UK digital bank Monzo has been given a clean bill of health from its auditors for the first time since 2019, after narrowing losses to £119mn from £131mn in the previous financial year.
The app-based bank, which raised $500 million in December before the current market downturn, is reporting a 92% surge in revenue to £154.2 million in its 2022 annual report. The increased turnover has been attributed to increased card spending in the wake of the pandemic and a surge in sign-ups to its premium fee-paying accounts.
As of June 2022, the bank counted 430,000 Monzo Plus, Premium and business customers. Over the year as whole, the bank recruited one million more customers, as deposits grew 42% to £4.4bn, with card spend increasing 50% to £24bn. Lending to customers also doubled to £259 million, helped by the roll out it buy now, pay later product Monzo Flex.
In another boost, this is Monzo's first report since 2019 where auditors have not sounded a word of caution over the business's ability to continue as a a going concern.
CEO TS Anil does not expect to return to the market for further funding this year as the firm puts its focus on long-term growth and a target to break-even.
“We’re investing and building not just for the Monzo of today, but for the Monzo that will serve many more millions globally in the decades to come," he says. "Our mission is to make money work for everyone - and Monzo is perfectly poised to become the one app customers use to manage their entire financial lives.”
Anil confirms that Monzo remains the subject of an ongoing investigation by the Financial Conduct Authority into its anti-money laundering controls.
"The fight against financial crime is a priority for us and for the industry," he says. "We’ve further strengthened our controls and will continue to invest in this area while cooperating with the FCA’s investigation. We reinforced other aspects of our governance and risk management during the year and expect this to continue through 2022."