We’ve published our 2019 Annual Report

That’s what I mean - to recover the ‘losses’ suffered by having to go to a APR they will need to get more people using overdrafts, which then comes with further and greater risks.

Not to mention the fact they are lending personally now - Lending in general I think will be an area to watch out for.

Hi in my opinion overdrafts are a tricky one, they historically have loads of bad press and reputational damage from alleged customer miss-selling and overcharging and I would not be surprised if it becomes subject to fee capping from the FCA.
I can imagine a newspaper personal finance feature comparing the annual cost of being on average £100 overdrawn in a year… say 18% annual interest vs 50p a day charge
Problem for Monzo also is they don’t want to hold too much capital for unused overdraft facilities - guess that will be expensive and limit capital available to lend elsewhere such as fixed rate loans

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Actually correcting myself the £81m is the total undrawn arranged facilities, to get a spot overdraft balance usage % I think it’s £18.6m divided by (£81m + £18.6m) so 19%

A few interesting takeaways:

  • Average deposit increased by almost 140% (from £120.85 to £288.63).

  • Net operating income increased by 405% since last year, while total operating expense increased by 72%.

  • Some income from contracts with a payment network provider

Other operating income includes income from contracts with a payment network provider of £1.4m (2018: £0.3m), which includes a signon bonus of £0.9m recognised as a result of achieving certain performance targets related to new customer business agreements signed within the financial year.

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You should have received an email from CrowdCube (which was the platform we used for crowdfunding rounds). The email subject is “Investor Update: Monzo Valuation Increase”.
You can also find more information about it here:

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Hey @Peter_G :wave:

I’m glad to say our web engineers are working on this right now. We should have a HTML version ready :soon:(by the end of the week).

Looking forward to answering your questions when you have had a chance to read.


Hey JustJordds :wave: Thank you for your question :blush: As Brian pointed out here, the figure of £18.5m is actually the amount of overdrafts that have actually been taken out as at the end of February 2019. The available overdraft at this point was much higher (ie the portion of overdraft limits customers granted to customers which they are not using), which we refer to undrawn commitments in our annual report. On page 78 of the annual report, you can see that a total of £81m was the unused portion of the available overdraft.


This is an interesting detail on page 5:

We announced our plans to launch a prepaid card product in the US, in collaboration with a partner bank.

Not quite the feeling I had gotten from other comms on the subject

What was your feeling? They’ve been quite clear it’s a prepaid from the start before applying for a bank licence themselves?

I did not see the word prepaid used anywhere and indeed some on the threads were quite excited that they were not retreading the same path (though it seems they are)

No mention here:

or here:

for example

All the language used makes it sound like a similar offering

We’re not a US bank… yet

Monzo isn’t a bank in the US yet, so we’ll be working with a partner bank to make sure that your money’s safe (it’ll be fully FDIC-insured). We’ve also started to build a small team in LA. Longer term we’ll apply to become fully licensed as a US Bank. But because that’s a long process we want to start serving the US sooner, so we can learn and iterate fast.

Granted it doesn’t say the word ‘prepaid’ but it couldn’t be clearer they’re not a bank, no?

it couldn’t clearer

Well it obviously could have been clearer, since it was clearer in the annual report

Given how familiar those in the community are with Monzo’s origins it seems an odd omission

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What did you think they were launching then?

Edit: the header literally says ‘we’re not a bank yet’

I am not sure why you are chasing me so hard on this

Take a look at a search of the community:

Apart from my point above the closest mention is a question, unanswered, trying to clarify that very point followed closely by a post from someone pleased it was not a prepaid card

There was at least room for confusion there, which I hope can be acknowledged

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Up until reading this thread I had thought they were launching as a full bank. I’d just skim read posts and assumed they had a partnership with someone else to allow them to be a bank while waiting on their own individual licence.


1 employee per 2,244 accounts.