8.6 C
New York
Monday, May 27, 2024
Home Challanger banks Monzo Achieves Record Revenue Growth, On Track to Break Even in 2023

Monzo Achieves Record Revenue Growth, On Track to Break Even in 2023

Monzo, the UK-based digital bank, is on the path to annual profitability by the end of 2023.

The neobank has experienced a significant increase in revenue over the past year, according to an investor update seen by Sifted.

Record Revenue Growth

Annualised revenues for Monzo rose 250% to £440 million in the twelve months to December 2022, a significant increase from the 92% revenue growth to £154.2 million reported for the year to February 2022.

Monzo now expects to break even in 2023, a status that is rare among Europe’s neobanks.

Cash Flow Positive

The digital bank has been “cash flow positive” since October 2022, meaning that its ingoings have surpassed its outgoings.

Monzo’s revenue is heavily reliant on the usage of its famous coral pink cards, with 7 million UK customers, far ahead of its peers, Starling with 3.5 million and Revolut with 5.75 million.

The bank reported an average of 150,000 personal account sign-ups per month in 2022.

The Comeback Kid

Monzo’s success is a sharp turn of fate from the material uncertainty expressed by its auditors over its ability to survive as a business in its 2020-2021 annual results.

Since then, the digital bank has almost doubled its customer numbers in the UK, from 3.9 million in February 2020 to 7 million today.

Record Switching Rates

As central banks have continued to raise interest rates, UK retail banking customers switched providers at a record rate in the final quarter of 2022, according to data from the Current Account Switch Service.

After Santander and HSBC, Starling recorded the highest net switching gains at 9,070 switches, followed by Monzo with 6,030.


Monzo’s impressive revenue growth and expectation of breaking even in 2023 demonstrate its continued success in the neobank market.

Its strong cash flow and large customer base set it apart from its peers, making it a force to be reckoned with in the industry.

Recent posts

NEW Revolut UK CEO to make Conference Debut at MoneyLIVE Summit

MoneyLIVE has today announced that Revolut’s newly appointed UK CEO will be making her conference debut at MoneyLIVE Summit 2024, which is...

2024’s Financial Innovators: A New Era of Banking Startups 

In the wake of the COVID-19 pandemic, our world witnessed an unprecedented shift towards digitalization. The banking industry, in particular, has been...

C-suite Banking and Payments Leaders From Across Europe Set to Meet at London’s MoneyLIVE Summit in March

On the 6-7 March 2024 MoneyLIVE Summit will return to London’s QEII Centre to unite over 1000 banking and payments leaders from...

The Evolution of Digital Wallets: A Shift from Physical Cards by 2030

By 2030, we can expect digital wallets to become the preferred payment instrument, offering a myriad of non-payment-related services for consumers.