Monzo Bank has become a household name across the UK, transforming how millions manage their money. Founded in 2015, the digital challenger bank quickly won over customers with its app-based approach, vibrant coral cards, and commitment to transparency. Today, Monzo stands as the UK’s largest digital bank, boasting over 12 million customers—a figure that represents about a fifth of the UK’s adult population. This meteoric rise has not only shaken up the high street banking scene but also set new standards for customer experience in the financial sector.
Explosive Growth and Financial Milestones
Monzo’s growth in recent years has been nothing short of remarkable. In the financial year ending March 2025, the bank recorded a 48% jump in revenue, reaching £1.2 billion for the first time. Profits soared eightfold to £113.9 million, reflecting the bank’s ability to scale while maintaining a strong focus on profitability. Customer deposits also surged by 48%, totalling £16.6 billion, and Monzo added 2.4 million new customers during the year.
The bank’s customer base has expanded rapidly, from just 250,000 in 2017 to over 12 million by April 2025. Monzo’s business banking arm has grown as well, now serving over 625,000 business customers, which accounts for 12% of its total revenue. The bank’s innovative products, such as accounts for under-16s, pensions, and new subscription plans, have helped attract a diverse range of users and boosted engagement across its platform.
Changing Habits: Monzo as a Primary Bank
One of the most telling signs of Monzo’s impact is that a third of its customers now use it as their primary bank. This shift marks a significant change in consumer behaviour, as Britons increasingly trust digital-only banks with their salaries and daily finances. Monzo’s user-friendly app, real-time notifications, and budgeting tools have made it a favourite, especially among younger generations.
The bank’s popularity is not just limited to personal accounts. Monzo’s business banking services have seen a 49% increase in customers over the past year, reflecting growing confidence among small business owners and entrepreneurs. The introduction of new features and a focus on customer service have helped Monzo maintain high levels of satisfaction and loyalty.
Financial Performance: Breaking the Billion Barrier
Monzo’s financial results for 2025 highlight its strength in a competitive market. Revenue surpassed £1 billion for the first time, with growth across all business areas, including lending, transactions, and subscriptions. Pre-tax profits reached £60.5 million, a fourfold increase from the previous year, underlining the bank’s ability to convert rapid growth into sustainable earnings.
The bank’s average revenue per user also increased, with business customers seeing a 16% rise and retail customers a 15% rise. Subscription income grew by 50% to £75.2 million, and more than one million customers now pay for premium Monzo services. Weekly active users increased by 28%, demonstrating strong engagement and regular use of Monzo’s services.
Regulatory Scrutiny: The Cost of Rapid Expansion
Despite its many successes, Monzo has faced significant regulatory challenges. In July 2025, the Financial Conduct Authority (FCA) fined Monzo £21 million for failings in its anti-money laundering (AML) controls. The FCA found that, during a period of rapid growth between 2018 and 2022, Monzo failed to gather sufficient customer information and allowed high-risk customers to open accounts with implausible details, such as using famous landmarks as addresses.
The regulator’s investigation revealed that Monzo onboarded over 34,000 high-risk customers during this time, despite restrictions imposed by the FCA. The bank’s CEO, TS Anil, acknowledged these shortcomings but stressed that Monzo has since made “significant enhancements” to its compliance systems. He assured customers and stakeholders that the issues are “firmly behind us” and that Monzo remains committed to fighting financial crime.
Learning and Adapting: Monzo’s Response
Monzo’s leadership has taken the FCA’s findings seriously, investing heavily in compliance and risk management. Since 2021, the bank has recruited financial crime experts and overhauled its internal processes to prevent similar lapses in the future. The FCA’s fine, while substantial, is seen as a necessary step to ensure that Monzo’s rapid expansion does not come at the expense of regulatory standards.
The bank’s response has been praised by some industry observers, who note that Monzo’s willingness to address its failings head-on reflects a culture of transparency and accountability. The FCA’s action also serves as a reminder that all banks, regardless of their size or technological prowess, must maintain robust systems to protect against financial crime.
