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\t\tUK fintech Monzo is ramping up its lifestyle reach.\t<\/p>\n\t\t\tTuesday 19 August 2025 8:54 am
\n\t\t\t\t\t\u00a0|\u00a0\u00a0Updated:\u00a0<\/p>\n
\t\t\tTuesday 19 August 2025 4:36 pm\n\t<\/p>\n
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\t\tUK fintech Monzo is ramping up its lifestyle reach.\t<\/p>\n
Monzo has become the latest fintech darling to expand its lifestyle reach<\/a> with the firm exploring the development of mobile phone services.<\/p>\n The London-based firm<\/a> is looking to offer a Monzo-branded service to its over 12 million in account holders.<\/p>\n The service would follow rival Revolut issuing plans in April to enter the mobile market and buy now, pay later giant Klarna launching its US phone plan in June.<\/p>\n A Monzo spokesperson said: \u201cMonzo is known for transforming products \u2013 and an entire industry \u2013 to deliver a great experience for customers.\u201d <\/p>\n \u201cSo when we heard from our customers that mobile contracts can be a pain\u00a0point, we set out to explore how we could do this the Monzo way.\u201d<\/p>\n \t\t\t\t\t\t Monzo\u2019s fresh plans, first reported by Financial Times, come as UK fintechs strive to diversify their revenue streams amid a backdrop of falling interest rates. The Bank of England slashed rates to four per cent this month, down from an post-financial crisis high of 5.25 per cent last August.<\/p>\n Interest income at Monzo soared over \u00a3500m in the space of two years on the back of sky-high interest rates.<\/p>\n \t\t\t\t\tRead more<\/p>\n \t\t\tKlarna receives regulatory approval to take on Monzo and Revolut<\/a><\/p>\n \t But while rates are not expected to drop to pre-2022 sights, the gradual decline is set to take a chunk out of the firm\u2019s bottom line.<\/p>\n The digital bank said last year that every 100 basis point shift in rates impacts annual interest income by \u00a334m \u2013 the equivalent to eight per cent for the period ending March 2024.<\/p>\n Monzo\u2019s revenue increased 48 per cent to \u00a31.2bn<\/a> in the last year, as customer deposits swelled nearly 50 per cent to \u00a316.6bn.<\/p>\n In July, the neobank was slapped with a \u00a321m fine by the Financial Conduct Authority<\/a> after \u201crepeatedly\u201d opening accounts for \u201chigh-risk\u201d customers. This included onboarding customers using well-known landmarks <\/a>such as Buckingham Palace and 10 Downing Street.<\/p>\n Chief executive TS Anail said such issues had been \u201cresolved and are firmly in the past\u201d.<\/p>\n \t\t\t\t\tRead more<\/p>\n
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\n\t\t\t\t\tFintechs battle to diversify<\/p>\n<\/p>\n