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Home  >  Companies  >  Monzo
Monzo is a UK-based neobank that provides consumer and business banking through a mobile app.







Growth Rate (y/y)








Monzo generated $1.1B in revenue in fiscal year 2024 (ending March 2024), up 147% from $451M last year.

Total card spend grew 42% from $42.7M to $60.7M, while their total number of customers grew 31% from 7.4M to 9.7M.

Half of all Monzo's revenue today (50%) comes from the interest collected on their deposit and lending products, and about a quarter (23%) comes from fees and commissions, including interchange on cards.

That's a big shift from two years ago when 22% of revenue came from interest and 52% of revenue came from fees.

Business model

Monzo was launched in 2015 to offer a mobile-based consumer-friendly banking experience, compared to traditional banks' branch-based and expensive banking experience. Instead of making money from lending or charging hefty fees, Monzo’s business is anchored on taking a cut out of the financial transactions it processes while giving away core banking products for free. 

Its bright-colored debit cards and features like no overdraft fees, quick account opening, instant payment notifications, and Venmo-like P2P money sending, attract younger customers in the age group of 18-34, who form 3/4th of its customer base. Access to customers' financial data enables Monzo to offer new products, which it can push to all 5.8M customers as an app update with no incremental CAC. This has the dual advantage of expanding transaction volume and reducing operating costs. 

In the long run, Monzo aspires to be the money app on your smartphone that you use for all types of financial transactions. Monzo introduced paid consumer and business banking plans in FY 2021 to monetize the existing users, as its user and transaction growth slowed down.


Monzo’s products can be classified into consumer banking, business banking, and personal lending. The features a customer gets depend on their subscription plan.

  • Consumer banking: Customers get a checking account and debit card plus features like P2P payments, no overdraft fees, instant notifications, etc. Monzo offers two paid plans at £5 or £15 per month that provide premium cards and features like interest on checking accounts, insurance, virtual cards, and the ability to integrate other cards to Monzo’s app to track expenses.
    • Business banking: Business customers get free UK bank transfers and digital receipts, besides basic Monzo features. By paying £5 per month, business customers get the ability to integrate their accounting software to Monzo, virtual cards, multi-user accounts, and invoice management.
    • Personal lending: Monzo offers personal loans at 8.9% APR and overdrafts up to £2000. It recently started offering a BNPL product, Monzo Flex, as part of its lending portfolio.



    Monzo is the largest neobank in the UK, with 5.8M customers, compared to 3M of Revolut and ~2M of Starling and Monese each. However, Monzo only has a UK banking license and cannot operate in the EU. With 97% of the UK adults already having a bank account, it means that for Monzo to grow, it has to acquire customers from traditional and neobanks.


    Traditional big six banks, including HSBC, Lloyds, and Barclays, have 85% market share. They have taken steps like dropping or curbing overdraft fees and improving the mobile app experience to stem the loss of customers. Neobanks increased their market share to 8% in 2021, primarily consisting of digitally native younger consumers. While Revolut and N26 focus on geographical expansion, Starling focuses on B2B banking and selling BaaS to fintechs, Monzo positions itself as the everyday bank for everyone with an uncomplicated core banking experience. 

    One of Monzo's key challenges is that customers use it as their secondary account, which reflects in Monzo’s average customer deposit of £765, compared to £10,60 for Lloyds and £25,000 for Natwest.

    TAM expansion

    Layering more consumer banking products

    The UK financial services market is relatively dis-aggregated, with customers using Monzo for banking, eToro for crypto, Freetrade for equities, and Atom for mortgage. The opportunity for Monzo is to aggregate this demand on its platform through its own products or third-party partnerships where Monzo acts as the distributor. Monzo’s customer base is predominantly less than 34, so it can grow with them to offer different products at different lifecycle stages.


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