Monzo's annual losses double due to the pandemic

Friday 31 July 2020 13:59 CET | News

UK-based digital bank Monzo has announced its annual losses more than doubled and warned its ability to continue operating had become more uncertain 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. 

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Keywords: Monzo, UK, digital bank, digital, banks, pandemic, coronavirus, COVID-19, startup, US, challenger bank, cards, Monzo Plus
Categories: Banking & Fintech
Countries: World
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Banking & Fintech

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