As losses at the NeoBank continue, some £115M for 2020/2021. Also a factor are some ongoing AML investigations by FCA. About a one minute read.
Comment: Ok, long time readers of Fintech Flash News will know I’ve never been sold on the idea of NeoBanks, specifically start ups based on lots of hype and lacking a business plan. First of all, how many are needed? Second, VC capital isn’t limitless and, in fact, at Deutsche Bank we used to joke and call VC Vulture Capital. And third, its a competitive business.
All told, while Monzo is in trouble they may be acquired. Over 200,000 paying customers at £3.1B in deposits gotta be worth something. We’ve seen this happen to struggling startups many times.