Interesting article in the Spectator:
“I think Monzo gave up in terms of their business,” he says. “If you look at their valuation, they dropped.”
“My feeling is something went wrong there and they’ve lost steam in terms of innovation.” Storonsky says of the business often considered to be Revolut’s arch rival. “I’m not really worried about what Monzo is doing.”
Storonsky’s gaze is further afield. “I’m looking at the US,” he says, “what Cash App is doing, what Chime is doing, what Robinhood is doing. I think at this particular moment, they’re probably stronger competitors than Monzo.”
I think this interview is really interesting, thanks for posting it.
It also seems to me that Nikolay is genuine in these remarks, beyond the general “play down talk of the competition” that you would expect.
Revolut have, very successfully, expanded to many markets outside of the U.K. already. Monzo have only attempted to break into the US, but with trouble in their existing core market due to Covid (and resulting squeeze in revenue) this looks to have been put on the back burner for the time being.
Meanwhile, Starling is also planning EU expansion and they are much better placed for it having already tested operating a Euro account in the U.K.
If they are Monzo’s two biggest competitors, and I think it’s safe to say they are, it does genuinely look as though Monzo is falling behind in comparison.
There is still plenty of room for growth at the expense of the incumbents, but I do wonder if these customers can be attracted with Monzo’s currently restrictive stance on cash and cheques.