Monzo Staff Weekly Q&A - Annual Report Edition!

They should give you a better rate :smiley:


Yes that is something we look at as well. There can be additional regulatory and/or operational considerations to make depending on exactly what we hold so as we grow our deposit balances it will be something we look at more.


A mix of both, but mostly on the efficiencies. We do want to continue leveraging technology to improve our product and services, and how efficiently we offer it. However we don’t want to reduce the quality of our service in any way, so there may be a limit to the cost savings that can be achieved and we are focusing on building our revenue streams for the future too


The last few months have been focused heavily on the current account upgrade so we’ve looked a lot at the progress of customers moving over.
Other KPI’s we look at can be pretty conventional like profitability, fraud incidents, but we also focus heavily on customer metrics like the costs but also NPS feedback. Since we are a digital bank, we also report on systems performances which I’m glad to say has improved dramatically since migrating off the prepaid program and reducing our reliance on 3rd parties!


We are currently applying for additional regulatory approvals before we can really proceed with the marketplace and expect to hear back from them fairly soon. This is required to allow us to have a marketplace where we’d essentially be an intermediary between our customers and a third party offering the financial products. Once we get this we can focus more heavily on the marketplace and what that looks like :slight_smile:


The £10 is dependant on the volume of our interactions with customers, so the more often customers contact us, the higher the number will be. But you are also right in that providing both our customers and customer services teams the right tools can help this cost go down too.

Customer longevity hasn’t necessarily impacted the cost. It’s driven more around how regularly a customer uses their Monzo card, for example the more transactions you put on the Monzo card, the more likely you may be to query something that has popped up. As more people go #fullmonzo we’re also working on getting the right tools in place so customers can get a lot of the answers they need through our AI help features without necessarily speaking to us, unless you want to of course!


Of course! So we focus on variable revenue and variable costs, being the things are can go up or down directly due to our customer base. This includes:
expenses like providing customer services, costs of mastercard, etc.
These costs are then offset by some revenue we earn like overdraft revenue and interest on holding deposits
We then take the net amount and divide it by the number of users who have actively used their account in the last running 7 days
It doesn’t include fixed company costs like other staff besides customer services, or rent.


Thanks both, interesting answers :clap:t3::slight_smile:

EDIT: oops looks like you’re not yet finished :joy:


Hello! These are all terminologies we need to use per accounting rules, and they apply to all businesses, so I agree it’s not always super clear how it applies to any individual company - I hope this helps explain how these relate to Monzo specifically :slight_smile:

from the ‘Statement of comprehensive income’ section of the annual report

Interest income: interest we earn so for example we place cash at the Bank of England who pay 0.5% on deposits

  • Fee and commission income/expense: this covers some direct fees we earn or pay on customer activities like overdraft revenue, mastercard revenue and expenses on customer purchases

  • Credit impairment charges - you’ve pretty much got it :slight_smile: for accounting rules, whenever we make loans to customers, we have to do a calculation that covers the risk that some customers may not pay us back. We take this as an expense upfront at the start of the loan.

  • Other operating expenses: All the other stuff :stuck_out_tongue: examples include our technology platform costs, consultants, marketing. For this report it would also include our third party supplier costs on the prepaid program that we now no longer have.

from the ‘Notes to the financial statements’ section of the annual report

Table 6

  • Fee income/expense on banking services: money earned or spent on specific traditional banking services, like the overdraft revenue or fees earned on foreign ATM withdrawals, and Mastercard expenses.

We do incur a small cost for every payment you send out so if it’s all the same to you, batching up a weekly or monthly payment will help too! :slight_smile:

Note to self, not to send a penny when adding someone’s details to check they’re right! Guessing that costs more than the transaction to send!

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@joey100 to clarify if you’re paying your Amex card off by entering the long card number etc rather than bank transfer Monzo make money from this, so more transactions would be better no?

Also didn’t think of that, I bank transfer to clear my credit card as it clears balance within the hour !

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Thanks all! This was really fun and the questions were great. Happy to answer any further questions haphazardly over the week :slight_smile:


we still have costs associated with all transactions and it just depends on how it nets out :slight_smile: like the Point of Sale stuff where we make a little money on card purchases, we also do still pay some Mastercard fees on this


This has to be the most information heavy Q&A to date! Absolutely amazing stuff.

Massive shout-out to @tristan and @joey100 for being amazing! It’s been a phenomenal Q&A session!



Not really my position to suggest changing your mission statement but it definitely seems like this sentence is closer to what you were aiming at than the rather nebulous “Monzo makes money work for everyone”. I recon you’re better off with “Monzo takes the stress out of money”, or perhaps the more positive “Monzo puts you in control of your money”. But, yeah, what do I know.


Hi @tristan are you able to provide any insight as to what the current active user rate is and how this is calculated? :slight_smile:

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