Monzo as a going concern

They are, as others have pointed out, but the statements here mean that there isn’t sufficient evidence to conclude that they are with reasonable assurance.

The Twitter thread from the ex auditor below is is Quite useful on the generic ideas of going concern. I’m not sure the thread from the Fintech consultant is as useful in technical audit/accounting terms.

Of course it is all a personal judgement call, but personally I take this as a sensible warning from management and the auditor. There is enough detail here to enable us all to make those judgements.

I’d encourage people to read the detail in the annual report and not rely on hope or press comment.

I love Monzo and they’re my main bank and have been for ages. I have moved a chunk of my savings out though, as a precaution. It will likely come back once the risk reduces again. Don’t want to end up with hassle - I’m aware it’s protected by FSCS etc…

Seriously.

2 Likes

TIL I can edit the title of someone else’s thread title (I haven’t). Why is this a thing? I need to dabble with discourse more.

1 Like

All level 3’s can

tbf in all the the thread name madness, i think the titles better as a question

4 Likes

TIL I’m level 3! I presume that’s what the number next to my N references? I just assumed that was my account age in years. :exploding_head:

Edit: definitely not my account age in years given that I only signed up in 2019! Not sure why I thought that.

I’ll withdraw from this discussion now, as I don’t yet have anything to add that contributes to the topic. Thanks for the enlightenment.

1 Like

I too have monzo plus, and use it as main account.

No, unlike you I am not concerned at all.

Monzo has more deposits with Bank of England and UK government treasuries to cover all balances in the current accounts.

If monzo were to start shutting down, administrators will be called in and things will most likely continue operating as normal. Thus you would be able to continue using your account as normal, you would not notice a thing. If they were to wind down you would be able to use a current account switch to move to a different bank. Or for example some other bank might buy them out and carry on as normal. Thus there will not be a panic or urgent need to move money.

I’ve been through Santander Abbey takeover, Lloyds TSB split, Virgin Money Vs Clydesdale takeover, MBNA takeover, Coventry building society stopping current accounts… And it all went fine / seamless.

The funds will not be stuck, and will be easily accessible.

Monzo’s most recent annual accounts show that everything is good, and they are good to operate for the next year. That is normal and as per uk law and regulations.

The accounts do show that monzo is not yet profitable, meaning they need more users to sign up for Monzo Plus. If you are happy with Monzo Plus, do tell your friends to sign up too!

7 Likes

I wonder quite why anyone other than the OP and the moderators should be able to edit a topic title.

9 Likes

Monzo has a loyal customer base, and (I suspect) one that will weather the current financial storm at least a little better than average.

I would say the risk is not that you end up needing a new bank and a claim with the FSCS but that Monzo ends up getting owned by Amazon, Google or (worst case scenario here…) an old world bank.

Wouldn’t even need to change where it is hosted!

2 Likes

Rename Monzo Plus to Monzo Prime?

3 Likes

Maybe Apple should buy them :sweat_smile:

1 Like

They’re FSCS regulated, which means if Monzo went out of business, you’d get your money back (up to a limit of £85k) within a week.

3 Likes

3 posts were merged into an existing topic: Monzo closed my account and will not give my money!

I wouldn’t worry, every bank is facing the same thing at the moment.

1 Like

Yes, there is no doubt that other banks are suffering too, a lot depends on the reserves a bank has and they all were shock tested also.

It’s always prudent to have a second account and a card.

1 Like

In July 2019 in one of the unofficial Slack channels, I predicted Apple would buy Monzo in March 2020

Damn that coronavirus

1 Like

Good bet. I do think Monzo & Apple have a lot of similar stances on things, and if Monzo get a US license, it could be a good way for Apple to get into banking easily.

But doubt it’ll happen.

1 Like

I don’t think Apple would want to be in banking, definitely not in the US. Credit cards are the default method for most things in the US

Now entering the UK market would be a different question

1 Like

Guess I best ditch my HSBC account soon as well then :man_shrugging::joy::rofl:

6 Likes