Ratio of customers won by Monzo Bank in the UK 2018-2024
Established in 2015, Monzo is a UK-based retail bank that provides current accounts to individuals, limited companies, and sole traders. With no physical branches, Monzo is one of a growing number of disruptor or challenger banks that run accounts online through mobile apps. Between 2018 and 2022, Monzo increased its customer base steadily, along with displaying several other positive indicators. In 2023, however, the ratio of customers gained dropped notably.
Monzo's customer trends
Customer growth is often considered the most critical driver for banks seeking to disrupt the market. Monzo experienced significant customer challenges in the United Kingdom, with net customer losses throughout 2022 and 2023. In the last quarter of 2022, the bank lost more than one customer for every new customer acquired. This negative trend persisted through 2023, with each quarter showing a negative customer acquisition ratio. However, the second quarter of 2024 marked a turning point, with Monzo achieving a positive acquisition ratio of 1.1 percent, which exceeded the market average. During this quarter, over 1,000 new customers joined the bank, signaling a potential recovery in its customer growth strategy.
Disruptor banks
In 2024, European disruptor banks continued to attract new customers. Revolut, headquartered in London, has emerged as the leading digital bank in Europe, significantly outpacing other digital banks in customer numbers. Several online banks in the region have secured venture capital funding, achieving unicorn status. As of September 2024, Monzo ranked as the third most valuable online bank unicorn in Europe.
