Monzo founder Blomfield exits as pandemic takes toll

colsten

https://www.finextra.com/newsarticle/37317/monzo-founder-blomfield-exits-as-pandemic-takes-toll

London7766551

Sounds like they have become too big, too fast, and Covid has been thrown into the mix. Would be surprised if they are still around in five years time (to be clear, there is no indication anything is going to happen to them)......

Monzo, founded in 2015, has been having a rough time recently. Though it told Reuters back in February that it planned to hire around 500 people this year, the company has since been scrambling for funding, seeking to raise between £70 million and £80 million to see it through the disruption—at a 40% discount on its previous valuation of £2 billion.

In March, CEO Tom Blomfield - who has since moved on to take up the role of president—hit out at rumours about an imminent collapse, insisting "Monzo is not going bust."

https://www.forbes.com/sites/carlypage/2020/06/04/uk-challenger-bank-monzo-lays-off-8-of-staff-due-to-covid-19-fallout/?sh=1bf065617d57

Shakin_Steve

I doubt they'll go to the wall, but I've emptied my account anyway. It was a novelty when I opened it but, like all novelties, it's worn off.

gsmh

Shakin_Steve said:

I doubt they'll go to the wall, but I've emptied my account anyway. It was a novelty when I opened it but, like all novelties, it's worn off.

Yeah, I was like that with Starling.

MDMD

Shakin_Steve said:

I doubt they'll go to the wall, but I've emptied my account anyway. It was a novelty when I opened it but, like all novelties, it's worn off.

I’m the same, I’m keeping it for free travel spending but I haven’t been anywhere for over a year for obvious reasons (and plenty of others give that).

It’s just being kept in “stock” until a new switch offer comes along that I haven’t already used.....

wiseonesomeofthetime

My main account, and perfectly happy to keep it as such.

Lightning360

A lot of the traditional banks have also caught up with the features Monzo was offering. It doesn't offer that many unique features anymore.

adamp87

I think they also struggle with making money from customers. Credit cards would be a way to do so but in the current market the risk is probably too high. 

Along with potentially a lot of their customers actually not being those who have a lot of money that’s needed to grow further.

I enjoy the interface on the app and starlings too.  But as much as everyone complains about high street bank apps I find they are mostly the same to be fair, just not as quick or slick.

Shakin_Steve

I went through the phase of opening accounts for the perks. I ended up with seven current accounts (not a lot compared to a good few on here), but got fed up with servicing them. I'm down to five now, two being Monzo and Metro which only have pennies in them. 

I have kept my longest standing account with Barclays and the two Tesco accounts I opened for the 3% up to £3000. I've had my fun and I'm quite happy with just two providers for the moment.

wiseonesomeofthetime

I had eleven at one stage!

Now down to seven.
Six have particular purposes, e.g. feeding RS
Metro is open will £0 in it. Only opened it for their 1.80% one year fixed saver in Oct 2019. Remember those rates?
FD has £0 running balance but feeds RS, until April. Then it becomes another spare.

realaledrinker

I received 'Banking on IT' by Anne Boden, CEO of Starling,as a Christmas presey (sad I know but an excellent read).  Bloomfield was her No.2, got ideas above his station and left to form Monzo with most of her management team.  His ethics and business practices seem dubious to me so no tears shed here.