PayRate42 Maintains its Green Risk & Compliance Rating for UK FinTech Monzo

PayRate42 has conducted a new review of the UK-based digital bank Monzo on the occasion of the recently published Annual Report 2024. The 2024 financial year ended for Monzo on March 31, 2024, and the company announced its first full year of profitability. This is a significant achievement for the bank as it looks to expand into the US and Europe.

In 2024, Monzo raised around $610 million in fresh capital based on a valuation of over $5 billion, giving it a healthy financial cushion. A short-term financial crisis is therefore not expected.

Financial Highlights
For the year ended 31 March 2024, Monzo reported a profit before tax of £15.4 million. This is the first time the bank has made an annual profit since it was founded in 2015. Monzo's revenue grew by 250 percent, reaching £880 million. This growth came from a number of sources, including more loans and subscriptions.

Customer Growth
Monzo added 2.3 million new customers last year, bringing the total to 9.7 million (+31%). This includes 200,000 new business customers. With this growth, Monzo is now the seventh largest bank in the UK by number of customers. Customer deposits grew by 88% to £11.2 billion, the company said in its annual report.

New Services and Customer Engagement
Monzo launched several new features to help customers manage their money better. These include the 1p savings challenge and a game block. Over 500,000 customers now use Monzo Plus and Monzo Premium accounts.

Based on more than 33,000 reviews on Trustpilot, Monzo has a 4.0-star rating and a "Great" trust level. This puts Monzo behind Starling, with a 4.3-star rating and an "Excellent" trust level, and Revolut, with a 4.1-star rating and a "Great" trust level.

There are currently no new statistics regarding the susceptibility of Monzo customers to fraud. However, according to 2022 data published by the UK Payment Systems Regulator on bank customers' susceptibility to authorized push payment (APP) fraud, Monzo is well ahead of Starling Bank and Metro Bank. For every million consumer transactions that Monzo and Starling sent in 2022, 141 and 127, respectively, were reported as APP fraud payments. In 2022, Monzo and Starling are also among the lowest-scoring firms for reimbursing victims of APP fraud.

Regulatory Update
Monzo is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority

The UK Financial Conduct Authority (FCA) has dropped its criminal investigation into Monzo over alleged AML failures. The decision follows a thorough review which concluded that no further criminal action would be taken against the bank. However, the FCA will continue the investigation as a civil case. Therefore, it may still result in a fine for Monzo for AML violations.

Compliance Rating

Monzo has met all of PayRate42's compliance criteria, including legal entity verification, positive reviews, and regulatory standards. As a result, Monzo has been awarded a Green Risk Rating. Given the dropped criminal case against Monzo, we can also award a Green Compliance Rating. This means that individuals and businesses have a very low risk in doing business with Monzo.

PayRate42 delivers the latest financial news and insights. Stay updated with more information on Monzo and other leading fintech companies.

Read more about Monzo:
https://payrate42.com/listings/monzo/

8 The Green
19901 City of Dover
Delaware
United States

PayRate42 is a rating agency specializing in payment processors. Our main goal is to protect merchants and consumers by providing transparency through the evaluation and rating of financial service providers. High-Risk Payment Processors (HRPP) operating outside the established regulatory framework are our primary focus.

This release was published on openPR.