British app-based bank Monzo and others like it want to make money by allowing other firms access to their customers rather than lending to them, but this is an untested path to profitability.
Monzo’s user numbers soared by 300 percent to 450,000 in nine months this year, which has attracted investors and more than doubled its valuation to $336 million (£251 million).
The bank’s distinctive coral-coloured card has become commonplace in the wallets of the young and tech savvy.
But this growth has come at a cost: until recently every customer meant a loss of 50 pounds as Monzo offered services such as overseas cash withdrawals for free.
Monzo’s user numbers soared by 300 percent to 450,000 in nine months this year, which has attracted investors and more than doubled its valuation to $336 million (£251 million).
The bank’s distinctive coral-coloured card has become commonplace in the wallets of the young and tech savvy.
But this growth has come at a cost: until recently every customer meant a loss of 50 pounds as Monzo offered services such as overseas cash withdrawals for free.
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