Monzo raises interest
As high street banks continue to struggle, Monzo shows no signs of slowing down.
Monzo has doubled its value to £2bn leapfrogging Revolut to become the second most valuable fintech start-up in the UK behind Oak North. Now with 2 million users Tom Blomfield has mentioned it could reach 3 million in a matter of months.
Monzo has amassed huge popularity amongst Millennials and Gen Z who now make up over a third of its customer base and the company places their customers above all else – including profit, which was evident when Monzo racked up losses of over £33 million last year. From its inception Monzo has embraced the Millennial ethos from the eye-catching funky tones of the coral card to playing off the lure of exclusivity by waitlisting customers or giving other customers the opportunity to offer friends a ‘golden ticket’ and skip the queue.
From the very beginning, Monzo has been entirely committed to building a product customers love and that revolves around how its customers live. Monzo users are continuously encouraged to share their thoughts on the product and suggest features they think will be useful to have. As such, Monzo has built an engaged community on social media by encouraging public discussions on Twitter and bonding with their user base.
Monzo recognised the amount of time 18-24-year olds spend on their phone placed substantial emphasis on smartphones. By teaming up with both Apple Pay and Google Pay they allow users to make payments without having to use their physical card. For many Millennials, money is a stressful business so Monzo offers services that alleviate this stress by allowing users to keep tabs on what they are spending their money on, setting monthly budgets, pushing notifications to customers the moment they use their card and enabling transactions abroad without any fees.
A commitment to considering user experience is reflected in Monzo’s customer satisfaction rates. In a new study by Which? Measuring customer’s satisfaction with their banks current account and how likely they are to recommend that brand Monzo came first with a customer score of 86% and High street banks such as TSB scored 58%. With 80% of Monzo’s marketing focused on growth through word of mouth it is no wonder this satisfaction is translating into an additional 100,000 customers a month.
This growth is also mirrored internally; Monzo had 550 employees but looking to double this year as well as placing focus on employee satisfaction. Monzo score a 5/5 on glassdoor and provide employees with a range of perks from cycle to work schemes to free meals. Employee and customer satisfaction are top of the list for Monzo and with the Millennial generation often considered disloyal and hard to please, Monzo has proven a commitment to their experience above all else, including profit, pays off.