Monzo’s path to profitability

Starting this to discuss ideas for Monzo’s path to profitability.

It will be interesting to see people’s ideas.

Hopefully Plus will be successful enough to play a part in Monzo becoming profitable. There is also the revenue from paid business accounts, interchange fees, interest received from lending and referral fees. Anything I’ve missed?

Aside from increasing revenue, it does seem like costs need to be reduced too, as we have seen in recent months with the actions of the new management team.

What could Monzo be making money from in 12 months time that they don’t currently make money from? Some suggestions:

  • Monzo Premium - the more expensive tier of Monzo Plus
  • New credit products - both personal and business
  • Software As A Service - provide a platform akin to what Project Imagine are trying to create, make more money in the B2B market
  • Paid for advanced budgeting software - personally I used to be against this idea, but now would be happy to pay for it if they did a good job. It could be a key differentiator for Monzo.
  • Investment products - S&S ISA

Edit: added business accounts to current revenue streams

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£5 monthly fee for Business Pro accounts.

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If they made plus better and more worth it as the offers are rubbish at the moment. One of my accounts gives me 25% off uber/20% off just eat as a instant rebate and that costs me £0 to run, I literally have £4.63 in the account aswell so I’m nowhere near the premium accounts which give you free airport longes and 10% offamazon

then I reckon more will join giving them more profit if they had better offers

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Based on what exactly?

I suppose that depends on whether new features are added before the first 3 months are over


Oh so you’ve applied that logic to 50,000.

If none of your friends said they would cancel, would you say Monzo would have 0% cancellation rate?

I think this a good overview. The new CEO does come from a more traditional financial background, so I suppose the challenge will be applying FinTech solutions to some traditional banking money makers

How many “profitability” posts have I seen…

I’ve just had this right brain wave, if everyone just bought plus for a while even if it’s of no benefit to you :thinking: :fishing_pole_and_fish:

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Does the new CEO have any experience of the UK market? The banking industry here is very different in some ways than those overseas.


I think (well, I’m pretty sure), that it has been mentioned before that Revolut is not a fully regulated UK bank, which in many cases renders any comparisons moot, since they cannot really be, fairly, compared together.

I do see where you’re coming from though, but just thought I’d add my 2 :moneybag::moneybag: (closest I could get to a “two pence” emoji lol)

Which account

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I’m a Plus customer since first version - £3. Now I’m upgraded to a new one and really disappointed.

I thought this YouTube video was interesting to watch

Is Monzo about to collapse . Analysis and deep dive into the numbers


It will likely be one of the student accounts imo as regular accounts do not seem to have such incentives available for free.

Was never a student account holder though, so cannot talk from experience.

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I’ve just watched that - it is indeed very interesting. Especially EY’s input.

Monzo’s own auditors state they have significant cause for concern whether Monzo can continue operating. I’ve not seen anywhere else pick that up.

He never mentioned anything about Monzo’s current working capital which which would have been important to know about to put things in perspective. Other than that, it was quite an interesting dive.

The auditors will have taken the level of Monzo’s working Capital into account when raising their concerns.