Monzo’s pivot from cool to corporate: ‘freshness is not about gimmicks’

Summary

Monzo, Britain’s biggest digital bank, is still synonymous with its neon debit cards, extensive use of emojis, and free spending abroad. But it’s no longer just trying to be cool; it’s trying to become a major financial institution. That shift, from an upstart fintech beloved by millennials into a mature, sustainable business, is what makes this year a likely turning point. In a sit-down with this editor last week, despite signs that Monzo is preparing to go public – along with new reports that something is in the works – Monzo CEO TS Anil wouldn’t confirm that Monzo is listing this year. He suggested the building blocks are in place, though: profitability, product breadth, and just the right amount of AI. The numbers help tell the story. Monzo posted its first annual profit last year. In its 2024 annual report, it claimed 9.3 million personal account holders and more than 400,000 business customers. It’s also no longer reliant on interchange fees and overdrafts; lending, subscriptions, and business banking are now meaningful revenue streams. All this comes after a period marked by regulatory scrutiny and leadership turnover, developments that forced the company to grow up fast. Under Anil — a banking veteran who joined Monzo in 2020 and soon after took over as CEO from co-founder Tom Blomfield — Monzo is still flashy. Those hot coral cards remain a must for many younger banking customers. It has also become more disciplined about its growing product lineup. Monzo’s customers can now invest in mutual funds powered by BlackRock, for example, and track their existing mortgages from other lenders in their Monzo app. They can also use Monzo in the U.S., though most Americans have yet to hear of the brand. The question is whether that’s a problem, considering Monzo started amassing beta customers in the country six years ago. Certainly, it seemed fair to ask if Monzo needs to penetrate the U.S. market to become the global powerhouse that Anil is envisioning. During our s...