Monzo chief says bank has earned ‘the right to dream bigger’ as it targets the US
Monzo chief executive TS Anil has said the digital challenger bank has “international ambitions,” noting a “huge gap” in the American market, but refused to speculate on the firm’s plans for a float.
Speaking at the Financial Times’ Global Banking Summit on Tuesday, Anil said Monzo had earned “the right to dream bigger” in light of “proving the business model, winning at scale” in the UK.
“It’s clear to me that the American customer needs a product like Monzo. That’s a huge gap – it’s a market that’s very large with attractive economics,” he said. “And it’s one of the few markets in the world… where you don’t need share to get scale.”
The bank has tens of thousands of customers in the US and is focused on “building the right product for American customer,” he said.
Anil added the bank was also looking at expanding into Europe, but that there were no formal plans yet.
Alphabet, the parent company of Google, is reportedly close to a deal with Monzo to lead a funding round of up to £500m.
Anil did not comment on the reported negotiations but noted that Monzo was receiving a very high level of “inbound interest from investors around the world.”
He addressed the expectation Monzo will pursue a big-ticket public listing in the near future.
“We think we’ll make a great public company one day,” he said. However, Anil added he was currently focused on building up the business and did not speculate on the timing or location of a potential float.
Anil said Monzo continued to prioritise organic growth, although he did not rule out the firm acquiring smaller banks in the future.
“I think the tech sector – the fintech sector as well – will probably have consolidation in the coming years. And I think we’re well positioned to benefit from that part of the cycle,” he said.
“We get a tonne of inbound requests from companies wanting to partner with us, wanting to work with us.”
Monzo was founded in 2015 and has become one of Britain’s biggest digital banks. According to Anil, it has recently been drawing in a quarter of a million new customers each month.
The firm reported a £116m loss in the year to the end of February but is forecast to swing to a profit this year.