Monzo has seen its pre-tax losses leap to GBP 33.1 million for the year ending 28 February 2018. The numbers represent a four-fold increase from 2017, when losses were GBP 7.9 million. That, however, belies a tripling of its user base alongside growth in its income as the firm begins to double-down on boosting revenues and target future profitability.
The bank, which has 7,300 crowdfunding investors has increased its customer base in the past 12 months. It now has more than 750,000 customers who’ve spent more than GBP 2 billion through Monzo, the firm says.
In September 2017 Monzo converted its customers from its prepaid card programme to regular current accounts which netted a rate of 94% and, the bank says, reduced the cost to run each active account by close to 80%. The new current accounts run on technology built entirely by the team at Monzo, so the bank no longer pays a third party to process payments.
With more than 60,000 people opening new Monzo accounts each month and 80% of that growth coming through word of mouth and referrals, Monzo announced that is planning on growing engagment through adding product features with network effects.
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