Fintech News 🚨: Monzo Bank Announces First Full Year of Profitability Amid Record Growth and Accelerates International Expansion Plans
Monzo, the UK’s largest digital bank, today announced its first full year of profitability, achieving a pre-tax profit of £15.4m for the financial year ended 31 March 2024. This was driven by a 2.5x jump in gross revenues to £880m, across diversified income streams.
This broad-based revenue growth has been driven by 9.7m customers who are trusting Monzo with more of their money, using it to spend, budget, save, invest and borrow. Monzo added 2.3m customers in the year, including 200,000 new business customers, and is already the UK’s seventh-largest bank. Customer deposits grew at a significant rate of 88% to £11.2bn, with deepening engagement across Monzo’s customer base, as the bank added more products and features to help customers manage more of their financial lives.
The 2024 financial year saw Monzo scale and invest with discipline as it made strides on its ambition to become the one app customers turn to, to manage their entire financial lives. By bringing the best of banking and technology together, Monzo launched many game-changing products and features including Instant Access Savings, Monzo Investments, Cashback, and an industry-first in its fraud-preventing Call Status tool.
Monzo’s Instant Access Savings Account launched at a time when it was needed most, attracting 1.3 million customers in just over a year. Monzo continued to invest in and grow its existing subscription offerings, with more than 500,000 customers subscribing to Monzo Plus and Monzo Premium to access key benefits. Its Investments product enjoyed exceptional uptake from first-time investors and a new Cashback rewards offering has seen £1.5m paid back to customers since its November launch.
Throughout the year the company continued to help customers manage their money in the face of persistent economic challenges and the ongoing cost-of-living crisis. It passed on the majority of base rate rises to customers, paying out more than £130m in interest. It has also continued to support customers with their borrowing needs across a wider range of services including overdrafts, personal loans and Monzo Flex. Gross lending increased 84% to £1.4bn as the business continued to safely grow its lending business. Monzo’s popular savvy budgeting tools and features were put to work, with automated round-ups saving customers more than £16m each month and the 1p savings challenge helping customers put away £16m in FY24.
The fast-growing digital bank more recently raised around £500m of new capital from leading global investors led by CapitalG, Alphabet’s independent growth fund. This, and the uplifted valuation resulting from it, is a powerful endorsement of what Monzo has achieved.
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