Monzo Brings in Nubank and Barclays Veterans as IPO Speculation Grows

Hey Digital Banking Fanatic!

Monzo is strengthening its leadership team with two strategic C-suite appointments to drive its ambitious US and European expansion plans.

The UK digital bank has brought in former Nubank executive Tom Oldham as Group CFO to oversee global financial strategy, while ex-Barclays investment banker Mark Newbery will take charge as UK CFO.

Oldham will spearhead the company's expansion across Europe and into the US market, bringing valuable experience from his role as global head of financial planning and analysis during Nubank's New York Stock Exchange listing.

The neobank has been making significant strides, boasting over 10m customers and ￡11.2bn in deposits since its 2015 founding, and recently achieved a $5.9bn valuation in an employee share sale.

Gary Hoffman, Monzo's board chair emphasizes the company's global ambitions: "We believe every part of the world needs a Monzo. Tom's exceptional track record of scaling businesses in fast-moving industries, combined with Mark's experience from leading financial institutions, will help us further expand and innovate."

The bank is already setting up an Ireland office with a team of executives in place, while former CashApp head of product Conor Walsh leads the US expansion efforts.

With these strategic hires and clear international ambitions, what do you think Monzo is planning next? Share your thoughts in the comments and I'll be back in your inbox tomorrow.

Cheers,

Marcel

INSIGHTS

Digital Banking Maturity 2024 by Deloitte Digital ??

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GOLDEN NUGGET

What is Neobank and how does it make money?

?? 1. Traditional banking vs Neo banking

The diagram below shows the differences between the two. Traditional banks have physical branches and have existed for over 100 years. Neobanks only have online services and entered the market 10 years ago.

Traditional banks need to operate with full licenses, while Neobanks can operate without licenses or with partial licenses.

The competitive advantages of Neobanks are transparent fees and convenience. Neobanks offer multiple experiences including payments, home loans, and investments. In addition, Neobanks leverage AI technology to analyze credit history and finance to make suggestions.

?? 2. How does Neobank make money?

If a user swipes a credit card issued by a Neobank, $1.70 (interchange fee) goes to the issuing bank and the card network, $0.50 (acquiring fee) goes to the acquiring bank.

Neobanks have lower overheads than traditional banks, so they can increase their profit margin. Also, Neobanks make money from loans and ancillary services.

Typical Neobanks include Chime, Revolut, Varo, and Dave.

I highly recommend the complete deep dive article by HUA LI for more interesting info on this topic.

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