UK-based digital bank Monzo has decided to buck the trend by going ahead with plans to scale business amid slowing economic growth and volatile markets.
Monzo chief executive TS Anil said that the bank’s shareholders have backed his plans to keep investing in teams, products, infrastructure, and developing new products.
“For every question, I get on profitability, I get many times that number from investors and others asking whether we’re investing wisely for the long term,” Monzo chief told the Financial Times in an interview.
“It is incredibly important to us that we build Monzo not just for today, but for the big global ambition that we have,” he added.
The news comes as the London-based bank reported a 92% surge in revenue to £154.2m in the year through February.
During the same period, Monzo managed narrow its pre-tax losses to £119mn from £131mn in the previous financial year.
The lender is also exploring acquisition opportunities to drive expansion or growth and aims to break even during 2023.
In the UK, where it has recorded over 90% organic growth, it will invest in current products and talent.
Additionally, the digital lender revealed an investment product in the early stages of development.
In December 2021, Monzo raised £450m in funding and If the conditions are right, the bank will consider raising funds IN 2023.
Earlier this year, the bank opened gates for all customers across the US after withdrawing its banking applications there.
“We also see opportunities in other international markets, which we will continue to explore, Anil added.