By Aisling Finn on Thursday 17 September 2020
Of Monzo’s business users, 55 per cent are sole traders and the remaining 45 per cent are limited companies.
According to the digital bank, 55 per cent of the businesses on its books are sole traders, while the remaining 45 per cent are limited companies.
Users of Monzo’s business accounts range from videographers, Etsy sellers, bakers, digital consultants and it even has a few tech start-ups using its services, with businesses ranging from just a few months old up to SMEs over 15 years old.
Seemingly at odds with the rest of Monzo’s demographic, 70 per cent of the SMEs using its business accounts are located outside Greater London, with 58 per cent hailing from outside of Southeast England.
Jordan Shwide, general manager for business banking, said: “Over the last 6 months, we’ve heard hundreds of stories from our business community about how Monzo Business has given them peace of mind and made their lives better."
“Our vision now is the same as it was on day one – to be the centre of their business finances. We’re building Monzo Business because we believe business banking should be better, and our journey is just starting.”
The digital bank finally launched its SME-focussed account in March earlier this year, just a week before we went into lockdown, and has since expanded its business offering, further developing its desktop app and introducing new categories specifically to help with budgeting.
Monzo Business comes in two forms, a free Business Lite account which includes a basic business account, receipt scanning and web access, and a £5/month Business Pro account that adds tax pots for automatically saving towards a tax bill, invoicing, multi-user accounts and more.
Despite the economic crisis and the “material uncertainty” over its future, Monzo is still ratcheting up its user numbers.
In just one month, Monzo managed to attract 50,000 users to its Monzo Plus subscription service, an impressive feat following the bank’s last attempt at a premium offering flopping after just five months.
The digital bank has set its sights on challenging its main rivals, Revolut, which has over 500,000 SME customers, and Starling Bank, which has dominated fintech SME lending throughout the pandemic, dishing out nearly £1bn in loans despite only having 180,000 customers.