Monzo Will Be Profitable In 2023, According To The CEO

CEO TS Anil said that the British neobank Monzo would soon become profitable.

Anil said at a Financial Times (FT) event: “We will be profitable in the next financial year,” as reported by FT on Thursday (Dec. 1).

Auditors questioned Monzo’s ability to remain in business in 2020 and 2021, U.S. regulators told the neobank in 2021 that its application for a banking license was unlikely to be approved, and the U.K.’s Financial Conduct Authority (FCA) is investigating it for possible violations of anti-money laundering (AML) laws, according to the report.

According to the newspaper, Anil’s comment also comes at a time when FinTechs have been slashing costs and laying off people.

“In the tech space, you saw a lot of companies who built business models out of free or cheap cash,” Anil said, per the report. “We’ve never been one of those companies with a bloated headcount when things are good and panic when things get worse.”

Anil said Monzo is still considering the United States as its next growth goal. According to the article, the business withdrew its banking application from the nation in 2021 and currently services the market via cooperation with U.S.-based Sutton Bank.

“We’ve chosen to double down on the U.K. and not spread ourselves thin,” Anil added. “This is a market we’re poised to win in, and a geographic expansion will come on the back of that.”

 The neobank’s annual report for 2021 revealed that its losses for the 2020-21 financial year were just shy of £130 million (approximately $160 million today). Despite this, investors invested more than $500 million in the company in December 2021, valuing it at $4.5 billion.

“We’re building a responsibility, investing smartly, not just trying to burn large numbers of dollars on marketing, acquiring customers,” Anil said