Monzo and Revolut alerted customers of an outage due to a processing migration from a third party processor which caused customers to be unable to use cards for transactions; other digital banks affected by the third party processor migration included Starling Bank, Loot, Curve, Pockit and Uaccount; Monzo and Revolut have both reported they will reimburse customers for foreign exchange costs incurred as a result of the outage; Monzo says it has plans to move its processing to an internal unit with transactions processed on the firm's technology. Source
Business Insider shares data on total funds raised by UK-based digital only banks; Atom Bank leads in total funding and is reportedly in process of closing another 100 million British pounds ($124 million) in equity which would bring their total raised to 235 million British pounds ($294.6 million); other players include Tandem Bank, Starling Bank, Monzo, N26 and Monese; Monzo is also in the process of raising money with a Series C funding round. Source
UK digital bank startup Monzo has listed a new crowdfunding campaign on Crowdcube and is seeking to raise 2.5 million British pounds ($3.09 million) as part of a broader fundraising for a total of 22 million British pounds ($27.18 million); Business Insider provides details on growth plans outlined in the crowdfunding campaign; Monzo is currently showing a seven year plan to an initial public offering which will include an estimated 75 million British pounds ($92.67 million) in new capital in the next five years; Monzo says it will raise capital again in May 2018 and it expects to report a profit after 2020; the firm has been granted a banking license and will begin offering deposit accounts as well as overdraft lending which it expects to help improve profitability. Source
It is not very often that there is an intersection between alpacas and fintech but we learned today that Monzo...
Many staff members at the challenger banks are working from home with Starling and Revolut opting to split staff between...
Writing a guest post on FT Alphaville Victor Basta, the managing director of Magister Advisors talks bout the struggle digital banks face in making a profit; digital banks have certainly made a name for themselves and offer a better product to the consumer; rising customer acquisition costs and the tough scaling of affiliate agreements are just two of the reasons these banking startups will find it a challenge to reach profitability; the future looks like potential acquisition of digital banks for technology or merging with other fintechs to form a stronger conglomerate. Source.
Grasshopper, which relaunched a year ago and reported significant growth in 2022, will use MANTL’s completely digital commercial deposit origination process to create a more-favorable customer experience.
Current is a New York-based digital bank with around 800,000 customers, many of whom live paycheck to paycheck; they have...
UK digital bank Monzo is reportedly laying off 120 staff due to the challenges of the current economic situation; this...
Cboe Proposes Plan That Could Curb Advantages of Fast Traders European banking needs a Big Bang Hong Kong-based EMQ raises...