Monzo Business Crosses One Million Customers, a First for Any UK Digital Bank #

Monzo has become the first British digital bank to cross one million business customers, the company announced, less than seven years after its consumer-focused launch.

Monzo Business reached the milestone just over six years after launching in March 2020. The customer base has doubled in fewer than two years, and the bank now has at least one business customer in every one of the UK’s 121 postcode areas. Combined with its personal banking base, Monzo says it now serves more than 16 million customers across the country.

Monzo says one in six UK businesses holds an account with it, rising to one in five among more recently formed businesses. The bank also topped the most recent Current Account Switch Service annual rankings for SME and charity accounts, taking the title of the most switched-to business account in the country.

Jordan Shwide, General Manager of Monzo Business, said the milestone reflected the trust small-business owners had placed in the bank since its launch. He credited the bank’s focus on faster payments, tax-saving pots, and integrated expense management as the drivers of that growth.

The announcement comes alongside new research commissioned by Monzo showing that demand for digital-first business banking has accelerated sharply since the pandemic. More than two-thirds of SMEs (68%) say they now rely on digital banking more heavily than they did in 2020, with 63% reporting that they expanded their use of digital tools during that period. Separately, 61% of SME respondents said they want their bank to offer financial management tools beyond a basic account.

Monzo reported its third consecutive profitable year in its most recent full-year results, with revenue of £1.7 billion and adjusted pre-tax profit of £172.6 million, while the business banking division posted 45% customer growth in the same period. The company has not confirmed a timeline for a potential IPO.

Source: Yahoo Finance / PA Media