Coronavirus threatens Monzo’s ability to continue operating

Some words on profitability at Monzo, the day before their annual report is released.

New chief of UK digital bank is relying on fresh products to help it to profitability

Monzo’s new chief executive said the company was banking on new products to help it to profitability as it warned that the coronavirus pandemic had threatened its ability to continue operating.

(Topic title is from the article - not my words!)

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I predict some bad figures tomorrow thsn

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I can’t seem to access the FT article now, but I’m sure it said tomorrow :thinking:

Found it on another site, although it says “Thursday” rather than tomorrow (Friday)

In its latest annual report, which will be released Thursday, the bank said uncertainties created by the pandemic “cast significant doubt” on its ability to continue to operate. The company added, however, that its directors were “confident in Monzo’s ability to execute its business plan and raise capital if needed.

So I guess it was released today. My error! :roll_eyes:

1.37 billion in deposits, 3.9 million customers.
Seems to make just £350 per customer.
And average annual spending of £2500.
It looks like for the vast majority of customers it’s still a going out card / holiday card and this is why they’ll really suffer from covid impact.

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Its latest annual report, to be published on Thursday, the bank said uncertainties created by the pandemic “cast significant doubt” on its ability to continue as a going concern.

From Monzo 2020 Annual Report
Page 75

Due to these obstacles, the Directors recognise
there are material uncertainties that cast
significant doubt upon the Group’s ability to
continue as a going concern. The financial
statements do not contain adjustments that
would result if the company was unable to
continue as a going concern.

Was anyone surprised?

This is what happens if you don’t try to make money.


I must admit I would find it particularly troubling if an institution I had entrusted my money to spoke publicly of its fears that it might not be ‘unable to continue as a going concern’.

That’s a flag, if ever there was one.

That said, I still don’t think that there is anything wrong with the product they provide, I hope they overcome these fears (and, you know, make some money).


Too right. It’s such a stark statement it might have been made and overheard at a junket somewhere. Given that it wasn’t, I wonder if it was said with some specific intention in mind :thinking:.

If it’s all true, I can’t help but reflect that Monzo, over its lifetime to date, hasn’t been business-smart. It’s never seemed to look beyond its current customer-base. Starling’s efforts, on the other hand, have certainly borne fruit.

Agreed, though, Monzo’s place in the market is important and their success will be good for the space.


It sounds like Monzo’s new boss was having a Gerald Ratner moment. I hope customers don’t take fright and flee the business.


:rofl: Don’t forget, there will be folks on here far too young to even remember Gerald Ratner. I’m not one of those by the way! Here’s a reminder :laughing:


We might be the only ones who know who he is. :grinning: He sank the company with one short speech, -and Ratner’s was a profitable business. Monzo isn’t even making any money yet.

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That’s what it was :grin:

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I’m afraid I’m also of the age where I clearly remember that :slight_smile:

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I’m not :smile:

For me it’s not so much Monzo said it, but that the auditors mention the same thing when they signed off the accounts. That’s unusual to say the least.

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I don’t know what’s worse. Monzo. Or Monzo controlled by Revolut.

I think this is very relevant.