UK Fintech Bank Monzo Doubles Its Value In Latest Investment Round
The UK has a now thriving
There have been recent grumblings that much of the interest in the sector is based on hype and
When Monzo was established in 2015, its founding team had all previously worked at Starling, another app-based current account, international transfer and currency conversion
The company is also making progress in the area that has proven to be the biggest challenge for online only banks – account holders using it as their ‘primary’ account - defined as having their salaries paid into it. Key to developing a profitable business model is convincing users to not only use online-only accounts for international transfers or better currency conversion rates while traveling abroad. 480,000 of Monzo’s account holders, almost 25%, now have their salaries paid into their accounts held with the
The £113 million that has been brought into Monzo’s coffers will fund its push into the USA market as well developing its proposed ‘marketplace’, which will work a little like a comparison site by offering users services such as savings accounts that it doesn’t yet provide through partners. It will also allow users to easily switch between energy providers for a better deal.
Commenting on the deal, Monzo CEO Tom Blomfield stated:
“It’s so exciting when amazing investors back our mission to transform banking and make money work for everyone. We’ll keep working hard to deliver the products our customers need.”
And equally enthusiastic Anu Hariharan, of
“Banking is archaic and needs to be drastically redesigned. Monzo is the first of its kind to redefine the modern banking experience for customers around the world.”
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