Monzo recorded a post-tax loss of £47.2m for the year to February 2019, according to its latest annual report.
The digital bank had recorded a post-tax loss of £30.5m in the previous year.
However, Monzo has seen customer deposits increase by £390.5m to £461.8m (February 2018: £71.3m).
The digital bank also saw 1.01 million new customers join, giving it a total of 1.6 million customers (February 2018: 590,000).
“We’ve grown revenue considerably: we’ve just crossed £40m of annual run-rate revenue (based on May 2019 revenue), but there’s still plenty of work to do to get to profitability,” said Tom Blomfield, chief executive officer at Monzo.
“Around 30% of active users deposit at least £1,000 per month (our definition of ‘salaried’), up from 13% a year ago.”
He added: “Our total cost to run an account is also an order of magnitude cheaper than high street banks.
“Engagement, retention and customer service remain industry leading.
“We still need to make more revenue to become profitable as a business, but we’re showing good progress on that front.”
Monzo recently raised £113m of new equity capital, which increased its valuation to over £2bn.
-
Temenos partners with ClearBank for cloud payments
Banking software company Temenos has formed a strategic relationship with ClearBank to provide banks with a faster route to market for real-time cloud payments...
-
Unity Trust Bank registers 34% rise in profits
Unity Trust Bank increased profits by 34% in 2019...
-
Believe the hype – why explainable AI is a trend that’s here to stay
Technology has become a ubiquitous part of our day-to-day lives...
-
Piloting tech updates: ‘The bigger the bank, the harder it is to get anything done’
In the latest Medianett filmed roundtable session, we discussed how important technology is in the banking space, and what impact the industry expects it to have on its businesses in the future...
-
What banks need to know about cloud security
One of the most common perceived concerns when adopting the cloud is the issue of security...
-
OakNorth sees 95% increase in pre-tax profits
OakNorth Bank has announced a 95% rise in pre-tax profits in 2019 to £65.9m, up from the £33.9m recorded in 2018...
-
Redwood Bank signs up to Women in Finance Charter
Redwood Bank has announced that it has signed up to the Women in Finance (WIF) Charter...
-
Masthaven launches digital Women in Leadership programme
Masthaven Bank has launched a new Women in Leadership digital development programme for female senior leaders...
-
Protecting against supply chain disruption and the domino effect
Disappointingly, many UK SME business owners don’t understand their supply chains...
-
Confused about which Isa to choose? Hopefully this mini-guide will help…
We are now firmly in Isa season, so you’re likely to read multiple articles about the most competitive Isa products in the market and how best to make the most of your Isa allowance before the end of the tax year...
-
Garden shed entrepreneurs contribute £16.6bn to the UK economy
Entrepreneurs who run their businesses from garden sheds contribute £16.6bn annually to the UK economy, according to a recent study...