Monzo’s initial figures for Plus are flattered by the free trial, brand enthusiasts and customers trying it. It would be interesting to see what the longer term figures are as well as the number of cancellations etc
On Premium, after delaying the launch, it’s ironic they did so on the eve of another national (England/Wales) lockdown given their stated reason for the original delay was to do with the travel insurance
Re big banks, they’d buy it for the customers, customer growth, and deposits. Banks have a long history of paying for customer acquisition, and of buying out other banks to acquire them too.
They’d most likely run it as a separate company as it is now, but use the deposits to lend out. Monzo may not be able be to make money by lending out the deposits, but high street banks certainly can.
Clydesdale never had a jumping chicken.
12% in 2015. Its been falling for a while, along with the average earnings per custom (in 2015 it was somewhere between £100 and £200 per annum).
It’s worth highlighting that the figures from that report, only use accounts with over £500 in deposits/income per month IIRC.
Noooooooo !!! 
(I hated the f*#%cking chicken with a passion - and frankly, I still do 
).
Just guessing but assume that also includes packaged accounts that are effectively free if you fit certain criteria (e.g. minimum pay in, direct debits)?
Packaged accounts generally cost, but must have added benefits such as insurance.
Reward accounts are counted differently (and accounted for ~9%)
It’s amazing how some people think that Plus and Premium will put Monzo into profit. Not even remotely close. They key is to get more people depositing salaries, and whilst a packaged account might contribute a touch, more innovative features would likely add more perceived value.
‘Get Paid Early’ is a total gimmick but it showed innovation and was a great marketing tool. It feels like Monzo are out of ideas. Fresh blood is required, and they seem to have a lot of it in the last six months. It is just a shame that non of them strike me as innovative, more of boring old bankers.
There have been several acquisition offers in the past. Including from well respected tech companies. I think Monzo can weather the storm, but if not, I personally think some of those companies would still be interested. It’d be a different kind of conversation, but you have to remember that those conversations were happening before when Monzo was not profitable per customer.
Prior to the pandemic, Monzo was profitable per customer, although not yet profitable as a business. So it’s not exactly unachievable to get back to that point.
a large non UK bank Looking to get a foot hold in the UK would be a perfect partner as they would immediately get millions of new customers to sell financial products to and they would have the cash to turn on the lending taps so that Monzo could offer loans, mortgages, credit cards, insurance etc
My hope is a large US bank will gobble up Monzo and leave it to carry on as it is but with a load of money behind it so it can start offering profitable financial products.
Firstly ‘profitable per customer’ is actually inaccurate. Per customer Monzo loses a lot of money. What you mean is that there’s a positive gross margin, or in tech speak there’s ‘positive unit economics’.
This is a fairly elusive measure. Popular with tech companies but not always realistic. I get the theory, you are profitable ‘per customer’ so if you scale enough, the business as whole will make profit.
But really business doesn’t often work like that. Your indirect costs may not scale precisely with customer growth, but often they still scale. Monzo shows this, it’s still hiring engineers, HR people and other indirect functions. It’s fixed cost base is still growing along with its customer numbers.
Monzo is as far off net profitability as it ever was. Unit economics is really a measure that helps raise money with VC firms and little else. A positive gross margin and a positive net margin are just two different things.
I’ll probably get shot down for this, but how about a takeover/acquisition by N26?
Personally, I would love to see them back in the UK.
N26 showed promise but lacked commitment. As soon as Brexit was announced, they had their excuse to leave.
If you remember the video, taken in Berlin, of Blomfield, Stalf from N26 and that chap from Revolut, the chap from Revolut came across as disinterested and aloof, Blomfield was apologetically awkward. Stalf was charismatic and businesslike. In fact N26 came across best, I thought.
N26 is still pre profit so it can’t take over anything. They don’t have a cent of their own money.
It’s backers could front the cash to buy Monzo out though. But then if they’d already staked a no load of cash in the winning horse why would they try and buy one of the others?
Are there many who actually think this? I don’t think so, I think you’ve just pulled that out of the air, and that most just see packaged accounts as one approach along the way to becoming profitable.
The lack of a package account was previously shown to be a blocker for people doing this. So Plus/Premium has a dual positive effect, the first bringing more people into the fold and the second getting them and existing customers to pay for it.
Of course there is still more to be done.
In the meantime, the counter for people with a Monzo account is getting back to prior pandemic speed bit by bit. I check the landing page every now and then and am happy to see that they are amassing more and more new customers as the day goes by.
4,745,197 people as of this msg
Monzo acquisition likelihood now 0% with vaccine.
Revenues return back to pre-Covid levels by Q2 next year, likely profitable or very close to.
Ability to raise some more cash at more favourable terms - off to the races.
What?