Monzo Expands Customer Base by One Million in Three Months – Insights Revealed
Monzo Becomes the Bank of Choice for SMEs, Surpassing 13 Million Customers in the UK
Monzo Business, the digital bank, is rapidly growing and is becoming the go-to choice for Small and Medium-sized Enterprises (SMEs) in the UK. The bank now serves one in eight UK businesses, with 700,000 business accounts, making it the biggest digital bank by customer numbers.
The bank's growth between April and June 2025 was driven by its strong focus on user-first design and features that cater to everyday banking needs. These include fee-free accounts, smart savings pots, salary advances, overdraft management, group accounts with bill splitting, and transparent loan and credit card options. Monzo's innovative use of AI for personalized advice, such as its AI budgeting advisor that anticipates shortfalls and provides real-time saving strategies, also contributed to its growth.
In the second quarter of 2025, Monzo gained a record 1 million new customers, with May and June being record months for the bank. Around 100,000 of the 1 million customers who joined Monzo last quarter opened business accounts. This growth has been facilitated by the broader fintech trend toward digital-first, mobile-friendly, and personalized banking services, particularly for underserved markets like MSMEs.
Monzo's under 16 account now has 650,000 customers, and the bank's debit card is known for its distinctive 'hot coral' colour. The bank also offers an investing platform, Monzo Investments, and launched 11 Exchange-Traded Funds (ETFs) through it.
Customer deposits at Monzo have risen 48 per cent to £16.6 billion, and revenues have grown 48 per cent to £1.2 billion. The adjusted profit before tax surged to £113.9 million, up from £13.9 million, indicating both strong customer acquisition and monetization during this period.
Two in three new Monzo sign-ups come from word-of-mouth recommendations, and one in five people in the UK bank with Monzo for their current account. Monzo is the seventh biggest bank in the UK by share of current accounts. The bank is one of several app-based challenger banks aiming to disrupt traditional banking.
Monzo offers various incentives, such as £20 off motoring and Sipp cashback deals, to attract new customers. Between April 2024 and March 2025, 2.4 million Monzo customers opened accounts. In the first three months of 2025, 15,515 customers switched their main bank account to Monzo.
Monzo also launched an industry-first Undo Payments tool and started offering Home Insurance. The bank's growth and success can be attributed to its commitment to providing user-friendly digital banking features, innovative use of AI for personalized advice, and alignment with the growing demand for mobile-first, low-cost financial services, especially among MSMEs and retail users in the UK in 2025.
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- Monzo's growing popularity extends to personal finance as well, offering an investing platform for customers to manage their investments.
- In addition to its business accounts, Monzo now provides Home Insurance, further expanding its financial services.
- The bank's success can also be linked to its focus on low-cost financial services, appealing to both businesses and individuals seeking affordable banking solutions.
- Leveraging AI for personalized advice, such as its AI budgeting advisor, has played a significant role in Monzo's growth within the uk's financial services sector, particularly among Small and Medium-sized Enterprises (SMEs) and retail users.
