Is Monzo in trouble?

With losses of £114 million in the last year, should you be worried as a Monzo user?

When Monzo’s 2020 Annual Report was published last week, a number of quotes made their way onto the financial pages of newspapers and websites.

There were headlines declaring Monzo faced “Significant doubt” it could continue and “material uncertainties” of its future.

A big part of this was driven by £113.8 million loss – double that of the previous year.

So if you use Monzo should you be worried?

Well, in short no. At least not right now.

For a start any money in your account is protected up to £85,000 thanks to the Financial Services Compensation Scheme (FSCS). So if it did go under, the government would guarantee you get your money back.

On top of this Monzo said in the Annual Report that it has enough cash for at least another year, making it a going concern.

So for now, there’s no need to panic. And hopefully Monzo can turn things around to generate more income.

Of course some of you super-Monzo fans might be keen to know there are things you could do that would help Monzo. I’ve outlined some of them in my video below.

My video looking at the issues facing Monzo – you can watch it on YouTube too

For subtitles, press play and then hit the CC button at the bottom of the video (you might need to tap the video or hover your mouse over it) and you’ll be able to get auto-generated subtitles.

For a transcript, you’ll need to click through to YouTube. Then hit the three dots under the video to access all the subtitles at once. Remember they have been auto-generated by YouTube so there might be the odd word where it thinks I’ve said something else.

If you find this useful, please click to watch this video over on YouTube and then click the “thumbs up” icon as it helps the video appear higher up in YouTube’s search results.

Don’t forget to subscribe to my YouTube channel for more videos.

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