Has Monzo lost its mojo?

Not so long ago Monzo could do no wrong. Its hot coral debit card made it a must have accessory for urban millennials and it quickly attracted millions of customers. But the golden child of UK Financial Technology (FinTech) has had a bruising year. Is it experiencing the kind of growing pains we should expect after such a meteoric rise? Or has this banking unicorn transformed into a lame donkey?

Having never turned a profit, Monzo now faces questions about its future direction; its annual report released in July really set alarm bells ringing. Amid the COVID-19 pandemic, its primary source of revenue – a 0.2 per cent interchange fee from customers using their cards has been dented, so much so that it stated that, “there are material uncertainties that cast significant doubt upon the Group’s ability to continue as a going concern.”