Ratio of customers won by Monzo Bank in the UK 2018-2023

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 the first two quarters of 2023, however, the ratio of customers gained dropped notably.

Monzo loosing customers

Seeing customer growth is likely the most important drive for any bank looking to cause a disruption in the market. Monzo has successfully won customers from other banks in the United Kingdom before the end of 2022. In the last quarter of 2022, Monzo saw more than one new customer switch to other services for every customer who joined them. This trend continued in the first two quarters of 2023, with the latter one marking the third consecutive quarter that Monzo had a negative customer acquisition ratio. With a ratio of negative 1.9, Monzo was still above the average ratio. In total, Monzo saw a net loss of more than 9,080 customers in the second quarter of 2023.

Disruptor banks

In 2022, European disruptor banks have continued the trend of attracting new customers. The London-headquartered mobile bank Revolut currently boasts approximately double the number of customers as any other digital bank in Europe. A number of online banks in Europe have received venture capital funding and are now considered unicorns.