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UK challenger bank annual reports are all in.
A few highlights
A few highlights
Monzo customer growth is slowing down, but not the others. Revolut is now at 13m customers.
"We’ve seen organic customer growth slow as word-of mouth drops." Monzo founder
"We’ve seen organic customer growth slow as word-of mouth drops." Monzo founder
Lending is hurting.
Both Monzo and Starling provisioned more for bad loans last year than they earned in interest income. They'd have been better off not lending a penny! https://twitter.com/MarcRuby/status/1292091212330151937
Both Monzo and Starling provisioned more for bad loans last year than they earned in interest income. They'd have been better off not lending a penny! https://twitter.com/MarcRuby/status/1292091212330151937
Reliance on interchange is still high.
In spite of its diversification into other areas, cards is still 63% of Revolut's income. But subscription fees do make up >40% of the admin expenses.
In spite of its diversification into other areas, cards is still 63% of Revolut's income. But subscription fees do make up >40% of the admin expenses.
Between them they sit on ÂŁ4.8bn of customer deposits.
• Starling has the highest balances because of its corporate skew.
• Monzo's deposits per customer are going up as they go after salaries.
• But Revolut's are going down, as they focus on customer growth.
• Starling has the highest balances because of its corporate skew.
• Monzo's deposits per customer are going up as they go after salaries.
• But Revolut's are going down, as they focus on customer growth.
The challengers are all doing ÂŁ20-25 of revenue per customer. But costs are still going up and combined losses were ÂŁ276m last year.
Fortunately they all raised capital this year and have enough runway to give it a shot.
Fortunately they all raised capital this year and have enough runway to give it a shot.
