Monzo Staff Weekly Q&A - Annual Report Edition!


Is there anything as users you just wish we would all stop doing, the things that seem to cost disproportionately high compare to the gain?
TBH, guessing this would be Card top-ups, but wondering if things like cancelling and setting up direct debits, or anything else you might not think comes with a cost is up there?

(said in jest)
Actually harder than you think to not wonder about what effect the pineapples and cats had on the report!


It is a risky question as banks usually make money from lending. You might be told to be overdrawn more often and for longer :wink::rofl:

I guess if you we know what cost them money, then you could adjust your behaviour accordingly. But I am afraid if Monzo starts telling users not to carry out certain operations usually associated with personal banking, it might result in a backlash. It all has to be voluntary.:grin:


Good point (feel like should retract my question), was just curious as I have a friend who seems to reorder new bank cards weekly after loosing them on nights out, and I always just wonder when enough is enough, guessing that costs lots of money for little appreciation ha.

(Jack) #19

I hear you make a tiny bit of money each time a card is used at a merchant :moneybag:

Do any of the following incur Monzo a charge or do Monzo make money on any of the following?

  • Outbound FPS
  • Inbound FPS
  • When a Direct Credit is processed
  • When a Direct Debit is processed

(Jack) #20

Just before Monzo Signups blew out the water :arrow_up: What was your estimation of how quickly Monzo would grow? For example, did you only predict to have 400,000 users at this point in time?

(Toby Toller) #21

Don’t know if it’s covered by this but I’d love to know if I incur a fee for Monzo each time I make a payment to my Amex (manual payment not DD). I make incremental payments daily, but would be conscious not to, if I knew there was cost involved for Monzo

What about credit cards?
(Jack) #22

I’m going to take a wild guess and say this is processed the same as a merchant and thus Monzo get a slice of the processing fee that is charged to the merchant.

Please correct me if wrong :stuck_out_tongue:

(Toby Toller) #23

Hope so!

(Eve) #24

If there’s only one thing you could say to the press groups that have been running pretty pessimistic headlines about Monzo’s “losses” to reassure them, what would your message be?

Also, I’ve seen there has been recent efforts to encourage people to go #FullMonzo. Is there a reason why users who pay their salary into Monzo/ go Full Monzo cost the least money to sustain?

(Jack) #25

Off the back of @evangelskies post are you seeing a quick rise in the number of people paying their salary in / using it as their main account?

Are new signups adding their salary / using CASS quicker than existing people who upgraded?

(Eve) #26

Didn’t want to seem like we’re quoting each other back and forth but :joy:- this was the question I wanted to ask initially but didn’t!

I think the previous percentage of people paying in their salary is now outdated, would love to know the new figures now (and if this has increased just as sign ups have increased!)


Intentional pun ?? Ha ha

(Dan) #29

It would be interesting to know what the £1.1m of related party transactions involve - what services are bought from the third party, or are they consultancy fees?

(Duncan) #30

Where’s the new office going to be, and what capacity is it?

(Duncan) #31

“The company currently holds its surplus assets in overnight deposits with Bank of England which are accessible on demand to provide liquidity for the Bank.”

In future would Monzo consider holding a portion of these assets in other higher-yielding but still highly liquid money substitutes?

(Ross Macmillan) #32

As an account holder, I’d be interested to know whether Monzo will be looking at issuing credit cards, it’s plans to issue European accounts and what innovation it would like to see from the banking and payments rails to aid its mission?

(MikeF) #33

With an 80% reduction in cost per customer achieved by various means, how much does the continued reduction depend on efficiencies and savings and how much on increasing the number of customers? (I’m clearly ignoring marketplace type additional fees here.)

To put it another, less popular, way: Is Austerity or Growth the ultimate solution here?

(Duncan) #34

I’m somewhat surprised about the recent shift in focus. At the beginning of the year the plan was quite different, as compared with after the reorienting Monzo thing happened (which I, personally, wholeheartedly support). However, in those plans from the beginning of the year “Build new partnerships” was a large, notable item, and around that time there was quite a lot of momentum around it. Looking at the annual report there is no mention of “partnerships” at all, and the only mention of “marketplace” is to somewhat subtly downplay that phrase and reorientate towards “Monzo makes money work for everyone”.

So, in short, my question is: have you at Monzo decided that the partnerships / marketplace isn’t going to be the main revenue stream anymore? (Perhaps because they bifurcate into those that are a race-to-the-bottom, and those that are hugely complex and thus not comparable to one another?)

(Emma (still not the app)) #35

Is there a danger Monzo will have to change their vision, design choices and functionality (becoming more similar to other banking products and apps) in order to attract and retain people to use Monzo as their only/main account?


Hey both :wave: - great to see this type of themed Q&A.

A few different questions, if I might. A couple directly related to the annual report:

  1. I’m not sure the new mission necessarily resonates with me as well as the old one did. I thought I understood what a financial hub was (my interpretation is here), but ‘makes money work’ seems much less defined to me. This might be a big ask, but could you put a few words together to explain what this might mean in a way that’s more tangible?

  2. I was interested to read that your bankers are Natwest. Not really understanding this world, could you explain what this role is and what Natwest does for you?

And some more wide-reaching questions that came to mind on the back of the report:

  1. In some of the press about Jonas’ new role, it seemed to say that Monzo would be putting international expansion on the back-burner and that your focus was on building the best UK current account. Is this an accurate report from your press release? Could you explain any more about the business plan in this area?

  2. Nationwide is currently running a campaign on their legal status of being a building society, playing on how they can literally ‘build society’ and pressing their mutual and ethical foundations. It struck me that it would be difficult, if not impossible, for a challenger building society to emerge. Do you have any thoughts on the structure of the industry and whether there’s a correlation of organisation type to their ethical and business approaches?

  3. One that the investors on the forum might be interested in: can you comment on when / how there might be an exit. Is there increasing interest in a trade sale, for example?

  4. And finally, on a related topic: all organisations go through changes in leadership, in shareholders and in direction. Are you taking any conscious (or, on reflection, unconscious) action to embed a certain ‘Monzo DNA’ in the organisation so that culturally it would be more difficult to the fundamentals of what makes Monzo Monzo? (I might not have explained that very well - sorry).

Sorry for so many questions. Keep up the good work!

:bowing_man: :raised_hands: