financial results

Challenger bank posts £1.4m loss

Mobile challenger Monzo Bank has revealed it made a loss of £1.4m during its first year of trading.

The challenger bank received its banking licence in August this year after forming in February 2015. 

Releasing its first annual results last week, which are for the period ending 29th February 2016, Focus FS Limited, the holding name of Monzo Bank, announced it had made a loss of £1.4m for the year.

Speaking to Bridging & Commercial, Monzo said: “As an early-stage start-up still building our product, we've always anticipated spending large sums in order to develop our tech, hire the best people and to do the work required to become a regulated bank. 

“We have yet to release our current account product, which will allow us to start generating revenue via overdraft lending, so naturally our recently filed annual report shows a loss.”

Since February, Monzo has already begun to receive significant investment, including £1m raised in just 96 seconds via a crowdfunding campaign. 

Also in August, Monzo revealed it was planning to use crowdfunding to help it raise up to £20m.

After announcing it had received a banking licence, Monzo reported it was planning to launch its full current account in Q1 or Q2 2017. 

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