Has Monzo lost its ‘mojo’?

Has Monzo lost its ‘mojo’?

Wonderful Wednesday fellow FinTech Fanatic,

The title of this newsletter poses an intriguing question, sparked by the financial website This is Money. While the answer might not be crystal clear, some fresh stats about the number of people switching to and from digital bank Monzo certainly shed light on the intense competition among neobanks for customers.

London-based Monzo lost a net 7,635 switchers during the first three months of 2023, according to information gathered by This is Money.

That’s quite a contrast to 2019, when Monzo received more than 63,000 switching customers from other banks. In the last three months of 2019 it hoovered up 20,843 joining Monzo using the official switching service - more than any of the big banks in that period.

However, the declining numbers in 'switchers' for Monzo already emerged towards the end of last year, when it lost a net of 2,079 switching customers - the first time the neobank experienced negative figures.

Now Monzo sustained an even steeper drop-off of a net 7,635 switchers in the first three months of 2023, according to the most recent data.

Some experts think the drop-off in switching customers is a natural progression while others think the bank will need to offer cash bonuses like its rivals if it wants to see switchers return.

A Monzo spokesman said the latest switching numbers painted a very small part of the overall picture, adding: 'We are currently adding more than half a million customers per quarter and are the UK's 7th largest UK bank, with almost 8million customers.'

Block shuts European P2P payments brand Verse

While payments-firm Block released a gross profit of $1.87 billion in its second quarter 2023 results last week, it announced this week that it is shutting down the Cash App's Verse brand in the EU and its BNPL platform Clearpay in Spain, France and Italy, citing disappointing growth and profitability.

Spanish P2P payments app Verse was acquired in 2020 with the hope of replicating the huge success of the Cash App in Europe.

Clearpay is the European brand of Afterpay, which Block bought in a multi-billion dollar deal in 2021.

Block, formerly known as Square, is a payments company founded by Twitter co-founder Jack Dorsey. Its popular mobile app, Cash App, is a popular tool for buying and selling Bitcoin.

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