CMA Calls Out Monzo for Breaching Banking Rules
- 27 Jul, 2022
Monzo
Description
Monzo (previously Mondo) is a digital, mobile-only bank in the UK. Monzo offers a high-tech banking app and credit card. It gives users instant balance updates and offers to its clients a range of intelligent notifications such as tracking recurring payments and providing summaries of exactly where their money goes each month. Monzo’s users have spent more than £20m in over 130 countries since its launch.
Overview
| Type: | Private |
| Funding Status: | Series G |
| Foundation year: | 2015 |
| Location: | London, United Kingdom |
| Number of employees: | 1001-5000 |
| Founders: | Tom Blomfield, Paul Rippon, Jonas Huckestein, Gary Dolman, Jason Bates |
| Website: | https://monzo.com/ |
Target geographic market:
Global - in 132 countries. Monzo card should work anywhere that accepts Mastercard. But there are occasional issues with using Monzo cards in countries like Cuba, North Korea and Bulgaria.
Awards:
- The British Bank Awards: Best Banking App (March 2020) - Money Saving Expert 2019: number 1 in the customer services poll - British Banking Awards 2019: winner of Best Banking App - LinkedIn Top Startups 2018: number 1 most sought-after startup in the UK - KPMG Fintech100 2018 in the ‘Top 50’ most innovative Fintech companies globally - Tech Nation Future Fifty 2019: one of the UK’s most successful digital businesses
About Product/Service
| Products | Monzo Current Accounts; Monzo Plus Accounts; Monzo Business Accounts; Monzo Joint Accounts; Monzo 16-17 Accounts; Savings; Overdrafts; Loans; Travelling with Monzo; Energy switching; Bill splitting |
|---|---|
| Core product offerings for individual/retail customers | 1. Full UK account. 2. App-based banking. 3. Freeze the card on the go, get instant notifications, great spending visualisation features. 4. Fee-free spending abroad. 5. A range of interest-paying savings accounts is available through Monzo’s partners - Paragon, OakNorth, Ivestec, Charter Savings Bank. You can now get tax-free savings through your Monzo account and select short-term or long-term savings, with cash withdrawals next day or in 12 months 6. Overdrafts available (overdrafts up to £500 and loans up to £3,000.) 7. Split bills and open a joint account 8. Switch from old banks account to Monzo 8. if you use Monzo in London, you can connect a cashback app called Tail to your account to get cashback at certain retailers |
| Differentiating features of product | Monzo offers a full UK account that is almost entirely fee-free (no monthly fees and no cost for physical card). It’s app-based, very easy to set up and use and is also expanding to offer more products, such as savings accounts. |
| Sales channels | 3% fee on foreign ATM withdrawals after the first £200 each month. Going overdrawn costs 50p a day after the first £20. Monthly fees for Monzo Plus, that comes with extra features. £5 monthly fee for Business Pro Plan. |
|---|---|
| (a) a personal account | Yes |
| (b) a business account | Yes |
Funding rounds
| Last Funding Date | Jun 16, 2020 |
|---|---|
| Last Funding Amount | £60M |
| Last Funding Type | Series G |
| Total Funding Amount | £384.7M |
| Number of Funding Rounds | 16 |
Financials
| Customer/Products segments | Current accounts, remittance, debit cards, savings, bills and spending, loans & overdrafts, business accounts, single currency (GBP) account, international money transfers with TransferWise, cashbacks |
|---|---|
| Key product offering | Personal accounts (current accounts, joint-accounts, Monzo for 16-17 year olds); Business Accounts - Light and Pro |
| Major shareholders | Y Combinator, Accel,,General Catalyst, Thrive Capital, Passion Capital, Goodwater Capital |
| Banking license | In 2017 Monzo got a full UK banking license. Authorised by the Prudential Regulation Authority (PRA) and regulated by the PRA and the Financial Conduct Authority (FCA). Monzo has applied to the U.S. Office of the Comptroller of the Currency for a banking license in April 2020. |
| Type of customers | Retail customers (residents and non-residents), SMEs |
| Number of customers | 4,1M+ total accounts |
| Estimated revenue | $10M-25M |
| Number of investors | 29 |
| Number of lead investors | 7 |
| Names of lead investors | Y Combinator, Accel, General Catalyst, Thrive Capital, Passion Capital, Goodwater Capital, Yoma James Kukor |
Tech stack
Competitors
| Founding Date | Type | Tags | |
x Neon (Switzerland) Neon is an independent Swiss mobile account. | 2017 | Private | |
x BABB BABB is a world bank for the micro-economy: a... | 2017 | Private | fintech, challenger banks |
x Yoti Yoti is a digital identity system that provides a... | 2014 | Private | |
x Cashplus Cashplus is a leading digital challenger to UK... | 2005 | Private | Challenger banks, fintech |
x Neon (Brazil) Neon is a digital bank that offers credit cards,... | 2016 | Private |
Reviews
4.8 out of 5
| Number of uploads: | 2 970 560 |
| Number of reviews: | 34 467 |
| Updated: | November 27, 2020 |
| Last Version: | 3.60.0 |
4.5 out of 5
| Number of uploads: | |
| Number of reviews: | 14.1K |
| Updated: | |
| Last Version: |
4.4 out of 5
| Number of uploads: | |
| Number of reviews: | 9,803 |
| Updated: | |
| Last Version: |
3.5 out of 5
| Number of uploads: | |
| Number of reviews: | 163 |
| Updated: | |
| Last Version: |
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