#FinTech / A tale of two banks: Monzo vs Starling

[Starling chief Anne Boden:] “When we closed our financial year at the end of November 2019, 926,000 retail accounts had been opened and 82,000 business and sole trader accounts. We held just over £1 billion on deposit. Now, less than nine months later, we’ve opened more than 1.5 million accounts: more than 1.25 million retail current accounts, almost 200,000 business accounts for small and medium-sized enterprises (SMEs) and almost 90,000 euro and US dollar accounts. And, as of the end of July, we held more than £3 billion on deposit.” . the challenger is adding a new account every 35 seconds…

The picture painted offers a stark contrast to… Monzo… Monzo has grown through customer acquisition but continues to struggle to convert its hip young followers into fee-paying customers.

[Anne Boden:] “I’m reminded of what Warren Buffet said at the time of the financial crisis, ‘Only when the tide goes out, do you discover who has been swimming naked’.”