Monzo Confirms Expansion To The Lucrative Wealth Management Industry
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UK neobank, Monzo, is planning to venture into the pensions market. The neobank will be venturing into this area by hiring a product manager in charge of the retirement proposition at the bank.
Monzo plots to expand into the pensions market
The new hire will be part of Monzo’s savings and investments team. The savings and investments division is a new unit created by Monzo that will guide the bank’s expansion into the lucrative wealth management industry.
The new pensions product manager will also spearhead a multidisciplinary team in launching and scaling the pension products offered by Monzo. The company has said that the starting salary for this hire will range between £75,000 and £100,000. The individual will also work on defining a long-term product strategy for the pensions business and work with external parties to meet the company’s objectives.
The job ad also said that the individual will work on understanding the customers and their retirement issues. It will also guarantee the company has well-outlined objectives and goals while empowering the team to make decisions swiftly.
“You will be focused on understanding key customer pain points and problems when it comes to retirement, ensuring the team has clear goals and objectives, empowering the team to make decisions quickly, and making sure those decisions are executed successfully,” the job ad said.
Monzo moves to profitability
The new hire comes shortly after Monzo announced that it had moved into profitability for the first time within the first two months of the new fiscal year. The bank is currently exploring options to promote profitability and foster expansion across Europe through a neobank with a significant market share. One of the prospects to achieve this expansion is Nordic Bank Lunar.
In the annual financial results for the fiscal year ended February 2023, Monzo noted that the net operating income came in at £214.5 million, nearly double on a year-over-year basis from the previously reported $114 million. The losses reported by the bank also hit £116.3 million during the period, which was lower than the £119 million net loss reported last year.
The company also hit profitability for the first time during the first two months of the fiscal year. The Chief Financial Officer at Monzo, James Davies, said that the neobank was now a business dealing in the diverse offering, with the revenues also stabilizing from a vast, growing, personal and business clientele base.
The CEO of Monzo, TS Anil, also spoke to CNBC in an interview, saying that profitability was always a choice for the company as it balanced a continuation of investments in growth with profitability. The executive noted that the company could have opted to become profitable a few quarters ago.
Monzo’s move toward profitability can be attributed to a significant increase in income from new revenue lines like lending and subscriptions. The paid accounts on this platform have now reached 350,000.
