Monzo has reported it has 135,000 paying subscribers since it launched its paid services.
In Brief:
These services include Monzo Plus and Monzo Premium.
These were launched in July and October 2020 respectively.
This is not including Monzo’s business offering, also paid, which has reached 80,000 accounts.
What does this mean?
Speaking to The Sunday Times, Monzo CEO TS Anil said that the challenger bank’s revenues are now up 30% compared to their levels before the Covid-19 pandemic – with around 100,000 UK customers added per month.
It’s a big challenge for the challengers to turn a profit since so much of their offering is used for free and they don’t tend to offer the same products banks offer to bring in revenue – like loans – straight away. Several have now brought in “premium” offerings to attract paying customers, but the challenge is differentiating these significantly from the basic offering.
