Monzo - needs to be more bank-ish to survive

While I have nothing but admiration for what Monzo has achieved so far (even surpassing my expectations) I think Monzo needs to become more bank-ish and profitable ASAP to prove it is a viable business.

Being a Hub for financial services is a good idea, But I think it will take a while for people to trust API’s (open banking) and therefore it will hamper Monzos progress to profitability unless they have other revenue streams.

Monzo is a force for good in a banking industry that is rotten to its core - I therefore want to see Monzo succeed and become a trail blazer.

To complete their mission they need to become profitable ASAP to prove good ethics can be profitable.

I would therefore like to see Monzo offer credit cards, Loans and Mortgages in a responsible Monzo way - ASAP.

Then in 3-5 years time when the Financial hub idea is fully trusted they can be both an ethical bank filling the gap Co-Op left while also helping the British population find the best financial products for them.

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I fear that the road to rotten banking is paved with "become profitable ASAP"s.


Well, Monzo is not a charity- therefore with no profit there is no Monzo.

And I would prefer a profitable responsible Monzo then no Monzo at all.

33 million loss will not be turned around on overdraft charges alone and API (open banking) is just not trusted enough at the moment.

It doesn’t need “turned around”. Monzo is a start-up: thinking of their losses in the same way as you would an established business is a little silly.

But don’t get me wrong: profitability is needed (and you’ll have seen that Monzo’s quarterly goals show that it’s on their radar). It’s the “ASAP” part I take issue with.


Totally agree about credit cards. They don’t have to be all about debt - I use mine for air miles, section 75, and the fact that all my purchases are moved to payday, but I always pay it off in full. If Monzo offered one, I literally wouldn’t need any other spending cards in my wallet, and it would offer a great revenue stream from all the interchange fees. Mortgages would clearly need a bigger balance sheet, but I don’t think credit cards would?


OK but how long before Monzo becomes profitable and over what time frame on open banking alone.
Also, what losses will it have to obsorb with out any other revenue streams apart from overdrafts.

Apologies, I’ve not been clear. I don’t necessarily disagree with your ideas (credit cards, loans, etc). I just hard disagree with all of the ASAPness.

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It’s not just overdrafts - it’s interchange fees, presumably a cut of Transferwise fees, and about to be Spread the Cost, and a cut of the interest on pots.

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Don’t forget what mastercard pay Monzo each time you tap your card :slight_smile:


Apologies, understood


Yes - that’s the interchange fee (apologies for jargon!)

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Good point, there are some many other revenue streams out there - and to excuse corporate / Ricky Gervais clinches - “Monzo should go for the low hanging fruit first.”

Also, maybe in wrong and I don’t know enough about these things…but the 33million isn’t really a debt is it? It’s investors cash that’s there to be burned through to establish the business?

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It’s there to take them through to profitability but if the profits don’t come the investment cash tap is turned off and we are left with no profits and no cash to “burn through” which means - no Monzo

You should check out the open office this month as it is all about profitability:

Also check out all the videos on the YouTube channel, there is one on there about how previously a new customer would lose Monzo money but new customer aren’t losing much or are making money. They are becoming profitable with the existing products and loans are also on the cards I believe.


Thanks for this, I have just reserved a space. I work literally round the corner to Monzo’s new office so will be good to visit and see what they say. Humble pie :pie: at the ready.


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