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UK challenger bank annual reports are all in.
A few highlights
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A few highlights
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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& #39;d have been better off not lending a penny! https://twitter.com/MarcRuby/status/1292091212330151937">https://twitter.com/MarcRuby/...
Both Monzo and Starling provisioned more for bad loans last year than they earned in interest income. They& #39;d have been better off not lending a penny! https://twitter.com/MarcRuby/status/1292091212330151937">https://twitter.com/MarcRuby/...
Reliance on interchange is still high.
In spite of its diversification into other areas, cards is still 63% of Revolut& #39;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& #39;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& #39;s deposits per customer are going up as they go after salaries.
• But Revolut& #39;s are going down, as they focus on customer growth.
• Starling has the highest balances because of its corporate skew.
• Monzo& #39;s deposits per customer are going up as they go after salaries.
• But Revolut& #39;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.
More on the current state of online lending here. https://netinterest.substack.com/p/online-lending-the-good-the-bad-and">https://netinterest.substack.com/p/online-...
