Neoclassical finance

1 October 2019 By Liam Proud Follow @liamwardproud

Revolut and Monzo wooed millions of customers and secured multi-billion dollar valuations with slick apps and low fees. But they’re not earning much revenue. If flogging subscriptions and commission-based products fails, the temptation will be to lean on old-school bank charges.

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Revolut’s revenue more than tripled to 58.3 million pounds in 2018, according to the London-based digital bank’s annual report released on Oct. 1. Its loss after tax widened to 32.9 million pounds from 14.8 million pounds in 2017.

As of Oct. 1, the group has 7 million users across Britain and Europe, of which about 3.7 million are active on a monthly basis and 1.1 million use the bank’s services daily.

UK rival Monzo said on June 25 it raised 113 million pounds from investors at a valuation Reuters reported was more than 2 billion pounds.

Revolut’s Chief Executive Nikolay Storonsky said on June 21 that his company would only consider an initial public offering after achieving a private valuation of $20-40 billion, according to Financial News.

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