

A short thread on the distinct strategies of British neo-banks @monzo @StarlingBank @RevolutApp
@sanjeevk_k @PriyamoniD #fintech
#1 Go-to-market Strategy
While Monzo & Revolut both went the #partnership way at launch, Starling Bank took its time with #licensing & building its own technological capabilities.
While Monzo & Revolut both went the #partnership way at launch, Starling Bank took its time with #licensing & building its own technological capabilities.
The result?
Revolut saw rapid uptake but hasn't been able to tap deposits & #lending
Monzo switched to native capabilities via banking license - interest income cha-ching!
Starling has diverse revenue streams - talk interest income, interchange, commission & #BaaS



#2 Product Portfolio
While Monzo & Starling haven't touched #Investing yet, Revolut takes the cake with #crypto #stocktrading & #gold
The real competition has now however moved onto #businessbanking. These past months Starling has grown its loan book 18x to £1 billion
While Monzo & Starling haven't touched #Investing yet, Revolut takes the cake with #crypto #stocktrading & #gold

The real competition has now however moved onto #businessbanking. These past months Starling has grown its loan book 18x to £1 billion
#3 Customer Acquisition
Clearly, there's no beating Revolut when it comes to user base.
It's available in 35 countries & recently announced its public launch in Japan. 
While Monzo, too, has gone international with USA, it is yet to see traction in the market.
Clearly, there's no beating Revolut when it comes to user base.


While Monzo, too, has gone international with USA, it is yet to see traction in the market.
#5 Financials
End of the day it all comes down to numbers.
Rapid revenue growth overshadowed by costs is a common factor across the 3 neo-banks.
Compared to the UK #Big4 banks, they lack in optimising their deposit bases to lend. Interest income WYA?
End of the day it all comes down to numbers.
Rapid revenue growth overshadowed by costs is a common factor across the 3 neo-banks.
Compared to the UK #Big4 banks, they lack in optimising their deposit bases to lend. Interest income WYA?

#6 Future Outlook
Monzo is going the #subscription route & pushing the gas on lending
Starling is SME all the way - business #marketplace, paid products, government-backed loans
Revolut is going the #SuperApp way and they've got their infinity gauntlet almost ready



A lot remains to unfold in this saga, but the hype sure isn't dying down anytime soon.
Find our complete comparative analysis deck here - https://bit.ly/35tJKkj
Find our complete comparative analysis deck here - https://bit.ly/35tJKkj