Bank-led fintechs take the lead

One challenge for digital banks is that they're often playing in the second division, with most of their customers having their salaries paid into a traditional bank. The UK's Monzo says it is a leader in that regard, with about one-third of customers using it now as their main account. The bank said it increased its profits in the year to March to almost £60 million, four times the previous year, and added over 2 million customers, with deposits growing 48%. "Excluding the financial impact of the sale – which cost the group about £53 million in expenses – its pre-tax profit surged eight-fold to £113.9 million," reports Yahoo Finance. "The bank, which was founded a decade ago, cheered its first annual profit last year having grown to become the UK's seventh-largest bank with more than 12 million customers. It has reportedly been working with bankers to gear up for a potential stock market listing, although the timing and location of an initial public offering (IPO) are yet to be agreed, according to a report by Sky News last month. About one million customers paid for a subscription last year, with the group's fee and commission income increasing 38% to £329 million, it said. (CEO) TS Anil said the bank was 'just getting started', adding: 'By bringing the best of technology and banking together and remaining customer-obsessed, we're seeing accelerating growth and momentum and unprecedented customer love'."