Monzo's annual losses double due to the pandemic

The startup reported an annual post-tax loss of USD 149.5 million in its 2020 accounts, amid investment on hiring, marketing, and a US expansion. That was despite revenues more than tripling to USD 88 million from USD 25 million. It expects credit losses to climb to USD 26 million from USD 5 million, with USD 5.3 million of that sum being set aside for a default risk associated with the pandemic.

Monzo’s market value also slashed by 40% to USD 1.64 billion in June 2020 due to the impact of COVID-19. The challenger bank currently generates most of its revenue from fees generated every time a customer uses their card, however it recently relaunched a premium account called Monzo Plus in a bid to diversify its revenue streams.