Monzo Bank, headquartered in London and founded in 2015, is a digital bank that offers services to its customers solely online without physical branches. After 2019, its gross revenue experienced a stark increase, exceeding *** billion British pounds in 2025. Alongside the bank's revenue, its total assets also experienced an increase during this time period, exceeding ** billion British pounds in 2025.

Monzo Bank, a digital banking pioneer in the United Kingdom, has seen its net operating income soar to ****** million British pounds in 2025, more than tripling compared to 2023. This remarkable growth reflects the increasing popularity of digital banking solutions and Monzo's strong position in the UK's thriving fintech sector.

Monzo Bank, a prominent UK-based digital bank, achieved a significant milestone in 2024 with its first-ever net profit of ***** million British pounds. This marks a remarkable turnaround from years of consecutive losses, including a ****** million pound deficit in 2023. In 2025, the bank's gross profit increased even further, reaching over ** million British pounds. The bank's journey to profitability reflects the broader growth and maturation of the UK's fintech sector, which has become a global leader in financial innovation.

In 2023, a notable trend emerged among leading digital banks as they all experienced a decline in their reliance on interchange fees - the transaction fees banks collect from merchants when customers use their payment cards. While these fees traditionally served as a crucial revenue stream for digital banks, data shows Revolut maintained the smallest proportion of interchange fees relative to total revenue, with Monzo and Nubank following in second and third positions respectively. This shift suggests these digital banks are successfully diversifying their revenue sources beyond the traditional card payment model.

The UK Financial Technology (FinTech) industry is highly fragmented and is expanding rapidly. In recent years, areas like peer-to-peer lending, money transfer and digital banks have performed well. Industry revenue is expected to grow at a compound annual rate of 19.8% over the five years through 2025-26 to reach £34.7 billion, including estimated growth of 12.1% in 2025-26. The industry relies heavily on third-party financing, which has proved highly volatile over recent years amid the higher base rate environment.

Government initiatives have identified the FinTech industry as an important area of future economic growth; in response, the government has put considerable effort into offering support to the industry. This has bolstered investment and facilitated industry expansion. Customers are increasingly seeing fintech as a viable alternative to traditional banks, offering more attractive savings rates and a user-friendly experience. FinTech companies welcomed the rising base rate environment, which has supported revenue growth over recent years. However, the turbulent economic conditions and threat of rising default rates have forced FinTechs to ramp up their loan loss provisions, weighing on profitability. Fintechs heavily rely in investment funds to scale up, and this has proved highly volatile in recent years, dropping in 2024 due to higher interest rates and geopolitical tensions. Going into 2025, funding activity will remain lacklustre as geopolitical tensions persist following Trump’s aggressive tariff policies. This will hit acquisition activity and force fintechs to find ways of growing organically. Industry revenue is forecast to rise at a compound annual rate of 12.4% over the five years through 2030-31 to reach £62.2 billion. Despite fundraising dropping over recent years, fintech companies will still have plenty of cash to invest and strengthen their long-term proposition to persuade customers to make them their primary bank, something a more attractive savings rate has failed to do. Competition will pick up in the coming years as traditional banks actively seek to maintain their customers, offering more fintech services like developing user-friendly apps or closing their branches.

Monzo Bank delivered a strong financial performance in 2024/25, with key growth indicators highlighting its continued upward momentum. The UK-based digital bank reported a ** percent increase in gross profit, while revenue, customer deposits, net subscription income, and total assets each grew by over ** percent.

Among global digital banking leaders, SoFi demonstrated exceptional performance in customer monetization during 2023, generating revenues of *** U.S. dollars per customer. Starling Bank secured the second position with revenues of *** U.S. dollars per customer. Following these front-runners, Monzo achieved revenues of *** U.S. dollars per customer, while Wise generated *** U.S. dollars per customer.

Revenue from the global neobanking market is expected to reach US$ 97.45 billion in 2024 and increase swiftly at 35.6% CAGR to settle at US$ 2,048.29 billion by the end of 2034.

Report Attribute	Detail
Neobanking Market Size (2024E)	US$ 97.45 Billion
Forecasted Market Value (2034F)	US$ 2,048.29 Billion
Global Market Growth Rate (2024 to 2034)	35.6% CAGR
North America Market Share (2024E)	33%
East Asia Market Growth Rate (2024 to 2034)	37% CAGR
Saving Accounts Segment Value (2034F)	US$ 1,065.11 Billion
Enterprises Segment Value (2034F)	US$ 1,167.53 Billion
Key Companies Profiled	Atom Bank PLC; Ubank Limited; Simple Finance Technology Corp.; Fidor Bank Ag; Movencorp Inc.; Monzo Bank Ltd.; MyBank; N26; Revolut Ltd.; Webank, Inc.; Albo; Green Dot Corporation; Fintech Farm; Bunq.

Country-wise Insights

Attribute	United States
Market Value (2024E)	US$ 14.31 Billion
Growth Rate (2024 to 2034)	35.3% CAGR
Projected Value (2034F)	US$ 294.22 Billion

Attribute	Japan
Market Value (2024E)	US$ 6.62 Billion
Growth Rate (2024 to 2034)	37.2% CAGR
Projected Value (2034F)	US$ 156.57 Billion

Category-wise Insights

Attribute	Savings Account
Segment Value (2024E)	US$ 46.78 Billion
Growth Rate (2024 to 2034)	36.7% CAGR
Projected Value (2034F)	US$ 1,065.11 Billion

Attribute	Enterprises
Segment Value (2024E)	US$ 52.62 Billion
Growth Rate (2024 to 2034)	36.3% CAGR
Projected Value (2034F)	US$ 1,167.53 Billion

Chetwood Financial had the highest cost to income ratio (CIR) among challenger banks in the United Kingdom in 2019, at ***** percent. This was followed by the popular online bank Monzo, with a CIR of ***** percent.

The cost to income ratio is an important financial metric in determining the profitability of banks. The measure looks at the cost of running operations as compared to a bank’s operating income. Lower ratios mean that a bank is running more profitably whereas a higher C/I ratio indicates the bank's operating expenses are too high.

Founded in 2015, Monzo Bank is one of the growing digital banks based in the United Kingdom (UK). After reporting significant losses between 2017 and 2023, Monzo Bank experienced a significant growth in its gross profit in 2024 and 2025. At the same time, its employee count increased from*** employees in 2017 to ***** in 2025.

****** emerged as the leader in gross profit among prominent digital banks in 2023, generating annual gross profits of more than *** billion U.S. dollars. Following behind were two major European neobanks: Wise, which recorded gross profits of *** billion U.S. dollars, and Revolut, which achieved *** million U.S. dollars. The year 2023 marked a significant milestone for several digital banks, as Sofi, Dave, Banco Inter, Bunq, MoneyLion, Monzo, Jago, and Wio all reached profitability for the first time since their establishment.

The United Kingdom's banking landscape in 2024 revealed a competitive field dominated by established institutions, with ******** leading the pack with ** million customers worldwide. **** followed closely with ** million customers, showcasing the enduring strength of traditional banks despite the rise of digital challengers. Interestingly, customer numbers don't necessarily correlate with satisfaction, as online banks like Starling Bank, First Direct, and Monzo Bank topped the charts for customer contentment. Market dominance and financial performance While ******** boasts the largest customer base, HSBC maintains its position as the UK's largest bank by market capitalization. As of December 31, 2024, HSBC's market value reached approximately ****** billion U.S. dollars, rebounding to pre-pandemic levels and solidifying its status as Europe's largest bank by market value. This financial strength is further reflected in HSBC's annual revenue, which towered at **** billion British pounds in 2024. Digital transformation and customer retention The banking sector's shift towards digital services has led to widespread branch closures among the UK's "big four" banks, with Barclays, Lloyds, and NatWest each shuttering over 1,000 locations between 2017 and 2024. This transition, while improving efficiency, has also resulted in significant job losses. Despite these changes, some traditional banks have managed to maintain strong customer loyalty. Nationwide, for instance, led UK banks in net current account gains in the third quarter of 2024, attracting over ****** new customers through the Current Account Switch Service. However, digital challengers like Revolut have made significant inroads, with the London-based neobank reporting over ** million global customers by November 2024, highlighting the growing appeal of digital-only banking solutions.

The United Kingdom's banking landscape is diverse, with *** Monetary Financial Institutions operating in the country as of June 2025. Of these, *** were UK-headquartered banks, while the remaining institutions had origins in other European Union countries, developed nations, America, and Japan. This mix of domestic and international banks underscores the UK's position as a global financial hub. In fact, London was the second most attractive global financial center in 2024, outranked only by New York. HSBC dominates the UK banking sector Among the largest banks in the UK, HSBC Holdings stands out as a financial powerhouse. In 2024, HSBC reported the highest annual revenue with over ** billion British pounds, significantly outpacing its closest competitor, Barclays PLC. HSBC's dominance extends beyond revenue, as it also holds the largest market capitalization on the London Stock Exchange, nearly triple that of the second-largest bank, Santander S.A. Furthermore, HSBC leads in risk-weighted assets, with nearly *** billion pounds, indicating its substantial market presence and risk exposure. Digital banks in the UK The UK is also a major hub for digital banking in Europe, with several leading digital banks in Europe headquartered in the country. Revolut, in particular, has emerged as a standout player. Revolut's net profits skyrocketed in 2024, highlighting its strong market position and continued expansion. Wise and Monzo also contribute significantly to the UK's digital banking landscape, offering innovative financial services that cater to a rapidly growing customer base.