The future of banking? - interview with Tom at Cass Business School 📺


(Alex Sherwood) #1

Highlight -

Tom discussed the challenges of profitability, saying his current priority was ensuring that Monzo broke even in 2018 and turned a profit in 2019.

which aligns with his comments in this year’s annual report -

From a financial perspective, we’ve got enough capital for at least the first 12 months of life as a bank. To create a viable, sustainable business, it’s important that we reach profitability over time. However, profitability is not a key priority for this year, and we would prefer to focus on growth over driving revenue.

but as far as I know, he hasn’t mentioned his aim to earn a profit in 2019 before.

Highlights -

Full interview -


(Fin) #2

Thought it was really interesting that Tom is caring more about not having built something that people love, or something compelling, as opposed to big incumbent banks or big tech firms muscling in.

On that note, I love Monzo as much as most people on here, but as someone who’s been a customer since the very beginning, development of the app has definitely slowed recently. The excitement, and buzz has been fading for me. Because when I talk to friends about Monzo, there still isn’t anything (apart from forex) that makes them say, “yes, that’s different, and that’s a compelling reason to switch from Natwest etc.”.

In my eyes, Monzo is basically at the stage whereby they can do what the other big banks do. I really hope that now current accounts are out of the way, and they have got a better handle on customer costs (ending prepaid, ATM withdrawals etc.), they can get back to what made them exciting in the first place, building cool and different stuff, solving problems people didn’t know were problems because they’ve just accepted the status quo for too long – creating buzz.

I appreciate it’s obviously not that simple. There are loads of people that want Apple Pay for example (which I’m not that fussed about), or Android parity, which I can see takes priority and probably for good reason. But personally, I want those reasons to convince my mates to switch, and I can’t wait for all the integrations, to be sold travel insurance when I land in a foreign country, updating spending tabs and the new targets features, overdrafts (both of which seem like they’ve been in the works, or right around the corner for sometime) that’s when Monzo gets compelling.

Once Monzo gets to an even keel with those “normal” functionalities, I really hope they can ratchet it up on the feature front.

Build it @tom, and they will come…


(Alex Sherwood) #3

It’s funny that you say that because actually, if you’re an iOS user, you’ve made it through the year of almost no releases (Android users had a few more) & now we’re seeing features being released much more often.

I expect the migration of prepaid users to the current accounts is still slowing them down but keep the faith, I expect the pace will continue to increase :smile:

Since you mentioned it, check out this post for more on Apple Pay..


(Fin) #4

Yep, conscious of how spoilt I’ve been on that front, and I know there have obviously been “releases”, but my point is more about the value of those releases (and I mean that in the nicest possible way).

For example, pots is cool, but it’s not super powerful or compelling yet. I still can’t create a pot, which is managed by nutmeg and is making me money quietly in the background - that’s cool. That’s a powerful, value adding, compelling feature.

Again, I know these things will come, but my main point is that in my eyes, rightly or wrongly, my personal perception of the speed of these powerful releases is slowing, or not quick enough (based on expectations set by Monzo - e.g. overdrafts which has been discussed in great length on other threads).

It wasn’t meant as a criticism per say, but more to add colour as a customer to Tom’s concern.


(Excited about Christmas) #5

Almost implies they can get to profitability without another raise. That would be awesome.


(Simon) #6

Totally agree with you. It’s been extremely slow these past few months (iOS user too so hardly any updates). I do think it’s started to pick up these last few weeks and I’m very hopeful that development will pick up significantly over the next couple of months.
Basically can’t wait for prepaid to shut down and focus on features increasing.

Patience is hard but I’m still hanging in there :yum: