Welcome to Everly.eu’s weekly summary. Let’s see the most important news we have covered during the last week in a TOP 5 list!
Monzo bank is now obliged to have a capital worth of 13.6 percent of its risk-weighted assets to be protected against potential losses. Before the rule change, Monzo was required to have capital worth at 9 percent of its risk-weighted assets as a shield against losses.
Revolut reported a pre-tax loss of £107m for the year 2019 to December. This means the company’s losses more than tripled to a £33m pound loss in 2018.
Starling bank recently announced that it generated £6.7 million for the month of July 2020, meaning that it could make annual revenue of £80m. Russian neobank Tinkoff announced the launch of its new charitable scheme called ‘Cashback to Give Back’ and we have also prepared a comparison of various challenger bank models.
These capital requirements were increased by the Bank of England while Monzo was in the process of raising £60 million in top-up funding.
2nd place: Revolut losses tripled to £107m in 2019
The losses for Revolut came despite Revolut’s revenue jumping by 180% to £163 million.
Revenues came in at £14.2 million, a significant rise from the £750,000 it secured a year earlier.
4th place: Tinkoff launches charity cashback scheme
This particular tool allows Tinkoff’s users to direct their cashback to charities and aims to encourage more Russian consumers to consider donating to some of the current issues in the country.
With the annual reports from Revolut, Monzo and Starling it became apparent that challenger banks were losing money despite the rapid growth in 2019. Which models are viable to profit and which not?
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