If you haven’t heard of Monzo, they’re a high profile fintech start up – a challenger bank – rising to consumer fame by offering a fee-free pre-paid card service.
Like most start ups in this category, they’ve experienced massive growth in a short time. At the beginning of July this year it hit 240,000 customers, they are projecting between 500,000 and 800,000 accounts by the end of the year, and their business model is as old as time:
Begin as a loss leader: buy the market to build a massive customer base as an innovative new thing, pile ‘em high and sell ‘em cheap
Bring new products online: grow the portfolio of products with profitable revenue streams
Sell, sell, sell: trade on your unique and different brand to convert customers to these new products.