Flaunting some snazzy coral cards, with upwards of 4M users & millions in funding, Monzo has been in the limelight since 2015. \u200d<\/p>\n
While its product & geographic expansion strategies do show potential, Monzo has yet to emerge with a positive bottom line.<\/p>\n
Loans & advances make up for less than 10% of its deposit base \u2013 a big opportunity missed in terms of earning interest income. However, advances have increased 8x Y-o-Y, a good indicator.<\/p>\n
The company reports positive contribution margins of \u00a34 per customer in 2019, but its operating expenses are 4x of net operating income for the current year.<\/p>\n
Impact of COVID-19 on interchange income from transactions (leading contributor to revenue) will be severe. In proportion, interest income is 25% lesser than interchange income.<\/p>\n
2 new paid products \u2013 Monzo Plus & Business Accounts have scope to build sustainable revenue sources, however, lending remains its best bet.<\/p>\n","protected":false},"excerpt":{"rendered":"
Flaunting some snazzy coral cards, with upwards of 4M users & millions in funding, Monzo has been in the limelight since 2015.<\/p>\n","protected":false},"author":70,"featured_media":3696,"comment_status":"open","ping_status":"closed","template":"","meta":[],"product_cat":[155,81],"product_tag":[152],"class_list":["post-5675","product","type-product","status-publish","has-post-thumbnail","product_cat-digital-finance","product_cat-insights","product_tag-deep-dive","member-discount","discount-restricted","first","instock","downloadable","virtual","taxable","purchasable","product-type-simple"],"acf":[],"yoast_head":"\n