Digital bank Monzo, which is based in the United Kingdom, reported that the number of its customer base exceeded the 10 million mark.
The virtual financial institution released information about the increase in the number of clients on Tuesday, August 6. It is worth noting that this summer the digital bank has reached the first year of full profitability. Also, the number of clients of virtual financial institution increased during that period when there was a scaling up of the spread of connected banking.
Monzo chief executive officer TS Anil stated in a press release that the specified result is an important milestone in 2024, which is already successful for the digital lender. Over the past 12 months, the number of virtual financial institution’s customer base has increased by 2 million people. TS Anil says that currently, one in five adults in the United Kingdom is a consumer of Monzo services.
In May, the virtual financial institution managed to raise $190 million. Then the digital bank’s valuation reached the $5.2 billion mark.
Monzo is currently seeking to implement plans to expand the scale of its operations in the United States. Last year, the virtual financial institution hired former Cash App Head of Product Conor Walsh to serve as its US CEO.
The digital lender also has plans to expand the scale of its activities in Europe. In the context of striving to realize the corresponding intention in the space of material reality, a virtual financial institution is considering the possibility of opening an office in Dublin, the capital of Ireland.
In June, the digital bank published an annual report. These data indicate that Monzo’s pre-tax profit was 15.4 million pounds ($15.4 million). It is worth noting that the previous annual report of the virtual financial institution contained information about a loss of 116.3 million pounds.
Last month, the digital lender presented Monzo for Under 16s. This product of a virtual financial institution is a bank account designed to train money management skills to children aged 6 to 15 years. In a press release from the digital lender published after the launch of the mentioned product, it was noted that the new solution will provide children with the opportunity to experience magic money firsts like saving, budgeting, receiving pocket money, or using a card to pay in a shop. In this case, parents or guardians receive full control and visibility, ensuring that underage users safely manage their money.
It is worth noting that online banking has become increasingly common lately. The corresponding tendency is observed at the global level. In North America and Europe, approximately 40% of banking consumers currently interact with financial institutions in a virtual format. Also, about 45% of lenders’ clients in the mentioned regions perform financial transactions on digital platforms.
It is worth noting that digitalization is currently what corresponds to the concept of global tendency. In this context, the introduction of virtual solutions in the financial services sector is natural and logical. Digital banks offer consumers high transaction speed and convenience. Gradually, the number of financial institutions in the corresponding category is increasing. Digital lenders offer consumers a variety of products and solutions. For example, there is a US neobank for non-residents. For consumers, interacting with virtual financial institutions also means lower costs. It’s not about banks offering their customers lower fees. Moreover, virtual financial institutions provide access to banking services to those groups of the population who, for certain reasons, do not have access to the products and services of traditional lenders.
