Business accounts were launched in March 2020.
Image source: Monzo Business.
Monzo has reached 100,000 business account customers, the challenger bank announced on Twitter yesterday.
The milestone is a mixture of good and bad news, on the one hand, Monzo reached 100,000 customers in 18 months, faster than Starling Bank, which took nearly two years to hit the same number.
However, Monzo’s business account growth is clearly slowing. It took the bank just six months to reach its first 50,000 accounts, after launching the account in March 2020, but 12 months to add another 50,000.
This slow-down is to be expected. The challenger bank’s initial growth was likely driven by existing customers and early-adopters, while its recent growth is coming from SMEs that are new to Monzo or switching from other business account providers.
The milestone also means Monzo now has an approximate SME banking market share of 1.6 per cent.
Last month Monzo’s annual report revealed the bank had over 210,000 subscribers between its Business, Monzo Plus and Monzo Premium offerings, generating £5m of income.
Monzo’s business account is split between a free Lite tier, and a £5/month Pro tier with additional features like invoicing, multi-user access, accounting, tax pots and more.
Overall, Monzo’s 2021 results saw the bank’s losses increase to £129.7m, up from £113.8m in 2020, while the bank also disclosed that the FCA had started an investigation into its compliance with financial crime regulation.