The digital bank has been cashflow positive since October 2021, setting the stage for Anil’s statement to be realized if the digital bank can continue that streak in the coming months.
Few neobanks have attained the holy grail of profitability. Now that Monzo’s income outweighs its expenditure, it joins an exclusive club.
Weary of the potential devaluation that might come with additional fundraising, Monzo and several major U.K. digital banking players have, at various points, talked up their profitable, or near-profitable status.
The past year has also seen another neobank, Zopa, hit the crucial landmark.
Revolut, by far the largest British neobank in terms of valuation and customer base.
That has yet to materialize, however, leaving a big question mark hanging over the company’s finances amid pressure from U.K. regulators to improve its audits and internal controls for financial reporting.
In the end, neobanks that have yet to turn a profit will likely argue that business is a marathon, not a sprint. But with some of the biggest players in the space now reporting positive margins.