Pockit to acquire Monese

The acquisition aims to create a fintech platform for financially underserved and lower-middle-income consumers across the UK and Europe. Pockit, backed by Puma Growth Partners, will inject up to GBP 15 million in equity capital to support the integration and growth of the combined business. The financial terms of the deal remain undisclosed.

The merged entity will serve approximately 3 million customers and generate nearly GBP 30 million in annual revenue. Pockit is set to benefit from Monese’s regulatory infrastructure, including electronic money and consumer credit licences, and expects operational synergies due to the overlap in customer bases, product offerings, and geographic presence. The acquisition will also accelerate Pockit's plans to introduce new services, such as multi-currency accounts, alongside its existing products like digital accounts, salary advances, and credit-building tools.

Both Pockit and Monese will continue to operate independently until the integration process is complete. In the long term, customers are expected to benefit from an expanded product range and improved customer service and technology.

HSBC exits Monese investment as Pockit moves forward with acquisition

HSBC has opted to write off its 5.4% stake in Monese, marking a significant financial loss for the banking giant. The investment, made in 2022 as part of a strategic collaboration centred around Monese’s BaaS platform, has now been abandoned amid Monese’s corporate restructuring.

Monese's financial troubles came to light earlier in 2024, when it signaled concerns about its long-term viability. As part of its restructuring efforts, Monese spun off its BaaS operations into a separate entity called XYB. With Pockit now set to acquire Monese’s customer banking section, the acquisition offers an opportunity for Pockit to expand its services across Europe and the UK, particularly for underserved and lower-middle-income consumers. This acquisition aligns with Pockit’s strategy to capitalise on Monese’s regulatory infrastructure and broaden its product suite.

HSBC’s exit highlights the difficulties faced by traditional banks navigating the fintech landscape. Despite Monese’s early success and investment from notable firms like PayPal and Kinnevik, it struggled to maintain growth in an increasingly competitive market. While Pockit aims to leverage Monese’s assets to fuel its expansion, Monese’s rising administrative costs and mounting losses underscore the ongoing challenges for digital-first financial institutions. Both HSBC and Monese have declined to comment on the situation.