Monzo's financial situation in The Telegraph

I mean Spotify was a startup and so far as I know they still don’t make a profit!

Monzo makes money work for everyone

A great mission…

We just need the marketplace to actually get the money to work, rather than just be used

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Another reason for a 500% is likely the stock options that increased in value considerably. Hence not necessarily he gets all in cash but mostly non-liquid shares that would inflate the figure due to crazy (but deserved) appreciation.

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Per Note 9 of the Stat accounts his remuneration was £139k salary, with the balance relating to share-based payments.

Could you clarify a few terms for me please?

Is fee and commission expense the cost of ATM transactions?
Is fee income the money received from ATM charges? Is credit impairment charge overdraft fees?

On the cusp of a Q&A question but don’t want to make assumptions based on misunderstood figures


Another article on same thing

As much as it’s quite normal for companies, people who read this will be put off joining a bank and storing their money in a bank that’s haemhorraging money.

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I don’t really appreciate the tone of some of the articles, especially the one in FT. Ok, give us the numbers to crunch but their analyses sound alarming tone as if it is 2008 and they are talking about Lehman Brothers.:slightly_frowning_face:

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The losses are inconsequential whilst the ability to raise capital is still strong (which it is), and when the unit economics turn around, it’ll become a real non-issue. Imagine if Monzo could earn £50 per customer per annum, and serve them for £15… the scope for profitability once scale has been achieved is the reason for this entire endeavour.

The following chart, albeit crude - sums it up perfectly, Monzo is currently in the dip of the downward curve:


As well as this - can anyone tell me what other banks in the entire world can acquire and serve a customer for a year for £15?

On the note of Tom’s salary, although awkward - again it pales in insignificance when compared to the FTSE top 100 average:

Male CEOs in the FTSE 100 earned on average £4.7 million last year, compared with £2.6 million on average for women.

Also worth noting that Monzo is a regulated bank, with a board and board committees - it is therefore unreasonable to believe that Tom one day decided to pick his salary out of thin air - there is a reason for a renumeration committee after all. One other note, if Tom was to suddenly become unavailable for the position of CEO - I believe it would be difficult to find a suitable candidate to replace him, who would be willing to take on the legal/financial responsibilities and other pressures of running a high-growth tech startup, for that sort of salary.


Absolutely yes. I’m not sure off the top of my head what the expansion plans are (not entirely my team’s domain :sweat_smile:), however the vision is that eventually, most people won’t have to contact support unless they either choose to or have a more complex issue.


There’s more on that here -


Monzo are not alone in getting hammered by headlines for losing money - very similar one for Purplebricks today.

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It appears most journalists have not caught up with the differing styles of online vs bricks and mortar businesses. Start small and slowly expand when you are profitable is good practice if you operate in a small geographical area. It doesn’t apply when that restriction is lifted unless your product is so niche that your customer base will also be restricted.

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Surely all start ups are start up with a loss there need to build their base. Then need to work out their costs and profits and there customer model. Then at some point then start to make a profit and get their costs down.


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