Hoffma and Qatar and Monza

Monzo Bank Ltd
Annual Report
& Group Financial
Statements 2020
29 February 2020
Registered number:
09446231
Registered office:
Broadwalk House
5 Appold Street
London EC2A 2AG
What’s in
this report?
03 Strategic report 71 Group Directors’ report

04 Who we are and why we’re here
05 History
77 Statement of Directors’
06 Monzo at a glance
responsibilities
07 Our Board team
79 Independent auditor’s report
11 Our Executive team
12 Chair’s review 91 Statement of
14 President’s review comprehensive income
16 Chief Executive’s review
17 Our statement on COVID-19
93 Statement of financial
20 Our business model and strategy
position
22 A review of our performance
95 Statement of changes
30 Risk management at Monzo
in equity
44 Governance at Monzo
97 Statement of cash flows
55 Non-Financial Reporting
requirements 99 Notes to the financial
58 Our approach to the environment statements
59 Our approach to people
66 Our community and social matters
69 Respect for human rights,
anti-corruption and anti-bribery
03 Monzo Bank Limited Group Annual Report 2020
Strategic
report
Who we are and

why we’re here
We’re Monzo, a bank that lives on your phone. For More than four million people now have our
too long, banking has been harder than it needs hot coral cards to manage their money and
to be. By solving your problems, treating you fairly spend around the world. But it’s not just about
and being transparent, we believe we can make how many people have Monzo, it’s also about
banking better. who those people are. More than one million
people in the UK don’t have access to vital
Traditional banking wasn’t built for the way banking services. We want to help the financially
we use money as part of our everyday lives. So excluded access bank accounts, support
we’ve made it our mission to make money work vulnerable customers and develop an empathetic
for everyone. Managing your money should be approach to debt management. Through clear
effortless, not complicated or stressful. communications and educational content, we’ll
do our part to improve financial literacy and help
We want to make sure you get the most out of everyone understand their money better.
your money, whether that’s by easily switching
your savings provider or understanding your
credit score. And with the help of our amazing
community who suggest features, give feedback
and help us test the app, we can build the kind of
bank you want to use, together.
History
FY20161 FY2017 FY2018

Our co-founder Tom Blomfield set We released the Mondo public The big one: we got our full UK
out our mission in a blog post on 1 Beta app. banking licence.
June 2015:
We ran the fastest crowdfund in Another crowdfund, aiming for £2.5
“Mondo is a new challenger bank history: people pledged £1 million in million… In the end, 41,267 people
in the UK, focused on making your just 96 seconds. pledged more than £12 million.
financial life easier, rather than trying
to catch you out with penalty fees We changed our name! Around 10,000 We started rolling out our first full
and charges. We’re building a current Mondo customers suggested new current accounts to early testers.
account that lives on your smartphone names, with the only criteria being
and gives you control of your money.” it needed to start with ‘M’… and we
became Monzo.
We started out with a prepaid account
and around 5,000 Alpha cards.
FY2019 FY2020
We finished upgrading from prepaid Over the course of FY2020, 2.3 million The Monzo app got even better, with
to full UK current accounts, and 94% people joined Monzo. the introduction of Salary Sorter,
of active account holders moved their Bills Pots, Get Paid Early, loans,
accounts over. We announced a new investment overdrafts, energy switching and a
round of £113 million. savings marketplace.
We announced a new investment
round of £85 million. We launched our first TV ads and were We launched a first test of business
named the UK’s most recommended accounts to 2,500 small businesses.
Crowdfunding time again – we brand by YouGov.
raised £20 million in record time
and welcomed more than 36,000 The Current Account Switch Service
customers as investor shareholders. (CASS) announced that Monzo had the
highest net switching gains of any UK
bank for the first time.
1 Our Financial Year (FY) runs from 1st of March to

28th/29th of February.
Monzo at
a glance
Customers Customer deposits

increased by 2.3m increased by £930.7m
FY2019 FY2020 FY2019 FY2020
1.6m 3.9m £461.8m £1,392.5m
Customer spend using Savings Marketplace

Monzo increased increased
by £7.3bn by £636.5m
FY2019 FY2020 FY2019 FY2020
£3.6bn £10.9bn £165.5m £802.0m

Our Board team
Gary Hoffman
Chair of the Board of Directors
Gary joined Monzo on 1 February 2019. He has extensive experience in

He started his career at Barclays where financial services including retail
he stayed for 25 years and he took on banking, insurance and consumer
several senior roles before becoming lending and led significant growth
the CEO of Northern Rock, steering stories and turnarounds while also
them successfully through the 2008 innovating along the way. He has led
financial crisis. He then went on to companies of significantly different
become the CEO of NBNK Investments scale and ownership structures while
and later CEO for Hastings Insurance making sure customers and colleagues
Group which he led through an IPO, as are served in a resilient and reliable
well as serving as Non-Executive Chair way with the right frameworks and
of Visa Europe and Non-Executive governance in place.
Director of Visa Inc.
External appointments: Gary
currently serves as Chair of Coventry
Building Society and Chair of the
Premier League.
Tim Brooke Keith Woollard Amy Kirk

Senior Independent Non-Executive Independent Non-Executive Director Independent Non-Executive Director
Director
Keith Woollard is also Chair of our Amy Kirk is also Chair of our
Tim Brooke is also Chair of our Audit Risk Committee and joined our Remuneration Committee and joined
Committee and joined our Board on Board on 23 May 2016. Keith is a Monzo’s Board on 24 January 2017.
15 September 2015. He has extensive risk and compliance specialist with She brings more than 25 years’ of UK
risk and governance experience in the more than 40 years’ experience in a and international retail banking and
financial and professional services number of senior positions across the consumer lending experience, having
industry, gained through a number of financial services sector including held executive positions in lending,
senior executive roles at JP Morgan M&S Bank where he was also a risk and operations at Wonga Group
Chase & Co., PwC and Protiviti. Board member, Post Office Limited Ltd, OneSavings Bank plc and Bank of
and Financial Services Authority. America Europe Card Services. Prior
He also has board leadership and His key areas of expertise include to her move to the UK, Amy was the
corporate strategy skills having served governance frameworks, supporting Director of Credit for the largest credit
as both Board Chair, Audit and Risk growth through risk management and card issuer in the United States, MBNA
Committee Chair and Non-Executive retail banking. America. Amy has deep experience in
Director for a number of companies credit and fraud strategy, and portfolio
including PIB Group Limited, Capita plc External appointments: None. risk management.
and Charter Court Financial Services
Group plc. External appointments: Amy is a
non-executive director of FCMB Bank
External appointments: Tim is currently (UK) Ltd.
a non-executive director of Butterfield
Mortgages Ltd and director of several
PIB Group companies.
Phillip Riese Fiona McBain Eileen Burbidge

Independent Non-Executive Director Independent Non-Executive Director Investor Non-Executive Director
Phillip Riese joined Monzo’s Board on Fiona McBain is our newest Eileen joined our Board on 21 April
1 July 2019. He brings more than 20 independent non-executive director, 2015 as a representative from Passion
years’ of high performance operating joining the Board on 1 January 2020. Capital, our major shareholder. In
experience, in key executive roles She has more than 35 years’ of addition to her role in helping establish
within consumer financial services regulated retail financial services and lead Passion, Eileen also serves
including 18 years at American experience, in industry and as an as HM Treasury Special Envoy for
Express and chairing the Board of auditor, both in the UK and US. Fiona Fintech. She previously acted as Chair
Zopa. Phillip then established his brings wide-ranging strategic and of Tech Nation and was a member
own investment company Riese & operational experience at both board of the Prime Minister’s Business
Others where he applies his strategic, and senior executive management Advisory Group. She brings extensive
operating and data analytics expertise level. She was Chief Executive of technical knowledge from a broad
to investing in and advising fintech a dual regulated financial services range of industries including wireless/
companies globally. group operating across the UK and the mobile, internet consumer application,
Republic of Ireland for 11 years. and communications. Her particular
External Appointments: Phillip expertise includes product, business,
serves as a non-executive/investor External Appointments: Fiona McBain and market development.
director for several Riese & Others is the Chair of Scottish Mortgage
portfolio companies. Investment Trust plc and also serves External Appointments: Eileen
as an independent non-executive Burbidge serves as an independent
director of Dixons Carphone plc and non-executive director of Dixons
Direct Line Insurance Group plc. Carphone plc and also serves as a non-
executive/investor director for several
of Passion Capital portfolio companies.
Miles Grimshaw Alwyn Jones TS Anil

Investor Non-Executive Director Chief Financial Officer Chief Executive Officer
and Executive Director and Executive Director1
Miles has been a General Partner at
Thrive Capital since 2013 and joined Alwyn is our Chief Financial Officer and TS is a highly respected financial
our Board on 21 February 2017. Thrive joined the Board on 9 April 2019. Alwyn services and payments leader, with
Capital is one of our main investors. is a highly experienced retail banker more than 25 years’ of retail banking
An expert in software and internet with more than 20 years’ experience experience. As Monzo’s new CEO,
investments in private companies, having specialised in the sector both he brings his expertise from Visa,
Miles graduated with BA. in Economics from an advisory perspective with Standard Chartered, Citigroup and
from Yale University. Citigroup and Bain & Company, and Capital One in roles that have spanned
directly at Barclays where he led their the world, including the US, Singapore,
External Appointments: Miles consumer lending business, the largest Canada, Japan and India. He has a
Grimshaw serves as a non-executive/ digital lender in the UK. He brings deep wealth of experience launching new
investor director for several of Thrive experience of the financial services products, developing innovative
Capital portfolio companies. sector across multiple countries payment technologies, transitioning
covering strategy development, existing business towards new growth
capital markets, corporate finance, opportunities and much more.
retail and digital financial services and
operational execution. External Appointments: None
External Appointments: None
1 Subject to PRA approval

Our Executive team
Tom Blomfield TS Anil

Co-founder and President Chief Executive Officer
and Executive Director1
Alwyn Jones Sujata Bhatia Mike Hudack

Chief Financial Officer Chief Operations Officer1 Chief Product Officer
and Executive Director
Lisa Nowell Jonas Templestein

Chief Risk Officer Co-founder and
Chief Technology Officer
1 Subject to PRA approval

Chair’s review
Gary Hoffman As I look to the year ahead, I’m clear about the
responsibilities that flow from our success and
Chair, Board of Directors our planned growth. Responsibilities which we
take seriously. We might make mistakes, but we
learn quickly and we’re open and honest. So, I
believe these are our key areas to focus on over
the next year.
As I reflect on my first year as Chair, I feel very
• Building and implementing our long-term
proud that it’s been a year when Monzo has truly
business model to help us, and our customers,
shown it can be a real challenger to the high
through the ongoing COVID-19 pandemic and
street banks.
set us on a path to become profitable and more
sustainable.
Looking back over the year, we’ve accomplished
a huge amount. • Being operationally robust and resilient to serve
our loyal customers who use Monzo every day.
• We’ve grown from 1.6 million customers to over
4 million, becoming really important to the UK • Continuing to improve our risk management
banking industry. We wouldn’t have managed and controls by building the right tools and
this without the hard work and dedication of applying them properly.
our colleagues, so thank you to them.
• Continuing to develop our financial crime
• We’ve greatly enhanced our capabilities across control framework to keep our customers safe,
all areas of the business by hiring even more reduce financial crime, and to be in line with our
experienced people. regulators’ expectations.
• We strengthened our Executive team with Lisa • Further evolving our governance model to meet
Nowell joining as our Chief Risk Officer, Mike new challenges, like the COVID-19 pandemic
Hudack as Chief Product Officer and Sujata and growing our business in the US.
Bhatia as Chief Operating Officer.
• Continuing to strengthen our Executive
• We’ve improved our governance and continued team, and most importantly to grow in line
to build on our regulatory relationships. with regulatory expectations and maintain
customer delight.
• We launched a debit card in the US and
submitted our US Banking Charter application.
After five years as CEO, in May 2020, Tom I am looking forward to overcoming the current
announced he would be stepping into the new economic climate we face this year and
role of President. This gives him more time continuing Monzo’s journey to challenge the
to focus on the longer-term vision, investor banking industry.
relations, and how to stay close to and best
serve customers. I’d like to thank Tom for his
brilliant leadership to date and I look forward
to continuing to work with him. I’m pleased to
welcome TS Anil as our new CEO, subject to
regulatory approval, who joined us in February
2020 as our US CEO and interim Head of Gary Hoffman
Borrowing. TS brings a wealth of banking and Chair, Board of Directors
financial services experience from his previous 29 July 2020
executive roles at Visa, Standard Chartered Bank
and Citi.
We’ve also strengthened our Board of

Directors in the last financial year. And I’d like
to welcome Phillip Riese and Fiona McBain,
who we appointed as Independent Non-
Executive Directors in July 2019 and January
2020 respectively.
As I mentioned last year, Phillip is an experienced

non-executive who comes with a wealth of board
experience in banking and fintech.
Fiona brings a huge amount of board and

management experience. Formerly CEO of
Scottish Friendly, she now sits on a number
of company boards including Dixon Carphone,
Direct Line Insurance and Scottish Mortgage
Investment Trust plc, which she chairs.
President’s review
Tom Blomfield Our focus right now is on becoming a sustainable

company that’s here for the long haul. In last
President year’s annual report, I wrote that “we’ve just
crossed £40m of annual run rate revenue”, and at
year-end we’d more than doubled that to £90m.
This was mainly a result of our growing customer
base spending and borrowing more with us,
The last 12 months have been really significant helping us earn more fee and interest income.
for Monzo, with over 2 million people joining us,
helped by a wildly successful TV campaign and We’ve recently closed a new funding round
being named the UK’s most recommended brand bringing in a significant amount of new money,
by YouGov. We now have more than 4 million which will help to see us through the economic
customers and with a Net Promoter Score® (NPS)1 downturn and ensure Monzo can continue
of +75, those customers continue to tell their to grow. From a product perspective, we’ll be
friends about us. releasing features and products that solve
customer problems and bring in new revenue
But, the impact of the COVID-19 pandemic poses streams. We’re also focusing on reducing costs
a significant risk to the UK and global economy, by making our customer service even more
and this year will be a challenging time for efficient, and making it as hard as possible for
many businesses, including Monzo. With this people to use Monzo to commit financial crime.
unexpected change in landscape, we’ve seen Our aim here is to make Monzo the safest bank
organic customer growth slow as word-of-mouth for customers in the UK and reduce the costs
drops, and we’ll see reductions in revenues and of financial crime, so as Gary mentioned in the
higher credit losses. We’ve been able to adapt Chair’s review we’ll be focussing on this area in
quickly to this change, and I’m proud of how the coming year.
well the team has responded to the pandemic,
launching features and improvements that really
help our customers at this time.
1 Net Promoter, Net Promoter System, Net Promoter Score, NPS question: How likely is it that you would recommend our company/
and the NPS-related emoticons are registered trademarks of Bain product/service to a friend or colleague? The scoring for this
& Company, Inc., Fred Reichheld and Satmetrix Systems, Inc. The answer is most often based on a 0 to 10 scale. The score is given
Net Promoter Score is calculated based on responses to a single on a scale from lowest, -100, to highest, +100.
Over the last year, we continued to launch During the past 12 months we’ve also massively
products and features that give people better strengthened our Executive team. Lisa Nowell
visibility and more control over all their money. joined as our Chief Risk Officer, Mike Hudack has
Customers who get their salary paid into Monzo joined us full time as Chief Product Officer and
can now get paid a day early and use features Sujata Bhatia joined us as Chief Operating Officer
like Salary Sorter and Bills Pots to manage their in June. Together they bring an invaluable amount
money better. of experience to the team and I’m excited to
have them onboard. Looking after our customers’
We launched Monzo Business and already have money is our priority and we’ll continue to
more than 36,000 businesses banking with us. work hard to keep the trust they place in us.
Over the course of this year, we’ll continue to Additionally, I’m especially excited that TS Anil
build new features for our business customers, will be taking on the role of UK CEO, as I step into
and we plan to bring Monzo Business accounts to the role of President.
thousands more. Our business accounts look set
to become a substantial revenue stream over the This year will be pivotal. We’re all working
next 12 months. towards our mission of making money work for
everyone, which is even more important in these
On top of this, I’m proud to say we’ve maintained difficult times.
our focus on financial inclusion and education.
Only last year, 2.4 million people read our financial
education articles online and we piloted our
Banking 101 financial education initiative with 10
charities in the social inclusion sector. This has
already helped vulnerable people across society
with things like opening a bank account and Tom Blomfield
managing money. As this pandemic shifts how President
people run their day to day lives, it’s important 29 July 2020
that we respond with content and products that
really bring value at this time.
Chief Executive’s
review
TS Anil The next step involves taking all of that, and

combining it with the best in risk management,
CEO compliance, and governance. And in doing so,
building a sustainable, profitable business that’s
here for years to come. This won’t be easy, and
we won’t get it perfect every time. But I’m fully
committed to making it work, together with
First and foremost, I want to thank Tom and the the exceptional Executive team the founding
whole company for welcoming me to the team in members have built here at Monzo.
February. Tom’s passion, commitment and drive is
something I admire hugely and I look forward to Similar to many businesses, we’re seeing a
working with him even more closely. significant impact from COVID-19 and the
resulting economic downturn. While I’m confident
When I joined Monzo earlier this year, I knew I these are short-term, we’ve taken decisive
was joining an innovative and exciting company, measures to reduce the financial impact. Over
but could never have imagined what it was really the coming months, we’ll launch powerful new
like on the inside. During my short time here, I’ve products that help people manage their money
had the opportunity to work with some of the better, as well as drive revenue, and cement our
smartest, most ambitious and empathetic people place as the UK’s most recommended and fastest
I’ve ever worked with. It’s clear we’re building growing bank.
something special. I’ve witnessed the incredible
problem solving, creativity and dedication of this At the core of Monzo, we have something that
whole company in the face of one of the most truly helps people, makes their lives better,
stressful global situations that any of us have and that is on the road to making money work
faced, or will ever face, and I’m honoured to be for everyone.
part of this community.
As I sit here and write this, Monzo is at a

defining moment in its journey. We’re ready to
take the next step up and it’s exciting, but also
challenging. We have some hugely powerful
ingredients to work with, including a brand that TS Anil
our customers love, industry-leading product and CEO
design, and award-winning customer support. 29 July 2020
Our statement
on COVID-19
We have plans in place to reduce the risks We’ve gained assurance over the resilience
of our key suppliers, and how they have
At the end of our 2020 financial year (FY2020), managed the transition to remote working. We’ll
we were only just starting to understand the continue to actively monitor and manage these
impact COVID-19 would have on the world. We’ve relationships, and don’t expect there to be any
set out the key risks to our customers, colleagues significant issues.
and business, and how we plan to reduce them.
We have a strong liquidity position

We’ll continue to operate as
usual for our customers Businesses also face the risk of not having
enough cash to operate, including needing to
Many businesses face risks to their operations pay colleagues and suppliers on time. This is an
as a result of lockdown measures. The advantage especially big risk for banks because we hold
of being an app-based business is that our deposits from customers who may need them at
customers can continue to use the app without any time.
interruption. Most of our colleagues work
remotely either full-time, part-time or at least Our business is highly liquid. We hold enough
once a fortnight. The move to fully remote High Quality Liquid Assets (HQLA) to cover all our
working has been a smooth transition for most of customers’ deposits, with the vast majority being
us. Our work is mostly done in the cloud, so we’re held on overnight deposit in central banks. This
well prepared to serve customers as usual. means that we’re easily able to cover the day-to-
day needs of our customers and our business.
The Financial Conduct Authority (FCA)
announced new guidance for UK banks to
help support customers financially affected by
COVID-19. As part of this guidance, we’ve capped
interest charges and given up to a £500 interest-
free buffer for customers with existing arranged
overdrafts who use Monzo as their main account.
We’re also allowing loan customers to request
a 3 month payment break. We’ve activated 811
payment holidays so far in FY2021.
We’re working hard to avoid further redundancies We hoped that the furlough scheme and
salary sacrifices would be enough to avoid
We’re very aware that, if we want to continue redundancies. However, we expect the economic
with our mission, we have to become a impact of COVID-19 to be greater and to last
sustainable business and that means having the longer than the benefits of the furlough scheme
right number of colleagues to meet the needs of and salary sacrifices. After exhausting all of our
our customers. During the year, we looked at how other options to avoid job losses, we have sadly
we can provide the best overnight support, for had to announce redundancies in the UK, in
customers who need it, at a cost we can afford. addition to the closure of our Vegas office. We’re
We decided that we could only do this with our doing as much as we can to support all of our
staff in the UK and we’ve therefore closed our colleagues who have been impacted, including
Customer Operations office in Las Vegas. helping them to prepare for interviews and
offering generous packages.
The disruption caused by COVID-19 including
social distancing, travel restrictions and other
measures, have also changed our customers’ We’re adapting our business model and strategy
needs. Our existing customers are making fewer
transactions, fewer customers are joining us and The pandemic and the response of governments
lower interest rates, have all reduced our income. and central banks, along with the impact of social
distancing and restrictions on international
All of our senior management team and Board, travel, create a significant risk to our revenue
and many others across our business, have streams. Both overseas and UK spending has
volunteered to take pay cuts to minimise the decreased significantly, reducing our fee income
financial impact on our business and keep as while restrictions remain in place. The Bank of
many of our colleagues as possible. We also England also dropped interest rates from 0.75%
made use of the UK Coronavirus Job Retention to 0.10%, reducing the amount we earn on our
Scheme, furloughing colleagues where possible, cash deposits.
to help us retain as many colleagues for as long
as we could. We’ve made the difficult decision to delay some
of our product launches, as we didn’t feel they
were the right products for our customers at
this time. These measures have resulted, and
will continue to result, in a reduction to both our
variable revenues and costs.
We continue to look for ways to reduce our Our going concern assessment
costs to meet our customers’ needs and to run is more challenging
our business. We’re applying ways to be more
effective with what we have, increasing revenues COVID-19 is testing the sustainability and
and reducing costs in ways which are fair to our resilience of businesses in all industries, making
customers and minimise waste. going concern assessments more demanding
and judgemental. We’re no different, and are
The economic uncertainty surrounding COVID-19 exposed to the risk that revenues are significantly
increases the risk that customers default on lower for a period of time. For a growing business,
loans and overdrafts. We’re holding more money it also makes the fundraising environment more
aside, to cover the higher expected credit challenging. These indicate that the ability of the
losses on our loans and overdrafts, in case our Group to continue as a going concern is subject
customers can’t repay us. to material uncertainties.
But, we have a highly liquid balance sheet,

Our Board is closely monitoring the great products and customers, a focused team
impact on our stakeholders and supportive investors. We’re confident that
although we’ve had to make, and will continue
A Coronavirus Response Team made up to make, difficult decisions, such as announcing
of representatives from key areas across redundancies, we’ll come out stronger and
the business meet several times a week to deliver fantastic products and services to our
discuss new information, review ongoing customers. You can find more details and related
activity and assess the effectiveness of our uncertainties in the Directors’ report on page 71.
response. In addition to the Response team, the
Executive Committee met on a weekly basis to
discuss any developments and consider any
strategic responses.
Our Board also held regular meetings to review

and discuss the impact of COVID-19 on all our
key stakeholders and agree any actions needed
to mitigate and reduce risks on the business,
while also making sure the business remains
sustainable in the long-term.
Our business model

and strategy
Here’s what we’re focusing on for the financial We want our customers to get
year ending 28 February 2021 (FY2021). the most from Monzo
We want to encourage more customers to use us

We’ll adapt to the challenges as their main bank account. In FY2021, we’ll focus
of the global pandemic on giving enhanced features and an all round
better user experience to people who have their
Although the outlook for FY2021 remains main source of income paid into Monzo.
uncertain, we’ve developed a business plan
which accounts for the expected impact to our The launch of our premium products will also
key revenue streams while also giving us enough be a key focus for FY2021. We’ve listened
flexibility to absorb unforeseen impacts. to customer feedback and learned we must
now launch more finished products from the
start as opposed to our previous launch and
We’ll continue to grow, in a controlled way iterate philosophy. Despite initial launch delays
because of COVID-19, we launched Monzo Plus
In FY2020 we welcomed over 2 million new in July 2020. We plan to roll out another market
Monzo customers. We’re planning to welcome leading premium banking product in FY2021.
at least another 1 million customers while These products will help people get more from
continuing to grow safely and in control. their Monzo accounts, both at home and when
they travel.
We’re bringing Monzo to businesses We’ll continue our gradual and

steady growth in the USA
In FY2020, we launched a beta Monzo Business
product to a few thousand businesses. We spent Independently of our UK Customer Operations
the year building an account that’s as seamless closing in Vegas, we’re looking forward to the
as our personal account. So far in FY2021, we’ve opportunity to roll out our beta product to more
rolled out two tiers of account so businesses US customers in a controlled manner, from the
can choose the one that best meets their needs. new US head office in San Francisco. We’ll
We’ve also designed robust tools and processes continue to get feedback from our early users
to help us safely assess and onboard new to learn and iterate on the product. We’ve now
business customers. We’ll use these tools over formally filed for a US banking charter and we
the coming year so we can scale in a controlled hope to secure our provisional license in FY2021.
way, at low cost. A US banking charter is another step in our US
development, preparing us to serve the needs
of customers in the US, which we are largely set
We’ll continue our fair and flexible up to develop independently of our resources in
approach to lending the UK.
Our focus has always been on building fair and

flexible lending products that help customers
stay in control while borrowing. We’ve restricted
access to borrowing as we strengthen our control
environment and our capital, in response to our
high rate of growth. We’ll continue to build fair
and flexible lending products which balance the
needs of our customers with our own internal
risk, capital and liquidity control parameters.
A review of
our performance
Key performance indicators
2.3m new customer £47.5m revenue £930.7m customer

increase increase deposits increase
FY 2019 FY 2020 FY 2019 FY 2020 FY 2019 FY 2020

1.6m 3.9m £19.7m £67.2m £461.8m £1,392.5m
£124.7m gross -34% Common Equity -5 Net Promoter Score

lending increase Tier 1 (CET1) Ratio (NPS) decrease
FY 2019 FY 2020 FY 2019 FY 2020 FY 2019 FY 2020

£19.2m £143.9m 104% 70% +80 +75
Certain capital ratios, buffers and operational risk

weighted asset figures as at 28 February 2019 have
been updated to reflect Monzo’s three-year average
revenue calculation and replace those included in
last year’s report. The updated unaudited CET1 ratio
supersedes the unaudited figure included within the
Annual Report as at 28 February 2019.
Our business review: Our savings marketplace now has five providers
for customers to pick from with competitive
our non-financial performance interest rates, helping customers achieve their
savings goals. We’ve also reduced the minimum
deposit for Savings Pots, from £500 to £10, to
Even more customers recommend us
make it easier for customers to start saving and
earn interest.
We accelerated our growth, increasing from 1.6m
to 3.9m customers, with the majority coming
Proportionally, more people are switching their
from word-of-mouth referrals and our first TV ad
current account to Monzo, compared to those
campaign. We continued to satisfy customers,
switching away, than any other bank in the UK.
becoming the UK’s Most Recommended Brand
The Current Account Switch Service (CASS)
according to YouGov and maintaining a high Net
recently showed that 18 customers switch to
Promoter Score (NPS) of +75 (FY2019: +80).
Monzo for every 1 customer that switches away,
making Monzo the top bank of the table by most
recent results.
We provide award-winning service
Our Customer Operations team won a host of

We have five core principles for
awards highlighting the great work they do to
helping customers borrow
help our customers. A great example of this is
Natalie, from our Vulnerable Customers team, who
We’re lending in a responsible, transparent, clear,
won the Which? Consumer Champion award for
fair and compassionate way, by addressing the
our gambling block feature.
problems customers typically face when they
borrow, like hidden fees and unclear terms.
New features make Monzo an
In FY2020 we continued to roll out our lending
even better main account
products, offering increased limits for loans and
overdrafts. We also increased the number of
Our new features are helping Monzo customers
people who could take out loans and overdrafts
manage their money. Helping our customers get
by improving our decisioning and affordability
their salary a day early, automatically setting
models. This means we can build a more
money aside to pay bills using Bill Pots1, and
complete picture of each customer and whether
using Salary Sorter to help customers manage
a loan would be affordable for them.
their money.
Customers can now also build a more complete
credit history by banking with us, as we began
reporting to a second Credit Reference Agency,
Experian, in addition to TransUnion.
1 Bill Pots let you pay by Direct Debit and standing orders directly
from one of your Pots, instead of from your main account balance.
At the moment you can’t pay subscriptions from Bills Pots.
We’re focused on growing Monzo safely We launched to a small number of customers

in the USA and hired our US CEO
Our team grew from 713 to 1,495 by February
2020, allowing us to continue to safely build We launched a prepaid account in the US in
a bank that scales to meet the needs of our partnership with Sutton Bank of Ohio. Our early
growing number of customers. We’ve also added customers are using the app to manage and
more skilled and experienced people to our control their money, spending using our hot coral
management team, providing the leadership we debit card and shaping the future of Monzo in
need to stay in control as we grow. the US.
We’re building technology in-house to reduce By listening to customers we’ve launched Pots,
our reliance on third parties. This year we built bill splitting, contactless payments and more.
our own Faster Payments Service (FPS) Gateway, We’ve also laid out our plans in a public product
reducing the risk of downtime when customers roadmap so we can continue to get feedback on
transfer money in the UK. the features customers want.
In February 2020, TS Anil joined us to lead our US

We’re investing in our controls business, bringing with him a wealth of financial
services experience including retail banking,
As we become a larger and more complex payments and credit cards. In May 2020, TS was
business, we need to continue investing in our also appointed CEO for the UK business, when
core controls in line with the expectations of Tom took up his new role as President.
our Board and regulatory requirements. So we’re
continuing to develop our risk appetite and
control framework, and ensuring as we grow, our
operational resilience also continues to improve.
We’re building the financial control Awards

centre for businesses
Best Bank Overall
Finder Banking Customer
We launched an account for sole traders and
Satisfaction Awards 2019
limited companies with a quick and easy signup
process, so they can manage their finances on Number 1 in the customer services poll
their phone. Money Savings Expert 2020
Gold – Large Contact Centre of the Year
Businesses get the best of Monzo, plus features
UK Contact Centre Forum
built especially for their business, including
integrations with popular accounting software Bronze – Best Customer Experience
helping them to centralise control of their UK Contact Centre Forum
finances, Tax Pots for automatically setting
1st Place in Customer Experience
money aside for tax, instant notifications, team
Fairer Finance
access, and a web app to manage their finances
on a bigger screen. Number 1 most sought-after
startup in the UK
LinkedIn Top Startups 2019 and 2018
We’re sticking to our community roots
Best Banking App
British Banking Awards 2020
We’re learning from feedback, refining our
approach and trying to create a bank that UK most recommended brand
customers would be proud to call their own. Our YouGov 2019
Monzo Investival and Future of Monzo events in
Consumer Champion Award
FY2020 brought more of our community together
Which? 2019
than ever before. And we continued working
towards financial inclusion with our No Barriers to
Banking campaign, aiming to help over a million
adults in Britain who don’t have access to a
bank account.
Our financial review
Profit and loss – our income

and expenses for the year
Group
Year ended Year ended Year ended
29 February 2020 28 February 2019 28 February 2018
£’000 £’000 £’000
Net interest income 24,429 4,918 150
Net fee and commission income 29,404 6,567 1,367
Other operating income 2,079 1,553 309
Expected Credit Losses (20,254) (3,880) (12)
Net Operating Income 35,658 9,158 1,814
Personnel expenses (77,486) (25,654) (9,214)

Depreciation (3,210) (799) (250)
Other operating expenses (70,433) (33,421) (25,426)
Total Expenses (151,129) (59,874) (34,890)
Tax 1,655 3,552 2,530
Loss for the year (113,816) (47,164) (30,546)
Loss for the year after tax was £113.8m As our cash balances grew, the interest we
That’s an increase from £47.2m in FY2019. earned on our cash held at central banks
This reflects our increased investment both in increased to £6.2m, from £1.7m in FY2019. We
marketing and in building teams, products and also started earning interest, £0.4m (2019: £Nil),
systems. Investments that help us make money by investing in UK Government debt, helping to
work for our growing number of customers and diversify our sources of liquidity.
build Monzo into a sustainable business that’s
profitable and in control. We now have £0.6m of interest expense, mainly
from interest on the leases of our office buildings,
Net interest income was almost five times since adopting IFRS 16 Leases this financial year
higher at £24.4m (Note 15).
An increase from £4.9m in FY2019.
Net fee and commission income was over four
We’ve grown interest income from lending to times higher at £29.4m
£18.4m, from £3.2m in FY2019. This was mostly An increase from £6.6m in FY2019. The growth
driven by more customers using our overdrafts in has come from customers spending and saving
the year. We launched loans of up to £15,000 to more with Monzo.
eligible customers in August.
Customers spent a total of £10.9bn on their cards We continued to invest in our team, growing to
this year, compared with £3.6bn in 2019, with 1,495 from 713 people in FY2019. During the year
net interchange income growing to £29.4m, from we moved our US office from Los Angeles to San
£6.5m in FY2019. The increase came from having Francisco to get better access to the talent we
more customers who, on average, spend more need. However we made the difficult decisions
through Monzo. in March 2020 to close the Las Vegas office and
in June 2020 we put a number of roles at risk of
Net banking services expense increased to redundancy in the UK.
£1.4m, from £0.05m in FY2019. Income increased
as customers paid cash into their accounts Share-based payments have also increased
via PayPoint more regularly and increased the to £14.4m, from £2.5m in FY2019, as the team
amount of cash they withdrew outside of the UK. grows. They help the team share in our long-
But that was more than offset by the cost to us of term success.
customers withdrawing cash, both in and outside
the UK. We’re more efficient with our operating costs
Other operating expenses increased to £70.4m
Partnership commission increased to £1.4m, from £33.4m in FY2019.
from £0.1m in FY2019. More customers used
Monzo and our partners to switch to cheaper Our cost efficiency continues to improve as we
and greener energy providers, send money build processes that grow with the business.
abroad and earn interest on their savings. The average number of customers using Monzo
Competitive savings rates attracted customers in the year grew to 2.7m, from 1.0m in FY2019.
to hold £802.0m (up from £165.5m in FY2019) But our variable customer costs, current account
of their savings with our partners through the operating costs and technology costs only
savings marketplace. increased to £35.7m, from £18.6m in FY2019.
This means that on average variable costs per
Our Expected Credit Losses (ECL) charge customer fell from £18.60 to £13.22.
was £20.3m
Compared to £3.9m in FY2019. This amount We invested £16.8m in marketing this year, up
represents the amount we forecast to lose from £2.7m in FY2019. We launched our first TV
on our lending business for customers that adverts and ran our ‘Give £5 Get £5’ campaign,
can’t repay us. The ECL increased in FY2020 helping us to add 2.3m new customers at an
broadly reflecting the higher amount customers average acquisition cost of £7.30 per new
have borrowed in the year and also due to customer. New customers are just as engaged as
the emerging credit risk associated with the our early adopters, with about 60% of customers
COVID-19 pandemic. We booked an additional using their account on a weekly basis.
£4.1m of ECL in February 2020 to reflect this risk.
Other operating expenses increased to £17.9m
We’re investing in our team from £12.1m. These mainly relate to admin,
Personnel expenses increased to £77.5m, from office and professional service fees. These
£25.7m in FY2019. have grown as we become a larger and more
complex organisation.
Balance sheet – our assets

and liabilities at the end of the year
Year ended Year ended Year ended

29 February 2020 28 February 2019 28 February 2018
Balance Sheet £’000 £’000 £’000
Cash and balances at bank 1,373,722 549,847 96,943
Loans and advances to customers 123,913 16,054 160
Other assets 223,773 48,489 42,717
Total assets 1,721,408 614,390 139,820
Customer deposits 1,392,517 461,821 71,276

Other liabilities 199,887 36,899 12,365
Total liabilities 1,592,404 498,720 83,641
Equity 129,004 115,670 56,179
Total liabilities and equity 1,721,408 614,390 139,820
High quality liquid assets make up most of our We’re lending more to customers and improving
balance sheet our processes
Our total assets grew substantially to £1,721.4m, We increased the gross amount (excluding
from £614.4m in FY2019. This was mainly due to ECL) we lent to our customers to £143.9m,
cash increasing to £1,373.7m, from £549.8m in from £19.2m in FY2019. Improvements in our
2019, as our customers deposited more money decisioning and affordability models have
with us. Our cash is mostly held overnight allowed us to offer loans and overdrafts to
with central banks, or invested in short-term more customers. This also meant, for eligible
government bonds. This is so we can easily cover customers, we could increase our £1,000 limits to
the day-to-day needs of our customers and our £15,000 on loans, and £3,000 on overdrafts.
business. We’ll continue to explore sustainable
ways to invest in safe, liquid assets that maximise
the interest we earn.
We’re developing our Treasury function Equity – our shareholders’ interest in the
We started varying our sources of liquidity and business
building out the capabilities of our Treasury
function by investing in UK Government debt. Our capital ratios are in excess of minimum
We’ll continue to build our Treasury portfolio capital requirements
in FY2021. Our Common Equity Tier 1 (CET1) ratio, a core
measure of a bank’s financial strength from a
We moved to long-term homes in London regulator’s point of view, reduced to 70%, from
and Cardiff 104%1 in 2019. We calculate the ratio by dividing
We signed new leases in London and Cardiff, our equity that qualifies as regulatory capital,
confirming our commitment to the two cities by our “Risk Weighted Assets”, a regulatory
and giving our UK-based teams more permanent measure of our exposure to market, credit and
homes. These leases appear on our balance operational risk. The decrease in CET1 from last
sheet for the first time within property, plant and year reflects the increase in risk weighted assets
equipment as we adopted a new accounting from customers borrowing more money from us
standard for leases (IFRS 16). this year. The ratio remains well in excess of our
current minimum capital requirements.
Customers are depositing more of their money
with us We raised an additional £113m of equity
Customer deposits grew to £1,392.5m, from This additional funding brings our total equity
£461.8m in FY2019. We added 2.3m more funding to £313m, letting us continue investing
customers and, on average, our customers kept in building a secure and sustainable bank. On 15
more of their money with us. This also reflects June 2020 we secured an additional £58m.
the higher number of customers using us as their
main account.
1 Certain capital ratios, buffers and operational risk weighted

asset figures as at 28 February 2019 have been updated to reflect
Monzo’s three-year average revenue calculation and replace those
included in last year’s report. The updated unaudited CET1 ratio
supersedes the unaudited figure included within the Annual Report
as at 28 February 2019.
Risk management
at Monzo
Over the past five years we’ve successfully Our Enterprise Risk Management Framework
grown to a bank with over 4 million customers (ERMF) reflects our continuing growth and our
and are committed to making money work for commitment to keeping Monzo safe. We’ve
everyone. A key part of this journey in FY2021 will further developed our approach to stress testing
be continuing to develop our risk management which is being embedded in our Internal Capital
approach, capabilities and culture to make sure Adequacy Assessment Process (ICAAP), Internal
that we have strong controls and can safely Liquidity Adequacy Assessment Process (ILAAP)
manage further growth. In FY2020 we’ve invested and operational resilience process.
heavily in the foundation blocks of an effective
risk management framework. Our primary focus Our approach to risk management is underpinned
in FY2021 is to build on those foundations to by five key elements, explained on the
meet the expectations of our Customers, Board following pages:
and Regulators.
• Risk strategy and culture.
• Enterprise Risk Management Framework.
Our approach to risk • Risk appetite.
management • Risk governance and policies.
• Stress testing and scenario modelling.
In FY2020, our approach to risk management
continued to improve across the business
and we’ve invested, in particular in credit risk,
Risk strategy and culture
financial risk, financial crime, technology and
information security. We also appointed a new
The risk strategy sets out our risk management
Chief Risk Officer, Lisa Nowell, in November
objectives that support the achievement of our
2019 and recruited an additional 20 people to
strategic goals. The risk strategy objectives
strengthen our risk management skills.
are to:
• increase our understanding of risk and control
across the business;
• embed risk and control in day-to-day thinking
and decision making for all colleagues;
• identify material and significant risks from the Enterprise Risk Management Framework
day-to-day operations and make appropriate
plans to mitigate the risk; Our business and risk strategy is translated
into the ERMF which makes sure that we have
• proactively advise and challenge our strategic
consistent risk standards and processes across
planning; and
the business. The ERMF describes the activities,
• enhance the internal risk and control techniques and tools we use to identify, measure,
governance structure for effective delivery of control, manage, monitor, report and challenge
risk management. risk. It gives an integrated, comprehensive and
consistent structure which all our colleagues can
A sound risk culture supports appropriate risk understand easily. The ERMF also drives clear
awareness, behaviours and judgments about accountability, responsibility and engagement at
risk-taking. At Monzo, we have a suite of values, appropriate levels in the organisation.
one of which is focused on making sure we’re
operating safely and in control for our customers,
colleagues and wider stakeholders. This value
is critical to the future success of our business.
We have a detailed and robust Risk Development
Plan to drive the delivery and embedding of our
risk strategy over 18 months. We are 9 months 1. Enterprise Risk Management
into our journey and will continue through FY2021 Framework (ERMF)
to make sure all aspects of our strategy are Monzo’s Business and Risk Strategy is translated
delivered and embedded throughout Monzo. into the ERMF which forms the apex of a hierarchical
structure of Risk Frameworks, Risk policies and more
detailed Processes and Procedures which together
describe Monzo’s Risk Management arrangements.
The ERMF outlines the key Enterprise Wide Risk

Governance and Control processes and systems.
2. Risk Class Frameworks and Policies The ERMF is supported by the Risk Appetite
Framework (RAF), Risk Appetite Statement (RAS) and
Individual Risk Class Frameworks and Policies for informs the Individual Capital Adequacy Assessment
each of Monzo’s Principal risks: Credit Risk, Financial Process (ICAAP)
Risk, Strategic Risk, Operational Risk, Compliance
Risk and Customer Outcome & Conduct Risk.
Expands on the principles and standards defined in

the ERMF and sets out risk specific processes and
methodologies to manage the risk class.
3. Processes and Procedures

More detailed process and procedures which outline
the steps and activities required to implement
the processes and methodologies set out in the
individual Risk Class Frameworks and Policies.
This framework is underpinned by risk-specific The ERMF covers all of the different types of risk
frameworks and procedures for key risk types. that Monzo faces as a business. These are, at the
The Board Risk Committee (BRC) oversees and top level: credit risk, financial risk, strategic risk,
reviews the design and effectiveness of this operational risk, compliance risk and customer
framework. Responsibility for risk management outcome & conduct risk. We’ve now established
sits at all levels across Monzo – from the Board the foundation blocks of the framework including
and Executive Committee down to the individual individual risk policies, enhanced risk reporting
teams in the First Line of Defence. and risk appetite. As part of our Risk Development
Plan we have 9 more months of activities to
mature and embed these foundations.
1 2 3 4 5 6
Credit Financial Strategic Operational Compliance Customer Outcome
Risk Risk Risk Risk Risk & Conduct Risk
1.1 Default Risk 2.1 Capital 3.1 Business Model 4.1 Model Risk 5.1 Regulatory Risk 6.1 Product Design
Adequacy Risk
1.2 Retail 3.2 Regulatory 4.2 Business Change 6.2 Customer Servicing and
Concentration Risk 2.2 Liquidity Risk Environment Management Treating Customers Fairly
1.3 Wholesale 2.3 Intraday 3.3 Completion Risk 4.3 Financial Crime 6.3 Complaint Handling
Issuer Risk Liquidity Risk
3.4 Monzo Brand 4.4 Internal Fraud 6.4 Financial Diff. & Vulnerability
1.4 Wholesale 2.4 Funding Risk
4.5 Cyber and
Credit Risk
2.5 Non-Traded Data Risk
1.5 Wholesale Market Risk
4.6 Technology Risk
Concentration Risk
4.7 Financial
1.6 Wholesale
Management
Settlement Risk
4.8 Operational
Resilience
4.9 People and
Facilities
4.10 Supplier &
Outsourcing
4.11 Key Business
Processes
4.12 Governance
4.13 Legal Risk
Risk type Definition

Credit Risk The risk of losses that arise from our
customers and counterparties not paying us
back for loans we extend to them contained
within the terms of the arrangement.
Financial Risk The risks to the adequacy of our financial
position, including solvency risks and our ability
to meet our payment obligations. A variety of
factors can result in financial risks, such as our
failure to achieve or manage financial objectives;
the loss of liquidity and funding from a run-off in
the retail book; exposures to our operations or to
external market factors; or the unwillingness of
investors to inject further capital. Financial risks
are not necessarily independent of each other.
Strategic Risk The risk that we don’t successfully execute
on our business plan, or our business model
is not sustainable over the long-term.
Operational Risk The risk of loss resulting from inadequate
or failed internal processes and
systems, financial crime, people risks
and risks from external events.
Compliance Risk The risk of incorrect interpretation,
implementation, and compliance with
regulatory requirements applicable to Monzo.
Customer Outcome & Conduct Risk The risk that any action, or inaction, of a
Monzo colleague or individual associated
with Monzo that leads to customer
detriment, or has an adverse impact on
market stability or effective competition.
Our risk activities are subject to detailed and

comprehensive governance arrangements which
set out how risk-based authority is delegated
from the Board to Executive Management
and the various risk management committees
and individuals. There’s more detail on risk
governance and oversight on page 34.
Risk appetite Risk governance and policies
Risk appetite sets the types and level of Risk governance describes the way the Board
risks we’re willing to accept in achieving our allocates and delegates accountability and
objectives and successfully delivering on our responsibility for risk management across
business plan. Risk appetite is expressed through the business. We’ve outlined oversight of the
a series of qualitative statements and supporting individual risk types below.
quantitative measures aligned to our key risk
types and sub risk types.The Board agrees These committees and individuals are
and reviews these on a regular basis. The risk accountable for making sure that the day-to-
appetite statements give an aggregated measure day risks are appropriately managed within risk
of performance against risk appetite. As well as appetite and in line with the requirements of the
reporting benefits, they give a framework to make ERMF. The Senior Managers and Certification
strategic and operational management decisions. Regime reinforces the risk governance
and culture.
The risk appetite statements evolve over time to
reflect and support our business objectives and We’ve set out a summary of the Board and
our risk outlook. Over the last 6 months we’ve set Management Committee structure in the
an enhanced suite of qualitative statements and Corporate Governance Report starting on page
quantitative measures for each primary risk type, 45. Over the last 6 months we’ve established an
with risk limits based on our risk capacity and enhanced risk governance structure to include
desired appetite. separate committees providing oversight of
Operational Risk, Compliance Risk and Customer
Our Board Risk Committee and our Board will Outcome & Conduct Risk. Throughout FY2021
review our risk appetite statements on a 6 the Board, Board Risk Committee and CRO
monthly basis during FY2021. The reviews will will increase their scrutiny and oversight of
make sure the new approach adequately reflects the governance process to make sure risk
our risk appetite and the measures are used management is embedded throughout Monzo.
as an integral part of management’s decision This will help us make sure we meet the ‘use’ test
making. Our Enterprise Risk Management in both strategic and business decision making.
Committee and Board Risk Committee monitors
monthly reports on the status of each metric.
Executive Management and the Board decide
what appropriate action to take if there’s a
threshold breach, dependent on the scenario at
the time. The primary risk appetite statements
describe risk appetite against our six primary
risks (as outlined above) and are supported by
further detailed statements and metrics.
Risk type Management Oversight Assurance

(First Line of Defence) (Second Line of Defence) (Third Line of Defence)
Credit Risk Chief Credit Officer
Credit Risk Committee
(CCO)
Financial Risk Chief Financial Officer Assets and Liabilities
(CFO) Committee
Strategic Risk Executive
Enterprise Risk
management and the
Management
Chief Executive Officer
Committee
(CEO)
Operational Risk All business functions
and the Chief
Internal Audit function
Technology Officer Operational Risk
(CTO) and Chief Committee
Operating Officer
(COO)
Compliance Risk All business functions
and the Chief Risk
Officer (CRO) Conduct and
Compliance Risk
Customer Outcome All business functions
Committee
& Conduct Risk and the Chief
Operating Officer
(COO)
We use a Three Lines of Defence Model to define • developing and executing the overall business
the governance for risk management across strategy in line with our risk strategy, vision and
the Bank. This model makes sure there is a principles;
clear delineation of responsibilities between
• developing a risk aware culture across Monzo;
the ownership and management of risk (First
Line), oversight and challenge (Second Line) • monitoring, reporting and escalating breaches
and independent validation and assurance of risk appetite limits;
(Third Line).
• adhering to the principles and standards
set out in the ERMF and processes and
First Line of Defence
methodologies of individual risk class
The First Line of Defence (otherwise known as
frameworks; and
the business) is responsible for day-to-day risk
management and integrating risk management • timely escalation and reporting of control
into business approaches and procedures. failures and breaches of policy or risk appetite.
Specifically, the First Line is responsible for:
Second Line of Defence • regularly reporting our risk profile against the
Risk and Compliance give independent stated risk appetite;
oversight, monitoring and challenge to the First
• reviewing and challenging all risk matters from
Line and make sure that we adopt effective
the First Line for the attention of the ERMC; and
risk management mechanisms and controls.
The organisation chart for the function is • identifying new laws, regulations, and
shown below. standards, and advising the First Line on how to
comply with such rules.
Specifically, the Second Line is responsible for:
The Second Line of defence is independent from
• developing the strategy and vision of Risk and
senior management and operational functions.
Compliance;
It has enough authority, resources and access to
• cascading the risk strategy and vision across the Board, so it can raise concerns and tell the
Monzo to support a risk aware culture; Board where specific risk developments affect or
may affect us. It’s headed by the CRO and reports
• designing and maintaining the ERMF, including
to the Chair of the Board Risk Committee.
the governance and roles and responsibilities
to support the execution of the risk strategy
and vision;
Board Risk Chief

Committee Chair Executive
Chief Risk
Officer
Risk Change Operational Prudential Conduct and Regulatory Financial

Credit Risk
& Governance Risk Risk Compliance Affairs Crime
Third Line of Defence Stress testing and scenario modelling

The role of the Third Line is to understand our key
risks, examine and evaluate the adequacy and Stress testing assesses where failure might
effectiveness of risk management and internal happen under abnormal conditions or as a
control. This gives reasonable assurance to our consequence of extreme, but plausible, events.
Board, Audit Committee, senior management and Stress testing also determines strategies for
other interested parties (including the regulators management action to eliminate or mitigate the
and external auditor) that we’re appropriately and impact on us if stressed conditions occur.
effectively managing our key risks.
We use these tools to regularly assess our
Internal audit will act in line with best practice, business operations and financial position in
principles and recognised standards. This stressed conditions. This stress testing feeds
includes complying at all times with the into the annual ICAAP and ILAAP.
Institute of Internal Auditors (IIA) code of
professional conduct and code of ethics and
the IIA’s guidance on effective internal audit in Operational resilience
financial services.
Operational risk scenario analysis is also a key
Policy Management framework input to our operational resilience approach and
The ERMF and risk appetite approach preparation for crisis management procedures.
are supported by a suite of risk specific This year we’ve invested substantially to assess
frameworks and through the application of the and improve our operational resilience. As we’ve
Policy Management Framework. The Policy significantly grown in size, we need to be sure
Management Framework sets out how we that we can continuously provide our services to
develop, manage and apply policies and the an ever-growing customer base.
minimum requirements of adoption expected
across Monzo. They’re supported by procedures We’ve also become a more complex business
and guidelines that explain how business and a significantly important UK Retail bank. We’ll
areas comply with the policies’ requirements. continue our investment in our core controls
This is governed by our Policy Management to meet the expectations of our Board and our
Framework that the Board approves. Members regulatory requirements. We’re continuing to
of the Executive team own policies. The Board develop our risk appetite and control framework,
reviews and approves them, or delegates them to and making sure that as we grow, our operational
another non-executive or Executive Committee resilience also continues to improve. We manage
for approval. Over the last 6 months we’ve operational resilience and operational risk
introduced a suite of new policies to embed using the key aspects of our ERMF to identify
the ERMF including credit risk, financial risk, and control our risks. We set our risk appetite in
operational risk, model risk and conduct risk. line with our strategy and control and monitor
We’ve made significant progress in putting in against this using our identified operational risk
place the foundation blocks, but we need to do governance. Our focus in FY2020 has been on
more work to make sure that we meet the high making sure that all key business services for
bar demanded by both our Board and the UK customers have robust contingency plans and
Retail Banking regulatory environment as we tests in place.
continue to grow.
Our current and emerging risks Key risk themes include: business model and
strategic risk; capital, liquidity and credit risk;
We’ve listed our top current and emerging risks cyber, financial crime and operational resiliency
in the table below, with key mitigating actions. risk; pandemic risk and regulatory risk.
We have a consistent approach to identifying
and measuring risk across all risk categories,
as outlined in the ERMF. The risks below were
identified using a ‘bottom-up’ risk assessment
approach and ‘top-down’ strategic assessment
completed by the Executive team at the
Enterprise Risk Management Committee (ERMC).
Top risks How we mitigate the risk Change in risk level

Current risks
Business model and strategy • Regular strategic planning The UK economy has been
with executives and their resilient during FY2020. But,
We’re a relatively young bank
teams from across Monzo the outbreak of COVID-19
compared to our competitors,
to align on strategy, strategy has been labelled a global
so we’re still developing and
execution and capital pandemic by the World Health
refining our business model
management. Organization. As the economic
and strategy. Similar to any
• Hiring experienced people impacts of COVID-19 become
other young business, there’s
with UK retail banking more widespread this will
a risk that as we continue
experience to join the put our business model
to grow, our business model
Executive team and the under increasing stress.
and strategy don’t deliver
Board to support with
the expected financial and
strategy development and
non-financial benefits to our
execution.
customers, shareholders
• Continuing to focus product
and wider stakeholders.
teams on the high-value
Which results in a loss of
product propositions that are
consumer confidence and
best aligned to our business
reputational damage.
strategy. We monitor this
consistently through the
weekly product governance
cycle to make sure products
and features deliver both
financial and customer value.

Capital and liquidity risk • Carrying out regular capital We have a core group of
and liquidity adequacy supportive investors who
Given the immaturity of our
assessments to make sure see the long-term value of
business model and the fact
we maintain adequate capital the business. But, as the
that we’re not yet profitable,
and liquidity ratios at all impacts of COVID-19 hit the
there’s a risk we won’t be
times. Escalating these to world economy, it’s possible
able to maintain sufficient
our Board and Assets and that the flow of international
capital and liquidity buffers to
Liabilities Committee (ALCO). capital will decrease.
meet regulatory requirements.
• Identifying all of our financial
We acknowledge that this
risks through the internal
is a top risk for us, and have
Risk Control Self Assessment
appropriate mitigating actions
(RCSA process) and regularly
in place that we monitor at
monitoring these using
the most senior levels.
agreed financial metrics and
risk thresholds.
• Running regular stress test
scenarios to understand
where our weaknesses
lie in times of stress and
developing plans that can
help us recover from these
stresses.
• Increasing our capital runway
by continuing to close
funding rounds. We closed
our last funding round for
£58m on 15 June 2020 and
we intend to raise Tier 2
funding in FY2021.
Credit model risk We’re building out a robust During FY2020, our unsecured
credit risk management lending portfolio markedly
We offer both overdrafts and
approach that includes increased, increasing the
loans to customers, with the
appropriate governance of inherent level of this risk.
latter introduced in mid-2019.
credit models at Monzo.
When we decide to scale our
We’re designing these in-
retail lending offering, either
house and getting external
to new customers or higher
specialist consultants to
lending amounts, we need
validate them. They’ll allow
to make sure that we align
us to grow in control by
our credit risk management
using automated modelling
approach with the scale of
in our business processes.
our lending activity and wider
changes to the economic
environment. Not doing this
will result in reputational
risk and financial losses.

Cyber and data risk • Maintaining a comprehensive The level of this risk
security maturity assessment continues to grow as there
Given the increase in volume
and implementation roadmap are increasingly sophisticated
and sophistication of cyber
for future improvements. external cyber threats.
attacks there’s a risk of
• We run penetration tests and
data loss from both external
simulated phishing attempts
and internal threats.
to check how effective our
controls are and identify any
weaknesses.
• We’ve built detection
capabilities to monitor and
alert us about system attacks.
We use incident management
procedures and playbooks to
respond to attacks.
• We train all of our colleagues
on data protection and the
General Data Protection
Regulation (GDPR).
Financial crime • Performing a review of, and As noted by the FCA1, COVID-19
evolving, our financial crime has created uncertainty
There’s a risk that criminals
control framework. across the financial sector
will use our products and
• Continuously improving our and an increase in criminal
services for financial crime.
financial crime policies and financial activity.
This is especially true as the UK
procedures.
enters an economic downturn
• Improving our in-house
that could see an increase
transaction monitoring
in the number of people
system to proactively identify
engaging in criminal activity.
risks before they materialise.
• External environment
scanning and responding to
new fraud typologies.
• We continue to work with
law enforcement and have
industry-leading fraud
detection systems in place.
1 https://www.fca.org.uk/firms/financial-crime/financial-crime-systems-controls-during-coronavirus-situation

Operational resilience Our important business As COVID-19 has impacted
services are the focus of the UK and the world our
As we’ve grown the impact
Enterprise Resilience at Monzo. operational resilience has been
of operational issues to our
We have processes in place tested with remote-working
key services has continued
to identify and assess risks to and is operating as planned.
to increase. This means
these services in order to allow
that we could experience
effective risk management.
platform outages and other
IT issues during times of Mitigating actions include:
stress which would result • developing and implementing
in us failing to deliver our policies and procedures
critical banking and support that cover people, systems,
services to our customers. data and security and how we
work with third parties;
We use a number of third
• following our robust incident
parties to support the
escalation framework;
delivery of our objectives.
• developing and running tests
The availability and resilience
on our business continuity
of our core customer facing
and disaster recovery plans;
systems play a key role in
• close management of our
supporting our reputation.
most critical suppliers; and
• hiring a Chief Operating
Officer to oversee our
approach to operational
resilience.
Change and people risk We understand the need to This is a newly identified
successfully manage change key risk for us. As we move
At any one time we’re
so we don’t overburden from a small startup to being
delivering multiple, high-
the business and impact a significantly important
priority projects. There’s a risk
customer service. We’ve spent UK Retail bank, our change
that the pace of change and
a significant amount of time management approach is
volume of work create delivery
identifying the high priority becoming more complex.
challenges and put significant
projects in Monzo and aligned
stress on our people.
actions and people to those
projects. We track delivery of
key strategic projects through
our governance, including
at the Executive Committee,
the ERMC and the Board.
Top risks How we mitigate the risk

Emerging Risks
COVID-19 and pandemic risk We’ve taken appropriate steps to reduce the
impact of disruption caused by COVID-19
COVID-19 is a new risk on a global
on both our business and our customers.
scale, dampening investor and business
confidence and causing disruption to our We’ve implemented our daily COVID-19 response
colleagues, suppliers and customers. In working group who meet to discuss key risks
the UK, it’s caused widespread disruption and mitigating actions. This group is made
and is impacting investment through: up of senior stakeholders from across Monzo
decreasing productivity, negatively impacting and we escalate the outputs of the meeting
employment levels and reducing consumer to the Executive team on a weekly basis.
spending, both at home and abroad.
The pandemic has had a minimal impact on
our operations and we have continued to
deliver for our customers, with the majority
of our colleagues working successfully from
home. We’re well set up as a business for
remote and distributed working and there
has been little impact to our customers.
If COVID-19 continues to cause widespread
disruption, we expect to see sustained
adverse impacts on income due to lower
transaction and lending volumes.
Competition The exact form of this risk remains unclear
as the market continues to evolve. But, we
We’re well placed in the UK retail banking
mitigate and manage this risk through:
market with a strong brand and a large
• carrying out competitor analysis ahead of any
customer base of now over 4 million customers.
product development to identify the gaps in
But, we recognise that we operate in a
the market and where we can differentiate
competitive marketplace, competing against
ourselves by building something unique;
both traditional banks and new ‘challenger’
• continuing to focus on our speed and quality
banks for retail and business customers.
of execution – two of our key strengths;
• broadening our product mix to keep existing
customers and attract new ones; and
• management and colleagues having expertise
and a deep understanding of customer needs
to deliver superior service.
Regulatory risk The regulatory environment continues to evolve
and change. We actively engage with regulators,
The scale and pace of regulatory change
industry bodies and advisors to take part in
is increasing, resulting in significant effort
consultation processes. We review regulatory
and investment from within the business.
publications to assess the implications for
the business and oversee the impact analysis
through our Compliance Advisory Team.
UK withdrawal from the EU
The UK left the EU on 31 January 2020. As we’re

mainly based in the UK, with little international
presence, we consider the key risk of Brexit
to be an economic downturn in the UK. For us,
that would mean less card spending, a possible
increase in the amount of loans which customers
do not repay and difficulty securing future
funding. As part of our business modelling and
recovery planning exercises, we’ve modelled
the impact that an economic downturn would
have around our revenue from interchange fees
and on our level of loan provisions under a range
of scenarios.
Climate change
We assess our environmental footprint as being

relatively low and so we don’t consider climate
change a key risk to the business. But we’ll
continue to review our activities, their impact and
the associated risks.
Governance
at Monzo
Our Board of directors This means that our Board gender balance is now
30% women – up from 25% in FY2019.
We built our Board to lead us effectively and
with an entrepreneurial spirit, with overall
responsibility for good risk management and Board meetings
internal control systems. Our Board sets our
standards and strategy, and keeps an eye on our Our Board meets approximately every six
culture, values, brand and reputation. It makes weeks to review performance, strategy, risk and
sure that we understand and meet our obligations governance and to oversee the work of the Board
to customers, colleagues, shareholders and all of committees. Every meeting has a tailored agenda
our other stakeholders. which the Chair, CEO and Company Secretary
agree in advance.
We have 10 directors on our Board In a typical meeting the Board discuss operating
and financial performance, risk, legal and
We consider six of our eight non-executive governance issues, and one or two detailed
directors (Gary Hoffman (see comment on reviews of areas of particular importance.
page 46), Tim Brooke, Amy Kirk, Fiona McBain,
Phillip Riese and Keith Woollard) to qualify as The Chairs of the Audit, Risk, Remuneration and
independent non-executives under the UK Nomination and Governance Committees also
Corporate Governance Code 2018 (“the Code”). update the Board at every meeting.
We also have two Investor Non-executive Key decisions our Board made in FY2020:
Directors, Eileen Burbidge and Miles Grimshaw,
• our strategy and 3-year business plan;
and two Executive Directors, TS Anil, our CEO1 and
Alwyn Jones, our CFO. • the Business Banking launch;
• our Series F fundraise;
New appointments to our Board • the start of our launch in the US, through
launching a prepaid debit card in partnership
This year we appointed Fiona McBain, who with Sutton Bank;
brings a wealth of board-level and management
• the launch of an ISA;
experience and Phillip Riese, who offers
extensive experience in banking and fintech. • our successful TV paid marketing
More recently TS Anil was appointed to the campaign; and
Board replacing Tom Blomfield following his
• the lease and fit-out of our new office
appointment as CEO.
Broadwalk House.
1 Pending PRA approval

The Board also considered important risks, such What’s on the agenda for next year?
as business continuity, implementation of strong
customer authentication, risk appetites and Next year the Board will continue building our
operational resilience. corporate structure to support the long-term
success of Monzo, paving the way to profitability,
evaluating funding options and improving
Board deep dive reviews in the last year our operational resilience. The Board will also
continue to oversee the implementation of the
During the year the Board also did deep dives into risk management and control tools developed
our strategy and product launches, our approach over the last year.
to lending, ICAAP, ILAAP1 and US legal risk.
How do Board activities relate

to the Executive teams?
Our Board delegates some of its authority to

four committees, explained in more detail below.
The day-to-day running of the business is
delegated to the CEO, supported by an Executive
Committee (ExCo). Reporting into the ExCo, we
have an Assets and Liability Committee (ALCO)
for balance sheet matters and an Enterprise Risk
Management Committee (ERMC) for risk issues.
This diagram shows how this works in practice.
Board
Audit Nominations Risk Remuneration

Committee Committee Committee Committee
Executive
Committee
Assets and Enterprise Risk

Liabilities Management
Committee Committee
Product Operational Conduct and Financial Crime

Credit Risk
Governance Risk Compliance Oversight
Committee
Committee Committee Risk Committee Committee
Collective Collective Risk

US Executive
management and Control
Committee
meetings meetings
Non-Executive
1 ICAAP – Internal Capital Adequacy Assessment Process Business Executive

ILAAP – Internal Liquidity Adequacy Assessment Process Risk and Control
Our governance journey • Between February 2020 and June 2020, Gary
Hoffman offered to help the Executive team by
Although we do not apply or adopt the overseeing our Legal, Operation and People
Corporate Governance Code 2018 (“Code”), teams. Our Company Secretary already reported
we do use it as the standard for measuring to him. Upon the appointment of TS Anil as
our corporate governance. In future we aim to CEO and Sujata Bhatia as COO, Gary no longer
comply with the Code in full, and we’re tracking provides Executive oversight of these areas.
our progress against the Code as part of our Gary wasn’t paid separately for these duties.
governance journey. We carefully reviewed each meeting agenda
for potential conflicts of interest and made
Here’s how we approach some of the key sure that Gary didn’t take part in decision
governance issues: making in these areas. We considered Gary as
independent for all other purposes.
Board succession and diversity
• Alongside Gary, the Board considers that Tim
This year the Board reviewed its makeup,
Brooke, Keith Woollard, Amy Kirk, Fiona McBain
diversity and succession plans, resulting in two
and Phillip Riese are non-executive directors
new non-executive directors. We also adopted a
and independent. As representatives of major
Board-level diversity policy and objectives. You
shareholders, we don’t class Eileen Burbidge
can find more information about the diversity of
and Miles Grimshaw as independent for Code
our Board, including our succession planning
purposes.
in our Nomination and Governance Committee
report below.
Time commitment
When making new appointments, the Board
Independence
always requires candidates to disclose other
• More than half of our Board, including the significant commitments and indicate the time
Chair, is made up of independent non- involved. Further external appointments need
executive directors and the makeup of all Board prior approval of the Board. You can find a list of
Committees complies with the Code. external directorships to Monzo on pages 7–10.
• The Board reviews the independence of its
Senior Independent Director
non-executive directors at least annually.
Our Senior Independent Director is Tim Brooke.
• The Board considered the Chair to be As set out in the Code, Tim led our non-
independent on appointment. Our aim is to executives in doing our Chair’s appraisal.
make sure that the Board has a majority of
independent non-executive directors who Attendance
objectively challenge management, and that The Directors’ attendance at Board meetings
there’s the right blend of skills and experience and Committees which they’re members of is set
on the Board. out below. The attendance at meetings includes
scheduled and additional meetings (including
• We try to make sure that the terms of service of
those called at short notice). Any absences
the Chair and non-executive directors continue
at meetings were in relation to the additional
to meet Code requirements.
meetings, which we called at shorter notice and
conflicted with a director’s commitment.
Board meeting attendance
Independent/ Meetings Meetings eligible

Executive/Investors attended to attend1
Chair
Gary Hoffman On appointment 15 15
Executive Directors
Tom Blomfield Executive 15 15
Alwyn Jones Executive 14 14
Non-Executive Directors
Tim Brooke Senior Independent Director 13 15
Eileen Burbidge Investor 15 15
Miles Grimshaw Investor 15 15
Amy Kirk Independent 15 15
Fiona McBain Independent 3 3
Phillip Riese Independent 5 7
Keith Woollard Independent 14 15
1 There were 8 scheduled Board meetings and 7 additional Board

meetings in this financial year.
Alwyn joined the Board on 9 April 2019, Phillip joined on 1 July 2019
and Fiona 1 January 2020.
Board Committee attendance
Committee Nomination and Remuneration Audit Board Risk

members Governance Committee Committee Committee
Committee
Meetings Meetings Meetings Meetings
attended/eligible attended/eligible attended/eligible attended/eligible
to attend to attend to attend to attend
Tim Brooke 3/3 7/8 7/7 10/10
Amy Kirk 3/3 8/8 7/7 10/10
Keith Woollard 3/3 8/8 7/7 10/10
Gary Hoffman 3/3 7/7 – –
Miles Grimshaw 3/3 – – –
Meetings between the Chair and independent You can find more detail on how we engage with
non-executives key stakeholder groups on page 51.
Before every scheduled Board meeting
the Chair meets privately with the Senior Values & culture
Independent Director and the independent non- The Board approved our six values and some
executive directors. Board members took the values training with
our colleagues.
Accountability and election
There is a clear separation of duties between Whistleblowing
the Chair and CEO roles, and all the Directors will Our whistleblowing policy, which lets colleagues
stand for annual re-election. raise concerns confidentially and/or anonymously
is routinely monitored by the Board, as are
Evaluation any reports.
After an external evaluation in 2018, our Company
Secretary organised an internal performance Board remuneration
evaluation of the Board and its Committees in No director is involved in setting their own
FY2020, in line with the Code. Evaluations give us remuneration. The Chair, investor directors
an opportunity to reflect on the effectiveness of and Executive Directors set the remuneration
our Board and Committees. of independent non-executive directors. The
Remuneration Committee sets remuneration of
The evaluation resulted in an action plan for the Chair and Executive Directors, and the Chair
the Board and its Committees, which was doesn’t attend any Remuneration Committee
implemented by the relevant Chair and Board meeting where they discuss his remuneration.
Governance team. This resulted in actions such Non-executive director remuneration doesn’t
as expanding the Committee reports to the Board include share options or performance-
to give the Board greater oversight. related elements.
Audit Committee Chair

The Audit Committee Chair met the specific
requirements around recent and relevant
Our Board delegates authority
financial experience throughout FY2020. to four Committees
Non-audit policy
We adopted a new non-audit policy in FY2019. 1. Nomination and Governance
There was limited non-audit work undertaken by Committee (Nom & Gov)
our external auditor during FY2020, see Note 32.
Our Chair, Gary Hoffman runs the Nom & Gov
Internal Audit Committee. The other members as of 29 February
We have a new Internal Audit function and 2020 were Tim Brooke, Amy Kirk, Keith Woollard
Internal Audit Charter. The Board approved this and Miles Grimshaw.
following consideration and recommendation by
the Audit Committee. Nom & Gov supports the Board by:
• leading the process for Board appointments;
Colleague and stakeholder engagement
Non-executive directors regularly attend • dealing with succession planning and making
our All Hands meetings to answer questions sure we have a diverse pipeline for Board and
from colleagues. senior management positions;
• monitoring our governance arrangements and The AuditCo supports the Board by:
making best practice recommendations to the
• making sure our internal and external audit
Board;
functions, external disclosures and controls
• approving appointments to the Board of environment remain effective.
Directors of subsidiaries and other companies
within the Monzo Group; and What the Committee did in FY2020:
• making sure we comply with the Senior
This Committee met seven times in FY2020 and
Managers’ Regime.
in those meetings the Committee:
What the Committee did in FY2020: • reviewed the internal audit plan;
• reviewed the outcomes of internal audits in line
This Committee met three times in FY2020, and
with the internal audit plan;
in those meetings they:
• reviewed and approved the FY2019 Annual
• reviewed Board composition, succession
Report and Accounts;
planning, diversity, training and specialist
knowledge. This included reviewing a formal • appointed new internal auditors;
Board Diversity Policy setting a target for
• set how the internal audit team works with the
FY2021 for 40% of the Board to be women;
rest of the business;
• led the process which resulted in the
• discussed the roadmap to a control-based
appointment of Phillip Riese and Fiona
audit; and
McBain*;
• reviewed the external auditor’s independence
• looked at the governance and Board
and set a formal policy around auditor
composition of our subsidiary companies;
independence.
• oversaw succession planning for the
senior management team and reviewed our
management responsibilities map (MRM). The 3. Our Board Risk Committee (BRC)
MRM is a formal document which shows how
prescribed responsibilities under the Senior Keith Woollard chairs the BRC. The other
Managers Regime are allocated; members as of 29 February 2020 were Amy Kirk
and Tim Brooke.
• reviewed the Board Register of Interests (a
document which records directorships/other
BRC helps the Board by:
business interests to identify conflicts of
interest); and • giving oversight and advice to maintain a
supportive risk culture;
• supervised the internal Board Evaluation for
FY2020 and the resulting action plan. • reviewing management’s recommendations
*in line with the Code, we used an external search agency, on managing and mitigating current and future
Ridgeway Partners, for our Board searches in FY2020. risks; and
• overseeing management’s implementation of
our risk strategy.
2. Our Audit Committee (AuditCo)
Tim Brooke chairs our AuditCo. The other

members as of 29 February 2020 were Amy Kirk
and Keith Woollard.
What the Committee did in FY2020: The Committee is responsible for making
sure we:
This Committee met ten times in FY2020 and in
• comply with laws, regulations and guidance;
those meetings the Committee:
• eliminate incentives for excessive risk taking
• reviewed and supervised the implementation
and encourages effective risk management;
of the enhanced ERMF; reviewed financial
regulatory submissions such as the ICAAP and • align colleague incentives to our long-term
ILAAP and the Recovery and Resolution Plan; success;
• analysed specific operational risk issues to • take into account the risk management
understand the root cause and how these can framework, liquidity and capital levels; and
be fixed in future;
• support the Board’s monitoring of how
• considered the growth environment and its company remuneration policies and practices
effect on product launches; support culture and strategy.
• reviewed improvements made to the quality
What the Committee did in FY2020:
assurance and complaints process within our
customer operations team; and
This Committee met eight times in FY2020 and in
• reviewed improvements made to our those meetings they:
outsourcing controls.
• arranged an external review of our share
options framework, and senior management
and material risk takers’ remuneration. Deloitte*
4. Our Remuneration Committee (RemCo)
did this as our main remuneration adviser;
Amy Kirk chairs RemCo. The other members • reviewed our travel policy;
as of 29 February 2020 were Tim Brooke, Keith
• reviewed our Gender Pay Gap;
Woollard and Gary Hoffman.
• benchmarked our Chair’s remuneration;
RemCo supports the Board by:
• assessed our Material Risk Taker remuneration;
• deciding the overall compensation for the
• reviewed Executive Director and Executive
Chair of the Board, Executive Directors and our
Manager remuneration, taking into account
senior executives. It also sets the remuneration
clarity, simplicity, risk, predictability and
scheme and policies for everyone who works at
proportionality; and
Monzo; and
• considered a risk report and recommendations
• making sure that rewards, incentives and
on remuneration from our Chief Risk Officer.
working environment for everyone who
*Deloitte has worked with several other areas across the
works at Monzo are taken into account when
business, including: Risk Management, Tax, Finance and People.
deciding Executive Directors’ and senior No individual Board Director has declared any connections
management pay. with Deloitte.
Our approach to remuneration In FY2020 the Board identified the following

key stakeholders (third parties whose interests
Our overall approach is to make sure that our we should take into account when making
remuneration attracts, motivates and retains the a decision):
people we need to deliver our mission.
• colleagues;
We aim to pay all our colleagues, including • customers;
Executive Directors, market competitive base
• suppliers and partners;
salaries that are affordable at our current stage of
growth and sustainable for the long-term. Every • the communities we serve;
colleague is also awarded share options that
• the environment;
aim to align their long-term interests with those
of the bank. We do not offer short-term variable • shareholders; and
remuneration as our culture is built around
• regulatory bodies.
creating long-term value.
We’ve made sure that when matters come to
Our clear and simple approach of fixed base
the Board for consideration, we’ve identified
salaries and share options supports effective risk
the impact on stakeholders, and made sure the
management as future reward value is linked to
Executive team has already fully considered this.
future value creation.
The Board weaves stakeholder considerations
Our approach to remuneration has operated as
into all of our decisions. Sometimes we have to
intended throughout the year.
make decisions that make trade offs between
some of these stakeholder groups. But when
All offers for new hires, and changes to existing
this happens, we always try to make sure that
remuneration, with a base salary of £150,000
the people impacted are treated fairly. Obviously,
or higher are considered by the Remuneration
not every stakeholder has an interest in every
Committee acting with delegated authority from
decision we make.
the Board.
Here are some examples of how we consider the
interests of – and nurtured our relationship with
Our stakeholders – a few of our stakeholders.
We’ve always put our stakeholders at the heart

of everything we do. We now have over 4 million Colleagues
customers, over 1,000 colleagues and many
shareholders – and we buy products and services These are any full-time, part-time, distributed or
from companies all around the world. All of these office-based colleagues or contractors.
people and organisations are our stakeholders.
How we engage with colleagues
Our Directors have a special responsibility
under section 172 of the Companies Act 2006 to Our people are what make Monzo special and are
consider the interests of our stakeholders in their always considered by senior management and
decision making. It’s part of their wider duty to the Board.
promote the long-term sustainable success of
the company, while maintaining high standards of
business conduct.
We hold weekly All Hands meetings, where In the US we’ve made our roadmap public to
colleagues share updates. There’s also a allow current and future customers to vote on
standing agenda item for Q&A, where anybody what feature they’d like to see next. This helps
can ask questions to the CEO, or Executive the team prioritise what products to build.
Directors, senior Executives and Non-executive
directors, depending on who is at the meeting. We give customers the opportunity to feed back,
telling us what’s working for them and what they
Non-executive members of the Board want us to build.
appear regularly at our All Hands to answer
colleague questions.
Suppliers and partners
Colleagues complete a monthly engagement
survey. This gives senior management and We work with in excess of 450 suppliers and
the Board data on what’s driving engagement partners locally and internationally. They provide
and areas to work on to improve culture. This a range of services from food and drink, to
employer net promoter score (eNPS) is monitored platform, to internal communication tools.
regularly at senior management meetings and at
Board level. How we engage with suppliers and partners
We maintain the highest level of integrity in

Customers all business relationships and only engage
with suppliers and partners that align with our
There are now over 4 million people who now values. We do this by undertaking a fair selection
have a UK or US account with Monzo. Our focus process to identify the product or service that
with customers is to deliver a high quality and is in our customers and our best interest. We
reliable product that’s supported by the best also aim to be commercially competitive and
possible customer service. make it easy for suppliers to deal with us. Our
selection process also includes meeting with our
How we engage with customers key suppliers and partners to understand their
processes and witness first-hand how they align
Customers are at the heart of Monzo, and with our values.
customer interest is at the forefront of
every decision. As part of our ongoing relationship we collaborate
with our key suppliers through workshops and
Accessibility and vulnerability – we have teams projects to improve our systems and processes
dedicated to making sure customers with optimising change management and reduction
accessibility challenges are kept in mind when in incidents.
designing new products and features. For more
information see section on Social Matters in the We also work with our card payment scheme
Non-Financial Reporting on page 66. providers and card manufacturers on new
customer offerings and card design innovation, to
Transparency with our customers is key; we offer competitive and useful propositions to our
regularly keep them updated with emails, in-app shared customers
notifications and blog posts on new products and
features, how to use Monzo and future plans.
The communities we serve Environment
We look at this in two ways: how our activities We look at the impacts of running our business
impact our most passionate advocates, on the environment and climate change and how
superusers and ambassadors and in terms of we can mitigate them.
society as a whole.
How we engage with the environment
How we engage with the community
We encourage our colleagues to be
As a company we engage with our community environmentally friendly and we aim to reduce
regularly, through our blog, office events and our carbon footprint and waste where possible.
our forum. Please see more information of how we engaged
with the environment in the section called
In November, we hosted an open event for Environment on page 58.
stakeholders called ‘The Future of Monzo’ which
showcased our vision of how we’ll “make money
work for everyone”. Shareholders
We also provide financial education for Anyone who owns Monzo shares. From venture
refugees/underbanked communities through capital and crowdfund investors to former and
the ‘No Barriers to Banking’ campaign. For current colleagues.
more information on this campaign and other
initiatives see section on Our Community and How we engage with shareholders
Social Matters in the Non-Financial Reporting on
page 66. We have two Investor Non-executive directors on
our Board, representing our two largest investors.
Our collaboration with ‘I Can Be’, a charity that
“brings 7 and 8 year-old girls into the world Our President, CEO, Chair and other Board
of work, introducing them to inspiring women members have frequent interaction with our
and helping them to discover the breadth of major shareholders.
opportunity around them”. They bring girls from
disadvantaged environments to tour the offices Last year we organised Investival, an event which
and learn about different jobs and opportunities. offered exclusive insights for crowdfunding
investors to find out more about Monzo. Gary and
COVID-19 has put some of our FY2021 community Tom represented the Board at Investival.
plans on hold, but we look forward to restarting
them as soon as possible.
Regulatory bodies New London office
As a regulated bank, we have two main financial The Board considered new office space for the
services regulators in the UK: FCA and PRA. London registered office. When approving the
We also work closely with a number of other new building lease, the Board looked at how the
financial and non-financial regulatory bodies, for office move would impact colleagues, based on
example: Bank of England, Financial Ombudsman, a thorough commuter survey. When approving
Information Commissioner’s Office (ICO). the fit-out contract for the new office, the Board
considered the steps being taken to make
How we engage with our regulatory bodies sure the office was as environmentally friendly
as possible.
We’re committed to an open and collaborative
relationship with our regulators and we support
this through a centralised team, the Regulatory Monzo Business
Affairs team. The team manages our day-to-day
interactions which include regular meetings In December 2019, the Board approved our new
with our management team as well as our growth plans for Monzo Business. In taking this
Board members, business and product updates, decision, the Board considered the impact of
information requests and thematic reviews. pursuing this renewed growth on regulators and
shareholders. The decision was also partly based
on feedback from our community and customers,
which indicated strong demand.
We’ve considered our
stakeholders in decisions
US debit card launch
Below are four examples of key decisions the
Board made last year and how key stakeholders At the start of the FY2020, the Board approved
were taken into consideration. the launch of our partnered debit card to the US
public. We considered the interests of customers,
regulators, shareholders and colleagues when
Business plan making this decision. The Board also asked for
several updates throughout the year to continue
Each year the Board approves our strategy monitoring progress and developments in this
and business plan for the next 3 years. The area and the continued impact on stakeholders.
plan highlights key risks and sensitivities.
Throughout the year, the Board then monitors
our performance against the plan and
discusses any actions required if performance
changes significantly. We considered our
stakeholders when adopting the plan and making
these decisions.
Non-Financial
Reporting
requirements
Non-Financial
Reporting
requirements
We’re now defined as a large business and have

to comply with the Non-Financial Reporting
requirements from sections 414CA and 414CB of
the Companies Act 2006. This is the first financial
year we’ve had to comply. We’ve detailed our
policies and achievements where available. For
the areas where we’re still developing policies
and the due diligence on them, we’ve explained
our progress. We look forward to building and
sharing more key performance indicators as
we grow.
The following table shows where to find

the information we’ve prepared to meet
the requirements.
Reporting Description References

requirement and policies
Environment We’ve identified our environmental footprint • Environment
as being low and so not a principle risk to the section p58.
business. We don’t have an environmental
policy yet, but we’re developing one to help
us consider our environmental impact.
Colleagues We have a strong focus on our colleagues • People section p59.
and their wellbeing. We’re transparent with • People policy.
them, building a strong, motivated and diverse • Health and safety.
team. We have a number of policies, training • Conflicts of interest.
and approaches to make sure everyone • Recruitment and
feels like they belong and have a voice. selection.
• Remuneration policy.
Community and Our focus on community and society • Our community and
social matters underpins our mission to make money work social matters, p66.
for everyone. Our policies and statements • Vulnerable
outline how we aim to help our customers customers policy.
and have a positive social impact. • Collections policy.
• Community
vision 2025.
• Accessibility
statement.
Anti-corruption Prevention of financial crime is a key • Financial crime p69.
and anti-bribery responsibility and commitment for us • Supplier and
as a bank. Our business and Financial Outsourcing Policy.
Crime Teams monitor these key risks by • Anti Bribery and
applying our policies on a daily basis. Corruption Policy.
• Market Abuse Policy.
• Whistleblowing Policy.
Human rights Our commitment to human rights and the • Respect for human
ethical treatment of our colleagues, suppliers rights, anti-corruption
and customers is aligned with our core values. and anti-bribery p69.
In FY2020 we became large enough to have
to report under the Modern Slavery Act. We’re
developing our policies and we’ll publish our
Modern Slavery Act Statement by August 2020.
Description of our principal risks • Our current risks p38.
and impact of our business activity
Description of our business model • Business model
and strategy p20.
Our approach to
the environment
Our policy Here’s what we’ve done so far
We’ve built a bank with a comparatively low We’ve reduced the carbon footprint and waste
environmental footprint. We’re branchless, digital from our offices and operations
and don’t directly buy securities that invest in We’re a branchless, mostly paperless bank with
carbon intensive projects. two offices in the UK (London and Cardiff) and a
co-working space in San Francisco.
But we’re a fast growing business, and we know
that as we grow, our environmental impact will We recycle in both offices and as of November
grow too. So we’re taking action on two fronts. 2019 we’ve also introduced compost bins and
We’re developing an environmental policy, which removed most single-use toiletries from our
will set out: London office. Our Wales office uses green
certified soap and washing up liquid and they
• how we act environmentally as a business;
only buy animal-friendly and organic products for
• how we’ll influence other businesses to do the the washrooms.
same; and
Our servers are hosted by a carbon-neutral
• how we can empower our customers to be
AWS plant in Dublin. This means that all the
more environmentally responsible.
non-renewable energy used by our servers
gets offset, so we have a net zero impact on
We’ve started working with key teams to reduce
the environment.
our impact on the environment. For example, our
Space team (who manage our office spaces) has
We encourage colleagues to be
taken steps to reduce our environmental footprint
environmentally friendly
as we move to a new London office, such as
Now that we have offices in the US and the
choosing a 100% green energy supplier.
UK, and team travel is common, we encourage
colleagues to buy offset credits for their work
flights, which they can expense as part of
Our environmental impact their trip.
One of our values at Monzo is to make a We also offer a cycle to work scheme to
difference. Over the past year we’ve taken encourage people to use environmentally friendly
individual actions to reduce our impact on transport for their commute. And our Welsh office
the environment. has signed the Business Healthy Travel Charter
Wales, where we’ve committed to making healthy
travel easier for our staff.
Our approach
to people
Our mission in the People Collective (Collectives We’re optimising our people
is the word we use for groups of people working
in the same area) is to help our colleagues do
data and platforms
the best work of their lives. We support the
Operational efficiency is at the core of what we
people lifecycle at Monzo: every stage someone
do at Monzo. New tooling has transformed our
experiences from the moment they join, to the
Customer Operations teams, and this year we‘ve
time that they leave. We give them tools and
introduced automated efficiency so we can focus
support so they can carry out our mission: to
on the things that only a human can do. We
make money work for everyone – and have a
formed our first People-specific product team
career that’s fulfilling and challenging, too.
made up of engineers, data analysts and business
analysts. Their mission is to improve the People
experience by bringing our team the best tools
We’re committed to to help us reach peak performance and give the
best experience to our colleagues.
growing Monzo safely
One of the team’s first projects was mapping
Our approach to people is driven by our core
a new joiner’s journey to better understand a
values. This year we introduced a new value:
colleague’s experience from the moment they
‘Think customer first; grow Monzo safely’.
arrive to the time they leave. This involves
‘Think customer first’ celebrates our passion
working collaboratively across various People
for good customer support and our enthusiasm
teams, to get full context of all People processes
for delighting customers. ‘Grow Monzo safely’
and figure out how to best improve them. We ask
calls out our focus and determination to set
ourselves whether the information we provide
the standard for compliance and fairness.
is easy to find and understand. We want our
We’re the fastest-growing bank in the UK and
colleagues to enjoy the same level of care and
it’s important that we take our regulatory and
delight that our customers do.
social responsibility seriously, and embed this in
everything that we do.
We’ve built a database that allows us to
completely own our internal data. This means
We’ve continued to grow our Risk and
we’re not reliant on third parties to keep our
Compliance teams so we make the best risk-
personal data safe. It enables us to analyse
based decisions we can. As a regulated bank
trends, informing strategy for areas such as
we take our responsibility to our customers and
diversity and engagement. This avoids us making
the wider banking industry seriously. Our new
misguided assumptions and helps us better
cultural onboarding experience explains what
understand our people.
this means to our new joiners, and emphasises
the importance of working closely with our three
lines of defence to keep our customers safe.
Please see the Risk Section (page 30) for the
areas of focus in FY2021.
As the fastest-growing bank in the UK, we’re now We want to create a strong, data-driven strategy
a large-sized company. Expanding so quickly has for inclusion, and we want to engage everyone
meant a lot of change for existing Monzonauts. in our Diversity & Inclusion (D&I) journey.
For the first time we saw our eNPS (employee We recognise there’s a lot to learn about
Net Promoter Score) drop. We’re still miles how to be inclusive in our day-to-day lives,
above benchmark within our industry, according alongside regularly challenging our own biases
to our engagement platform, Peakon. We pride and perspectives.
ourselves on high colleague engagement – and
while we know rapid change and growth can As a starting point, we’ve held listening sessions
impact engagement, the eNPS drop is a concern and created a tailored D&I survey to understand
and something we’ll be working to fix in FY2021. how our colleagues feel we’re doing in this
area – we’ve included these types of questions
We’ve always had a strong culture of in our monthly colleague engagement surveys.
transparency internally. It’s helped us to see We’ve also introduced a session to our cultural
problems as they emerge so we can fix them onboarding experience to get our new joiners
proactively. Looking forward, we want to thinking about how they can be inclusive from
empower managers and team leaders to offer the moment they arrive. This session helps us all
support to their reports and assess performance to understand our own privilege and go on the
consistently. We’ve introduced People Partners journey of allyship. Alongside this we’ve created
at Monzo, who pair with Collectives to make sure a D&I handbook and regularly share updates on
that we’re always looking to improve everyone’s what we’re doing in this area.
People experience, and recognising the needs
of our colleagues – especially as we continue On our blog you can find our most recent updates
to grow. on our work for the Women in Finance Charter,
and on the gender pay gap. You can also find our
2020 diversity and inclusion report.
Everyone should feel like
they belong at Monzo We’ve hired fantastic people
‘Help everyone belong’ has always been core who embody our values
to the way we work but we’ve only recently put
it into words. This year we started work on fully We want to recruit people who are passionate
embodying this. about making money work for everyone, and are
aligned with our values.
Feedback is important to us as it helps us grow We have two key areas of focus: refining the way
together. Our Hiring team has introduced a we’re measuring performance, and improving
candidate survey to shed light on our recruitment our manager training programme. We’re
process. We share the results of this survey with strengthening our review process so that we
the wider team on a monthly basis so that we can can easily see where people are making strong
create and implement regular improvement plans. contributions to their squads, and managers
It’s important to us that regardless of whether and colleagues can work together to shape
or not you’re successful in your application, you their careers at Monzo. We’ll be dedicating time
enjoy getting to know us and have an engaging, and energy to create a consistent development
human experience. ethos across the company, where managers
feel empowered and able to support their
We’re all working from home at the moment, but people and help them progress – having
before COVID-19, we loved that 42% of our team candid conversations on the different skills and
were distributed. It’s important that we don’t limit attributes people need to develop.
ourselves when it comes to finding great people
to join us, and to make sure that we’re being We’re excited by our current transition to a large-
flexible and accommodating towards all potential sized company with three offices worldwide and
new joiners. This year we held recruitment days a growing team. We’re committed to growing in a
all around the UK for our customer operations way that protects our customers and colleagues
roles. We did this because we know there are from risk and also safeguards the culture and
talented people across the country, not just people experience we’ve built over the last four
in London. years. As a People team it’s our responsibility to
guide people through a transition that can be
We’ve made great improvements in our internal exciting and challenging in equal measure. We’re
mobility process. Colleagues feel supported making sure we have the tools and data we need
to grow and thrive, whether that means to keep ahead of what our colleagues need from
stepping into a new role or area of the business, us today and in the future. We’re empowering
broadening their skills across disciplines, or and supporting colleagues to grow all the time,
staying focused on their specific career goals. We and we remain committed to making money work
updated our internal job board so that everyone for everyone.
has equal access to new opportunities. We’re
training our hiring squads to make sure that
we give fair and informed support to people
who want to move into a new role. For internal
mobility to work, our colleagues need to know
how they’re doing in their current roles and make
sure they’re setting realistic but ambitious goals
for development.
People Policies
Policy Summary QA/Due Diligence

People Policy Our People Policy outlines our See individual policy diligence below.
approach to making sure we have a
strong team that’s high performing,
motivated and professionally fulfilled.
People risk is the risk of financial,
operational or reputational loss due
to our team as a whole, or individuals
in it, not working optimally –
whether through being insufficiently
capable, motivated or effective,
or through improper conduct.
Health & Safety This policy sets out our high-level • We train and appoint first aiders and
approach to Health and Safety. fire marshals.
Our focus is to protect the health • We explain what people should do in
and safety of our colleagues and the event of a fire on their first day.
any visitors on our premises. • As a company we don’t provide nuts,
to protect people with allergies.
• We don’t provide any tablets or
medication either.
Conflicts of This policy outlines what it means • The People team reviews our
Interest to act with integrity and to make conflict of interest register every
sure we’re not compromised week, and follows up on any
in our decision making. potential conflicts with the person
individually.
• Our Second Line of Defence, the
Risk and Compliance Team, also
review this.
• Every year we share a company-
wide announcement reminding our
colleagues to log any conflicts.
Policy Summary QA/Due Diligence

Recruitment We aim to attract and hire • Finance and ExCo approve the final
and Selection exceptionally talented people who headcount plan.
best meet our needs. We do this • We’re in the process of rolling out
through a transparent, fair and non- interview and bias training to the
discriminatory hiring process. company. We’ll track interviewers to
confirm they’ve completed training.
• The Reward team determine pay
ranges by level and function. They
also review all offers to make sure
they’re within the framework and
approve any offers outside of the
framework.
• We review our new starters the
week before they start to confirm
that their pre-employment checks
are complete. We have an escalation
process in place for failed checks.
Remuneration This policy sets out our approach to • To make sure we’re sticking to our
Policy remuneration with all colleagues. reward principles the Reward team
Its objective is to make sure we approves all new hire offers and
can attract, motivate and keep the oversees all promotions.
people we need for each phase of our • They carry out an equal pay audit
growth. The Remuneration Committee and make recommendations to
approved the policy in February 2020. the Executive Committee for any
remedial action.
• They also review each element of
remuneration and check it aligns
with our values-reward map. We
adapt or discontinue any element
that doesn’t align.
• The Reward team reviews the
relevant regulatory requirements
and adapts any practises they don’t
consider to be compliant.
782 +3%
new colleagues Peakon aggregated
in the year response rate
FY2019 FY2020 FY2019 FY2020
713 1,495 78% 81%
867 2.48%
Monzonauts regrettable attrition
are office based rate this year
OFFICE DISTRIBUTED
58% 42%
2017 Q4 2018 Q4 2020 Q1
Ethnicity
the percentage of
people of colour has
increased by 4.02%
Asian 7.70% Asian 5.10% Asian 8.40%

Black 2.70% Black 3.88% Black 2.60%
Mixed 3.80% Mixed 7.76% Mixed 7%
Other 1.10% Not stated 0.20% Not stated 0.60%
White 84.70% Other 2.45% Other 2.70%
White 80.61% White 77.80%
Prefer not to say 1%
2017 Q4 2018 Q4 2020 Q1
Gender identity
the percentage of
people who identify as
women has increased
by 13.75% overall, and
50% in leadership
Women 33.20% Women 40% Women 45.50%
Non-binary+ 1.60% Non-binary+ 2.86% Non-binary+ 1.60%
Men 65.20% Men 57.14% Men 52.10%
2018 Q4 2020 Q1
Sexual orientation
the percentage of LGBQA
folks in Monzo has
increased by 15.53%
LGBQA 20.60% LGBQA 23.80%

Straight 79.40% Straight 76.20%
Our community
and social matters
The needs of all of our customers, particularly if This year we’ve introduced a new way for
they’re facing barriers or experiencing difficult customers to set up payment, without ever
circumstances, is a core part of our mission. having to speak or chat to the customer support
Over the past year many teams have worked team. It’s less intrusive than phone calls, and
to introduce products, policies and systems to reduces stress and anxiety. It also helps us
embed this in everything we do. reduce the cost of running our operations.
Today, we do most of the support for collections
These are the top four things we’ve done through the app, with most of it being completely
this year: self-service.
We’ve made web accessibility a priority and have

We’ve made our app, web and customer service been working with the Digital Accessibility Centre
more accessible (DAC) to carry out an accessibility assessment
(WCAG). This looks mainly at how customers
We’ve made some tasks in the app completely with visual and motor impairments interact
self-serve for customers who don’t feel with us and flags areas we need to improve. Our
comfortable interacting with a person. According aim over the next year is to certify web.monzo.
to the Money and Mental Health Policy Institute, com and monzo.me for AA compliance with
54% of financial service customers with a mental accessibility standards.
health issue, and 32% of people who don’t
suffer from a mental health problem, find phone To make sure we stay focused on building
calls with their bank stressful or impossible.1 products that are accessible to all, we’ve updated
Conversations can be more difficult when our engineering progression framework to
dealing with unpleasant situations, like talking to encourage engineers to focus on non-functional
debt collectors. requirements like accessibility and performance.
We’re working with the Money and Mental Health

Policy Institute (MMHPI) to assess us against
their new Mental Health Accessibility Standards.
The results will help us better understand the
challenges that customers with mental health
problems face, and make Monzo easier to use.
1 https://www.moneyandmentalhealth.org/wp-content/
uploads/2018/06/Money-and-Mental-Health-Access-Essentials-
report.pdf p.18
We’ve developed a financial literacy programme We continued to promote our gambling block
in partnership with UK social inclusion charities on social media. 4.1 million people have seen
our posts about it, and 150,000 have engaged
As part of the No Barriers to Banking campaign, with them. This means we’re communicating the
we’ve created a set of learning resources feature to people who need to hear about it.
designed to help those in financially excluded
communities make good decisions about money. We launched the gambling block in 2017
Feedback from people with lived experience, and about 205,000 people have used it. Our
shared during listening sessions, has shaped research indicates that around 20% of people
the content. It addresses the key challenges who use the gambling block (who answered
marginalised groups face when it comes to our survey last year) are concerned about their
financial wellbeing. gambling. This is higher than our estimates
for how many customers might be affected by
Since October 2019 we’ve partnered with 13 problem gambling based on the national statistic
charities including the Red Cross, Evolve Housing (between 5–15% of the UK population).
and Tact Care to pilot the delivery and creation
of workshops and learning guides supporting On average we block 2–3 gambling transactions
financial literacy. This year we’ve run 9 per gambling block user per month, or between
workshops and hosted 5 listening sessions, with 410,000 and 615,000 gambling transactions in
a further 7 charities trialling the content we’ve total per month.
created as a reference. In the coming months we
want to increase the reach of this work by making
these resources available to all charities in the We’re using our Share with Us tool to decide
UK and community organisations in the form of what we should improve next
leaflets, blog posts and in-person training for
support colleagues. Launched in 2018, it allows customers to write
any information they want to share with us
securely and confidentially through the app. We
We’ve continued to protect vulnerable customers use this to flag vulnerable customers and help
them however we can.
This year, we launched new tools for the team
that supports our vulnerable customers. Customers use Share with Us to tell us about
their circumstances. The three areas we see
We built a tool that allows us to log specific most are:
details of our interactions with vulnerable
1. Mental health issues.
customers (with their consent). This means we
can start to understand how many vulnerable 2. Financial difficulties.
customers we’re supporting, what types of
3. Financial education.
vulnerabilities they’re experiencing and whether
we were able to help them, or if we had to guide
That’s why this year we’ll focus on our approach
them to external support.
to mental health by looking at the Money Mental
Health Policy Institute Accessible Standards,
We also now have a vulnerability assessment
making sure we take a human approach to our
in place. This is a questionnaire we can use to
support for people in financial difficulties and
retrospectively assess a customer’s situation
creating financial education content for people
when we think we might have missed an
who face barriers to financial services.
opportunity to identify the fact that they needed
extra support.
These tools help us protect vulnerable

customers. They make sure that appropriate flags
appear on a person’s account so our team knows
the customer’s support needs upfront, and allow
us to make adjustments where we might have
failed to spot signs of vulnerability.
Social policies and statements
Policy Summary QA or Due diligence

Vulnerable This policy covers how we identify We regularly quality assess
customers policy and support customers who are in customer service conversations
a vulnerable position, and how we with vulnerable customers to make
train our colleagues and approach sure they’re up to our standards.
design to give these customers We also have a Vulnerability
the best experience possible. Assessment Questionnaire to
improve how quickly and accurately
we identify vulnerable customers.
Collections policy This policy covers how we collect We regularly review:
money customers owe us in a way • Customer support interactions to
that’s fair, transparent and focused on make sure we’ve complied with all
delivering good customer outcomes. relevant regulations and guidance,
and resolved customers’ issues.
• Our procedures and guidance, to
make sure they’re still fit for purpose
and delivering good customer
outcomes.
Community This document lays out the vision for
vision 2025 how we’ll drive financial inclusion
and education until 2025, and
details the action plan for 2020.
Accessibility Our accessibility statement details We’ve partnered with the Digital
statement our approach to accessibility. Accessibility Centre to measure
Accessibility for us applies to both monzo.com against the Web Content
physical and mental health as well Accessibility standards (WCAG).
as wider circumstances. We want We’re assessing ourselves
everyone to be able to access Monzo. against the MMHPI Mental
Health Accessible Standards.
Respect for human

rights, anti-corruption
and anti-bribery
Preventing and tackling bribery and corruption is Relevant laws and regulations say we have
anchored in our values. Senior management have to take steps to prevent criminals from using
a clear message of respecting human rights and Monzo to facilitate crime. We also have a moral
a zero-tolerance approach to financial crime. and social responsibility to our customers
and stakeholders to prevent, deter and detect
financial crime. Strong financial crime controls
Preventing financial crime (anti-bribery and also protect against reputational damage.
anti-corruption)
We’re continuing to review and develop our
We’re committed to preventing financial financial crime control framework. We want to
crime and have created clear lines of internal make sure that our controls meet regulatory
accountability, responsibility and reporting. It’s requirements and address weaknesses that we
the business’ responsibility to prevent financial have identified. Specifically we are:
crime, put appropriate internal controls in place
• Reviewing our systems and controls to make
and check they’re working effectively, and
sure that they are fit for purpose and comply
train colleagues appropriately. The second line
with UK laws;
Financial Crime team supports the business
in this responsibility within the Risk and • Assessing whether our governance and
Compliance function. oversight is sufficient to address any
weaknesses that we identify;
We have a Financial Crime Policy which sets
• Putting in place recurring quality assurance to
out our approach to preventing, deterring
help identify any ongoing weaknesses in our
and detecting financial crime, which includes
processes; and
anti-bribery and corruption, committed by our
customers, suppliers, and people who work • Testing and evaluating the effectiveness of our
at Monzo. controls on an ongoing basis.
All of our colleagues complete training in our We have strong views on our moral and social
financial crime and market abuse policies when responsibility to maintain an ethical supply-
they join and have annual refresher courses. chain, which includes making sure there is no
Our onboarding team checks our suppliers use of slavery or human trafficking. As we’re a
to make sure they are ethically aligned to bigger business now, we have to comply with the
our beliefs and maintain high standards of Modern Slavery Act (MSA), which says we have to
integrity. We remain committed to improving publish at statement about our stance on slavery
our supply-chain by reviewing our policies and on our website. So we’re developing our policies
internal controls. Transparency is a core belief and due diligence to meet the requirements of
at Monzo, and we encourage colleagues to the MSA before publishing our Statement by
speak up with confidence to their managers August 2020.
or our Whistleblowing Champion if they have
any concerns. The Strategic Report was approved by the Board
of Directors and signed on behalf of the Board.
Human rights
We believe diverse teams make better decisions.

We’re committed to promoting an inclusive and
empowering working environment to support
each and every team member. Respecting human Alwyn Jones
rights and allowing people to feel comfortable Director
and confident are part of our values. We apply 29 July 2020
these beliefs to the interactions and processes
for managing our colleagues, our suppliers and
our customers.
Group Directors’
report
The Directors present their report and audited Results and dividends
financial statements for the year ended 29
February 2020 for Monzo Bank Limited (“The The consolidated loss for the year after taxation
Bank”) and the Monzo Group (“The Group”). was £113.8m (FY2019: loss of £47.2m). The
Directors do not recommend a final dividend
Monzo Bank Ltd is a private limited company, (FY2019 – £nil).
incorporated and domiciled in England and
Wales, with its registered office in England and is
authorised by the Prudential Regulation Authority Directors’ liabilities
(PRA) and regulated by the PRA and Financial
Conduct Authority (FCA). Monzo’s registration We have indemnified all of the Group’s directors
number is 09446231. from claims brought against them by third parties
(subject to section 234 of the Companies Act
We’ve prepared these financial statements under 2006). The insurance does not cover claims
International Financial Reporting Standards as arising from fraud or dishonesty. The indemnity
adopted by the European Union. was in place during the year.
The following information, required by the 2008

Directors Regulations, is included in the Strategic Report:
• a fair and balanced review of the business;
The Directors who served the Company during
the year and up to the date these financial • a description of the principal risks and
statements were approved were: uncertainties facing the business;
• G Hoffman (Chairman) • a description of our principal objectives,
strategy and business model;
• T Blomfield (Resigned 17 June 2020)
• an analysis of developments and performance
• T Brooke
for the financial year and the position at the
• E Burbidge end of the year;
• M Grimshaw • trends and factors likely to affect the future
development, performance and position of the
• A Jones (Appointed 5 April 2019)
business;
• A Kirk
• information on our colleagues and
• F McBain (Appointed 1 January 2020) community; and
• P Reise (Appointed 1 July 2019) • information about gender diversity.
• K Woollard
We appointed TS Anil to the Board, subject to PRA

approval on 17 June 2020.
Donations There have been no other material post-balance

sheet events.
We haven’t made any donations or incurred any
expense to any registered UK political party or
other EU political organisation. Financial instruments
The Bank finances its activities by issuing

Branches ordinary shares, as disclosed in Note 28, and
through cash deposits held as disclosed in
We don’t have any branches in or outside of Note 10. The Bank also holds customer deposits
the UK. classified as a financial liability, and issues
overdrafts and loans to customers which
are classified as financial assets. The Bank
Events since the balance sheet date makes treasury investments in short-dated UK
Government Debt. Other financial assets and
We’ve listed the key events that have happened liabilities like trade creditors come from the
since the balance sheet date below (see Note 33 Bank’s operating activities. We record foreign
for more details): currency liabilities using the foreign exchange
rate at the date of the transaction.
• we revised our economic outlook to include
risks associated with the COVID-19 pandemic;
Read Notes 22 and 23 for information on
• we launched Monzo Business in March 2020 managing risks related to financial assets
and Monzo Plus in July 2020; and liabilities.
• we made the difficult decision to close our Las
The Group doesn’t use any other
Vegas office and impair our investments in
financial instruments.
Monzo Support Inc and Monzo Inc;
• we switched all our overdrafts from fee-based
to APR at the beginning of April 2020; Research and development activities
• we announced potential redundancies
We invest in the development of our own
impacting our colleagues in the UK;
platforms and products, so we’ve applied to
• Tom Blomfield stepped in to a new role claim Research & Development (R&D) relief from
as President and we appointed TS Anil as HMRC, see Note 13.
CEO; and
• we completed a £58m fundraising round on 15
June 2020; and
• we began a regulatory review into our financial
crime procedures.
Policy on employing people living Our approach to transparency and

with disabilities colleague engagement
We’re committed to employing and supporting We default to transparency, so colleagues have

colleagues in line with the Equality Act 2010 and access to any information that’s relevant to
our People Policy. We also want to make sure them. We hold company-wide meetings weekly
disabled people can fulfil their potential and where people can share their opinions and ask
realise their aspirations. questions of management.
We make reasonable adjustments to support all All colleagues are involved in Monzo’s
disabled job applicants and colleagues. performance through our share option
schemes. They’re kept up to date with business
Some examples of supportive adjustments we’ve performance through a weekly KPIs email sent
made in the past include: to everyone at Monzo, as well as dashboards
highlighting monthly financial performance.
• making changes to shift patterns (such as
phased return to work, flexible working hours or
part-time working);
Our approach to engagement with
• giving extra training or mentoring; other stakeholders
• making access alterations to the office
We have included a statement in line with
premises;
our Section 172 requirements under “Our
• making sure we give information in accessible stakeholders” within the “Governance at Monzo”
formats; section of the Strategic Report. This can be found
on page 51.
• modifying equipment or providing specialist
equipment; and
• any other ad hoc reasonable request, like These statements are prepared on a going
someone with social anxiety disorder being concern basis
given their own desk instead of hot-desking.
The going concern basis is dependent on
The list above certainly isn’t limited. Our policy maintaining enough capital to fund the balance
aims to accommodate all reasonable requests to sheet and meet our capital requirements. The
make sure our people are fully supported during Directors have considered a number of factors
their time at Monzo. including the current and forecast performance
of the Group and the impact the COVID-19
pandemic is having on the business. Based
on this we have made an assessment of going
concern, and that the Group can operate for at
least 12 months from the date these financial
statements are approved.
As part of the going concern assessment the However, the Group is loss making and our
Board considered: revenue streams have been significantly
impacted by the COVID-19 pandemic and
• the significant impact of the COVID-19
resulting macro-economic uncertainty.
pandemic on the Group’s revenues and ECL
Regulatory reviews will also lead to stricter
charges;
financial crime requirements. This may result
• the £58m fundraising, in June, on the Bank’s in lower forecasted customer numbers and
capital position; revenues, along with increased costs associated
with correcting areas of concern. This increases
• the 3 year business plan and management
the risk that the Group will not be able to
actions which may be necessary depending on
execute its business plan, which could adversely
the Group’s performance;
impact its ability to generate a profit or raise
• current and future regulatory capital sufficient capital to meet future regulatory
requirements, which increase over time; capital requirements.
• new product launches and constraints brought
Due to these obstacles, the Directors recognise
on by the current economic outlook;
there are material uncertainties that cast
• the Group’s liquidity and its ability to manage significant doubt upon the Group’s ability to
stress scenarios; continue as a going concern. The financial
statements do not contain adjustments that
• valuation concerns and the requirement to
would result if the company was unable to
consider certain assets for impairment;
continue as a going concern.
• operational resiliency with respect to Monzo’s
ability to work remotely, our key suppliers and The Directors remain confident in Monzo’s ability
our colleagues’ ability to serve our customers; to execute its business plan and raise capital if
necessary due to the following reasons:
• the Group’s ability to remain focused on
governance and control during the crisis; • Monzo’s reputation, customer base and
products continue to allow us to grow our
• the resiliency of our IT systems and core
customer base and be responsive to customer
banking platform;
needs. During such uncertain times being
• the uncertainty about the impact of regulatory agile and flexible will be advantageous
reviews; when compared to some of our institutional
competitors.
• changes in law or regulation that could
adversely affect the Group; and
• government and regulator intervention to
support the economy and banking industry.
• Management’s dedication to achieve our Disclosing information to the auditor

business plan and taking difficult management
actions if necessary. For example we have So far as each person who was a director at
already begun closing our Vegas office, we the date of approving this report is aware,
have announced potential redundancies, there’s no relevant audit information, being
management and many other colleagues have information needed by the auditor in connection
taken salary sacrifices, we are controlling our with preparing its report, which the auditor is
growth and we’re optimising revenues from not aware of. Having made enquiries of fellow
our most profitable customers. If economic directors and the Group’s auditor, each director
stresses continue to impact our business, has taken all the steps that they’re obliged to
we also have further measures we can use to take as a director to make themselves aware of
reduce costs and control our balance sheet. any relevant audit information, and to establish
that the auditor is aware of that information.
• The unprecedented support from the UK
Government, regulators and central banks
around the world. We have made use of the
Auditor
government furlough scheme, like many
businesses, and believe the Government will
Ernst & Young LLP have been re-appointed
continue to be supportive.
pursuant to section 487(2) of the Companies
• Our supportive investor base. We have Act 2006 unless the members or directors
successfully fundraised during a pandemic resolve otherwise.
mainly from our existing investors which
highlights their belief in the Group. We are On behalf of the Board
confident that if we continue to execute
our plan this could be achievable again if
necessary.
We therefore expect the Group to have sufficient

financial resources to meet our regulatory
requirements for at least 12 months and conclude Alwyn Jones
it remains appropriate to continue preparing our Director
financial statements on a going concern basis. 29 July 2020
Statement
of Directors’
responsibilities
The Directors are responsible for preparing the • make an assessment of the Group’s and
Strategic report, Group Directors’ Report and Company’s ability to continue as a going
the financial statements in accordance with concern, and if appropriate prepare the
applicable United Kingdom law and regulations. financial statements on a going concern basis.
Company law requires the Directors to prepare The Directors are also responsible for keeping
financial statements for each financial year. adequate accounting records that are sufficient
Under that law, the Directors have to prepare to show and explain the Group’s transactions.
the Bank and Group financial statements under They have to disclose with reasonable accuracy
International Financial Reporting Standards at any time the financial position of the Group and
(IFRS) as adopted by the European Union. make sure that the financial statements comply
with the Companies Act 2006.
Under Company Law the Directors must not
approve the financial statements unless they’re They’re also responsible for safeguarding the
satisfied that they present a true and fair view of assets of the Group and for taking reasonable
the financial position, financial performance and steps to detect and prevent fraud and
cash flows of the Bank and Group for that period. other irregularities.
In preparing those financial statements the
Directors need to: Approved by the Board and signed on behalf of
the Board.
• select suitable accounting policies in
accordance with International Accounting
Standard 8: Accounting Policies, Changes in
Accounting Estimates and Errors and then
apply them consistently;
• present information, including accounting
policies, in a manner that provides relevant, Alwyn Jones
reliable, comparable and understandable Director
information; 29 July 2020
• provide additional disclosures when
compliance with the specific requirements
in IFRSs, as adopted by the EU, is insufficient
to enable users to understand the impact
of particular transactions, other events and
conditions on the financial performance;
• state that we have complied with IFRSs as
adopted by the EU, subject to any material
departures and explained in the financial
statements; and
Independent
auditor’s report
To the members of
Monzo Bank Limited
Opinion • the parent company financial statements have

been properly prepared in accordance with
In our opinion: IFRSs as adopted by the European Union as
applied in accordance with the provisions of
• Monzo Bank Limited’s group financial
the Companies Act 2006; and
statements and parent company financial
statements (the “financial statements”) give • the financial statements have been prepared
a true and fair view of the state of the group’s in accordance with the requirements of the
and of the parent company’s affairs as at 29 Companies Act 2006.
February 2020 and of the group’s loss for the
year then ended; We have audited the consolidated financial
statements of Monzo Bank Limited
• the group financial statements have been
which comprise:
properly prepared in accordance with IFRSs as
adopted by the European Union;
Group Parent company

Consolidated statement of financial Statement of financial position
position as at 29 February 2020 as at 29 February 2020
Consolidated statement of comprehensive Statement of comprehensive income
income for the year then ended for the year then ended
Consolidated statement of changes Statement of changes in equity
in equity for the year then ended for the year then ended
Consolidated statement of cash Statement of cash flow for the year then ended
flows for the year then ended
Related notes 1 to 33 to the financial Related notes 1 to 33 to the financial
statements, including a summary of statements, including a summary of
significant accounting policies significant accounting policies
The financial reporting framework that has been

applied in their preparation is applicable law
and International Financial Reporting Standards
(IFRSs) as adopted by the European Union and, as
regards the parent company financial statements,
as applied in accordance with the provisions of
the Companies Act 2006.
Basis for opinion Material uncertainty relating

We conducted our audit in accordance with
to going concern
International Standards on Auditing (UK) (ISAs
We draw attention to the Basis of Preparation
(UK)) and applicable law. Our responsibilities
in Note 1 in the financial statements, which
under those standards are further described
indicates that the ability of the group to continue
in the Auditor’s responsibilities for the audit of
as a going concern is subject to material
the financial statements section of our report
uncertainty. The group is loss making and its
below. We are independent of the group and
revenue streams and expected credit losses
parent company in accordance with the ethical
have been significantly impacted by COVID-19.
requirements that are relevant to our audit of
There is a risk that the group will not be able
the financial statements in the UK, including
to execute its business plan, which could
the FRC’s Ethical Standard as applied to public
adversely impact its ability to generate profits
interest entities, and we have fulfilled our other
or raise capital to meet future regulatory capital
ethical responsibilities in accordance with
requirements. This has given rise to the following
these requirements.
material uncertainties:
We believe that the audit evidence we have 1. Whether the group will be able to access new
obtained is sufficient and appropriate to provide a funds available at the levels required either
basis for our opinion. through future equity capital raising or tier 2
debt;
2. Market conditions over coming months in light
of the continuing spread of COVID-19, such
as the extension of a six month recovery to a
nine-month or twelve month period instead.
This would lead to lower than expected results
against plan, at levels which may cause the
Group’s capital resources to fall below the
minimum levels requirements;
3. Whether the group has the ability to execute
its business plans, which includes individual
and collective assumptions relating to new
product launches, point of sale volume and
customer growth, and future management
actions.
As stated in Note 1, these events and conditions • We evaluated management’s plans for future
indicate that a material uncertainty exists that actions in relation to its going concern
may cast significant doubt on the Group’s ability assessment by inspecting board meeting
to continue as a going concern. Our opinion is not minutes, performing a downside sensitivity
modified in respect of this matter. analysis to determine the implications should
management be unable to carry out such plans
We describe below our audit responses to the and reviewed events occurring subsequent
risks relating to going concern: to the balance sheet and up to the date of the
auditor’s report for evidence of management’s
• The audit engagement partners increased
intent and ability to carry out such plans.
their time directing and supervising the audit
procedures on going concern and senior • We utilised our regulatory specialists to inspect
members of the audit team increased their regulatory correspondence, review the costs
time and involvement in performing the audit associated to regulatory reviews and assess
procedures on going concern. the overall impact of on-going reviews on the
basis of the capital calculation at 29 February
• We confirmed our understanding of
2020 and for the twelve months from the date
management’s going concern assessment
of our audit opinion;
process.
• We used our regulatory specialists to also
• We used our valuation specialists to test the
review the liquidity position and assess
mathematical accuracy of the models.
whether there was a reasonably foreseeable
• We also used our valuation specialists risk of a liquidity shortfall in the next twelve
to challenge the appropriateness of months.
management’s forecasts by assessing
• We discussed the bank’s overall capital
historical forecasting accuracy and performed
requirements with the Prudential Regulation
our own reverse stress tests and downside
Authority (‘PRA’) and inspected approval
sensitivity analysis on individual assumptions
from the PRA for the classification of further
and composite scenarios (including scenarios
capital raising as Core Equity Tier 1 capital for
to reflect the potential impacts of COVID-19) in
prudential reporting purposes.
order to understand the impact on liquidity and
capital requirements. • We assessed the disclosures in the Annual
Report & Accounts relating to going concern,
including the material uncertainties, to ensure
they were in compliance with IAS1.
Overview of our audit approach
Key audit matters • IFRS 9 Financial Instruments – Expected

credit loss (‘ECL’) provision
• Improper revenue recognition – Payment
Network Provider Bonus Income
• Developing control environment
• Share Based Payments
Audit scope • We performed an audit of the complete
financial information of one component
and audit procedures on specific balances
for a further two components.
• The components where we performed full
or specific audit procedures accounted
for 100% of Profit before tax, 100% of
Revenue and 100% of Total assets.
Materiality • Overall materiality of £1.28m which
represents 1% of equity.
In addition to the matter described in the Material

Key audit matters Uncertainty Related to Going Concern section,
we have determined the matters described below
Key audit matters are those matters that, in our
to be the key audit matters to be communicated
professional judgment, were of most significance
in our report, which are consistent with the
in our audit of the financial statements of the
prior year.
current period and include the most significant
assessed risks of material misstatement
(whether or not due to fraud) that we identified.
These matters included those which had the
greatest effect on: the overall audit strategy, the
allocation of resources in the audit; and directing
the efforts of the engagement team. These
matters were addressed in the context of our
audit of the financial statements as a whole, and
in our opinion thereon, and we do not provide a
separate opinion on these matters.
Risk Our response to the risk Key observations communicated

to the Audit Committee
IFRS 9 Financial Instruments – expected credit loss Having assessed the design and implementation of Our testing of models and model assumptions
(‘ECL’) provision controls, we undertook a substantive audit approach. identified some instances of over and under
We performed the following procedures: estimation. We aggregated these differences and
Expected credit loss provision of £20.0m (FY2019: were satisfied that the overall estimate recorded was
£3.1m) We tested the data used in the ECL calculation on a reasonable.
sample basis. In order to complete this testing, we
Refer to the Accounting policies (page 105); and independently reconciled a sample of data feeding The COVID-19 adjustment on the ECL as at year
Note 23 of the Consolidated Financial Statements the models to underlying support. end was within our independently established
(Page 128). reasonable range;
We developed a full challenger approach, this
Loans and advances to customers comprise included applying our own independent assumptions Overall provision levels were reasonable which
unsecured personal loans and overdrafts. including Probability of Default, Loss Given Default, also considered available peer information and our
Credit provisions represent Management’s best Exposure at Default (EAD) and Significant Increase in understanding of the credit environment.
estimate of impairment and significant judgements Credit Risk (SICR), to model our own estimate of the
ECL provision. We are satisfied that provisions for the impairment of
and estimates are made in determining the timing loans and advances to customers are reasonable and
and measurement of expected credit loss (‘ECL’). In addition, we assessed the base and alternate recognised in accordance with IFRS9.
The key judgements and estimates in respect of the economic scenarios, including challenging probability
timing and measurement of ECL include: weights and comparing to other scenarios from a
variety of external sources, as well as EY internally
a. The accounting interpretations, modelling developed forecasts.
assumptions and data used to build the models
that calculate ECL; We also assessed whether forecast macroeconomic
variables were appropriate, including GDP,
b. Inputs and assumptions used to estimate the unemployment and mortgage interest gearing,
impact of the multiple economic scenarios; through our independent challenger approach.
c. Allocation of assets to stage 1, 2 or 3 using criteria
We challenged model adjustments for
in accordance with IFRS9; and
appropriateness using our knowledge and experience
d. Completeness and valuation of post model across the industry as well as recalculating their
adjustments, including the risk of management accuracy.
override
We recalculated the staging of all unsecured
personal loans and overdrafts and noted no material
differences.
We considered the impact of the COVID-19

pandemic on the ECL as at year-end and ensured
that appropriate disclosures had been made in the
financial statements to reflect the impact of these
events.
Improper revenue recognition – Payment Network To address the identified risk of Payment Network We concluded that the revenue recognised
Provider Bonus Income Provider Bonus recognition, we took a substantive relating to the Payment Network Provider
based approach and performed the following audit Bonus is reasonable and recognised in
Payment Network Provider Bonus recognition in the procedures: accordance with the requirements of IFRS 15.
current year is £1.7m (FY2019: £0.9m).
• We obtained an understanding of the key controls
Refer to the Accounting Policies for Payment around the revenue recognition process for
Network Provider Bonus Income (page 105); and Payment Network Provider Bonus Income and
Note 5 (page 108) of the Consolidated Financial tested the design and implementation of these key
Statement. controls.
We reviewed all revenue streams recognised by • We reviewed the contracts and involved our
the group and assessed the subjectivity of each technical accounting experts to assess whether
of these streams and which could give rise to a the accounting treatment for the Payment Network
material error in the financial statements. Provider Bonus Income is in accordance with IFRS
15.
We determined that the Payment Network Provider
Bonus Income contractual arrangements were • We obtained external confirmation from the
subjective in nature and we assessed that this could Payment Network Provider of the volumes
lead to material error through non compliance with represented as achieved to date.
the requirements of IFRS 15. • We recalculated the bonus earned during the
current year against the contractual agreement with
We determined that all other streams (including
the Payment Network Provider.
Overdraft Income, ATM Fee Income and Interchange
Fee Income) are not subjective in their application • We vouched the bonus paid by the Payment
and have excluded them from the significant risk. Network Provider to the bank statements.
Risk Our response to the risk Key observations communicated

to the Audit Committee
Developing Control Environment Our audit approach included an assessment of the We highlighted to the Audit Committee that as the
process level controls that management relies on for business continues to experience rapid growth,
The group is still in a relatively early stage of financial reporting and regulatory matters. this brings with it challenges in respect of the
development and the governance and control need to ensure there are appropriate governance
environment has not yet matured fully. In particular, We involved our IT specialists to perform testing of IT and controls in place across the three lines of
there is a risk relating to the design, implementation general controls relating to the core banking platform defence and an appropriate level of skills and
and operating effectiveness of the IT general and NetSuite and our forensic specialists to perform experience within the group. We note that whilst
controls over the core banking platform and testing on the customer acceptance procedures. progress has been made in the developing control
NetSuite which we have deemed to be the key environment, the pace of improvement is not
systems impacting significant financial statement Where we were unable to place such reliance, we
addressed the increased risk by designing and then keeping up with the pace of growth in the business
accounts. and the accompanying risks. Our observations
undertaking audit procedures to obtain a greater
In such circumstances, where we have not relied on proportion of evidence from substantive testing and communicated to the Audit Committee included the
financial or IT controls, we are required to undertake the use of increased sample sizes. need to ensure that controls, including customer
additional substantive audit procedures in order acceptance and IT general controls, are designed
to gain reasonable assurance over the balances and implemented effectively and embedded so that
reported in the financial statements. they are operating effectively during the period and
adequately documented.
We highlighted to the Audit Committee that we

were not in a position to rely on controls and so we
undertook a substantive audit approach.
Share based payments In respect of Share Based Payments, we undertook We concluded that the valuation and disclosures
a substantive audit approach and performed the relating to share based payments are reasonable and
Share based payments expense in the current year following procedures: in accordance with IFRS.
is £14.3m (FY2019: £2.5m)
• We obtained an understanding of the key controls
Refer to the Accounting policies (page 105); and around the share based payments process and
Note 30 (page 143) of the Consolidated Financial tested the design and implementation of these key
Statements. controls.
There is a risk that the judgements made by • We involved our technical accounting experts to
management in the valuation of share based assess whether the accounting policy relating to
payments are not reasonable and not in accordance share based payments is in accordance with IFRS 2.
with IFRS.
• We involved valuation specialists to assess the
reasonableness of the following parameters:
— Key input parameters, namely: risk free rate,
volatility, expected life, dividend yield and share
price, into the valuation model;
— Completeness of the parameters in the valuation
model;
— Methodology design of the valuation model; and
— Recalculation of the fair value for all new options
granted during the year under audit.
• We tested the completeness of share based
payments expense by performing the following
procedures:
— We reconciled share options granted with
the share options recorded in the expense
calculation;
— We reconciled the employees in the payroll
expense to those in the share based payments
expense. For a sample of employees in
payroll expense that were not recorded in the
share based payment expense, we obtained
confirmation that shares options had not been
granted to these employees;
— We performed cut off procedures at the balance
sheet date and for a sample of share options
granted before the year end but recorded post
year end, to determine whether they were
recorded in the correct period.
• We vouched a sample of options granted
to underlying share based payments option
certificates and employment contracts.
• We performed a reconciliation between the
valuation outputs and the general ledger.
An overview of the The reporting components where we performed

audit procedures accounted for 100% (FY2019:
scope of our audit 100%) of the group’s Loss before tax, 100%
(FY2019: 100%) of the group’s Revenue and
100% (FY2019: 100%) of the group’s Total assets.
Tailoring the scope
For the current year, the full scope components
contributed 100% (FY2019: 100%) of the group’s
Our assessment of audit risk, our evaluation of
Loss before tax, 97.16% (FY2019: 100%) of the
materiality and our allocation of performance
group’s Revenue and 95.06% (FY2019: 100%)
materiality determine our audit scope for
of the group’s Total assets. The specific scope
each entity within the group. Taken together,
component contributed 2.84% (FY2019:0%) of
this enables us to form an opinion on the
the group’s Loss before tax, 4.94% (FY2019: 0%)
consolidated financial statements. We take into
of the group’s Revenue and 0.1% (FY2019: 0%) of
account size, risk profile, the organisation of the
the group’s Total assets. The audit scope of these
group and effectiveness of group-wide controls,
components may not have included testing of all
changes in the business environment and other
significant accounts of the component but will
factors such as recent Internal audit results when
have contributed to the coverage of significant
assessing the level of work to be performed at
accounts tested for the group.
each entity.
In assessing the risk of material misstatement to

Changes from the prior year
the group financial statements, and to ensure we
had adequate quantitative coverage of significant
We have included specific scope audit of Monzo
accounts in the financial statements, of the three
Inc. this year.
reporting components of the group, we selected
all three components covering entities within
United Kingdom and the United States of America,
Involvement with component teams
which represent the principal business units
within the group.
All audit work performed for the purposes of the
audit was undertaken by the group audit team.
Of the three components selected, we performed
an audit of the complete financial information
of one component (“full scope components”)
which was selected based on their size or Our application of materiality
risk characteristics. For the remaining two
components (“specific scope components”), we We apply the concept of materiality in planning
performed audit procedures on specific accounts and performing the audit, in evaluating the effect
within that component that we considered had of identified misstatements on the audit and in
the potential for the greatest impact on the forming our audit opinion.
significant accounts in the financial statements
either because of the size of these accounts or
their risk profile.
Materiality On the basis of our risk assessments, together

with our assessment of the group’s overall
The magnitude of an omission or misstatement control environment, our judgement was that
that, individually or in the aggregate, could performance materiality was 50% (FY2019:
reasonably be expected to influence the 50%) of our planning materiality, namely £640k
economic decisions of the users of the financial (FY2019: £579k). We set performance materiality
statements. Materiality provides a basis for at this percentage (which is the lowest in
determining the nature and extent of our the range) based on various considerations
audit procedures. including the past history of misstatements, the
effectiveness of the control environment and
We determined materiality for the group to be other factors affecting the entity and its financial
£1.28 million (FY2019: £1.16 million), which is 1% report.
(FY2019: 1%) of equity. We believe that equity
reflects the most useful measure for users of Audit work at component locations for the
the financial statements, given that the group is purpose of obtaining audit coverage over
loss making and operates in a regulated industry. significant financial statement accounts is
The increase in materiality is consistent with the undertaken based on a percentage of total
increase in equity during the year. performance materiality. The performance
materiality set for each component is based on
We determined materiality for the parent the relative scale and risk of the component to
Company to be £1.28 million (FY2019: £1.16 the group as a whole and our assessment of
million) which is 1% (FY2019: 1%) of equity. the risk of misstatement at that component. In
The materiality of the parent company is the current year, the performance materiality
based on equity as we consider this to be the allocated to components was £192k (FY2019:
most appropriate factor to the users of the £58k to £579k).
financial statements.
During the course of our audit, we reassessed Reporting threshold

initial materiality and made adjustments based on
the final equity after incorporating the result of An amount below which identified misstatements
the financial position of the group. are considered as being clearly trivial.
We agreed with the Audit Committee that we

Performance materiality would report to them all uncorrected audit
differences in excess of £64k (FY2019: £58k),
The application of materiality at the individual which is set at 5% of planning materiality, as well
account or balance level. It is set at an amount as differences below that threshold that, in our
to reduce to an appropriately low level the view, warranted reporting on qualitative grounds.
probability that the aggregate of uncorrected and
undetected misstatements exceeds materiality. We evaluate any uncorrected misstatements
against both the quantitative measures of
materiality discussed above and in light of other
relevant qualitative considerations in forming
our opinion.
Other information • the Strategic Report and the Directors’ report

have been prepared in accordance with
The other information comprises the information applicable legal requirements.
included in the annual report set out on pages
1 to 76 other than the financial statements and
our auditor’s report thereon. The directors are
responsible for the other information.
Matters on which we are
required to report by exception
Our opinion on the financial statements does
not cover the other information and, except to In the light of the knowledge and understanding
the extent otherwise explicitly stated in this of the group and the parent company and its
report, we do not express any form of assurance environment obtained in the course of the audit,
conclusion thereon. we have not identified material misstatements in
the Strategic Report or the Directors’ report.
In connection with our audit of the financial
statements, our responsibility is to read the other We have nothing to report in respect of the
information and, in doing so, consider whether following matters in relation to which the
the other information is materially inconsistent Companies Act 2006 requires us to report to you
with the financial statements or our knowledge if, in our opinion:
obtained in the audit or otherwise appears to
• adequate accounting records have not
be materially misstated. If we identify such
been kept by the parent company, or returns
material inconsistencies or apparent material
adequate for our audit have not been received
misstatements, we are required to determine
from branches not visited by us; or
whether there is a material misstatement in the
financial statements or a material misstatement • the parent company financial statements are
of the other information. If, based on the work not in agreement with the accounting records
we have performed, we conclude that there is a and returns; or
material misstatement of the other information,
• certain disclosures of directors’ remuneration
we are required to report that fact.
specified by law are not made; or
We have nothing to report in this regard. • we have not received all the information and
explanations we require for our audit
Opinions on other
matters prescribed by the
Companies Act 2006
In our opinion, based on the work undertaken in
the course of the audit:
• the information given in the Strategic Report
and the Directors’ report for the financial year
for which the financial statements are prepared
is consistent with the financial statements; and
Responsibilities of directors Explanation as to what extent

As explained more fully in the directors’
the audit was considered
responsibilities statement set out on page 77 the capable of detecting
directors are responsible for the preparation of
the financial statements and for being satisfied
irregularities, including fraud
that they give a true and fair view, and for such
The objectives of our audit, in respect to fraud,
internal control as the directors determine
are; to identify and assess the risks of material
is necessary to enable the preparation of
misstatement of the financial statements due
financial statements that are free from material
to fraud; to obtain sufficient appropriate audit
misstatement, whether due to fraud or error.
evidence regarding the assessed risks of material
misstatement due to fraud, through designing
In preparing the financial statements, the
and implementing appropriate responses; and to
directors are responsible for assessing the group
respond appropriately to fraud or suspected fraud
and parent company’s ability to continue as a
identified during the audit. However, the primary
going concern, disclosing, as applicable, matters
responsibility for the prevention and detection
related to going concern and using the going
of fraud rests with both those charged with
concern basis of accounting unless the directors
governance of the entity and management.
either intend to liquidate the group or the parent
company or to cease operations, or have no
Our approach was as follows:
realistic alternative but to do so.
• We obtained an understanding of the legal
and regulatory frameworks that are applicable
to the group and have a direct impact on the
Auditor’s responsibilities for the preparation of the financial statements. We
audit of the financial statements determined that the most important direct laws
and regulations related to the Bank related to
Our objectives are to obtain reasonable company law, tax legislation, and the financial
assurance about whether the financial reporting framework. Our considerations of
statements as a whole are free from material other laws and regulations that may have a
misstatement, whether due to fraud or error, and material effect on the financial statements
to issue an auditor’s report that includes our included permissions and supervisory
opinion. Reasonable assurance is a high level of requirements of the Prudential Regulation
assurance, but is not a guarantee that an audit Authority (‘PRA’) and the Financial Conduct
conducted in accordance with ISAs (UK) will Authority (‘FCA’).
always detect a material misstatement when it
• We understood how the group is complying
exists. Misstatements can arise from fraud or
with those frameworks by making enquiries
error and are considered material if, individually
of senior management, reviewing regulatory
or in the aggregate, they could reasonably
correspondence between the group and UK
be expected to influence the economic
regulatory bodies and reviewing minutes of the
decisions of users taken on the basis of these
Board and Risk Committee.
• We assessed the susceptibility of the group’s • The non-audit services prohibited by the FRC’s
financial statements to material misstatement, Ethical Standard were not provided to the
including how fraud might occur by considering group or the parent company and we remain
the controls that the group has established to independent of the group and the parent
address risks identified by the group, or that company in conducting the audit.
otherwise seek to prevent, deter or detect fraud.
• The audit opinion is consistent with the
• Based on this understanding we designed our additional report to the audit committee
audit procedures to identify non-compliance
with such laws and regulations. Our procedures
involved inquiries of senior management, legal
counsel, compliance and internal audit, review
Use of our report
of correspondence with regulatory bodies
This report is made solely to the company’s
and minutes of meetings of the Board and
members, as a body, in accordance with Chapter
Risk committees, involvement of conduct risk
3 of Part 16 of the Companies Act 2006. Our
specialists, and focused testing.
audit work has been undertaken so that we
• Based on our procedures performed on might state to the company’s members those
components, no instances of noncompliance matters we are required to state to them in an
with laws and regulations were identified. auditor’s report and for no other purpose. To the
fullest extent permitted by law, we do not accept
• The parent company operates in the
or assume responsibility to anyone other than
banking industry which is a highly regulated
the company and the company’s members as a
environment. As such the Senior Statutory
body, for our audit work, for this report, or for the
Auditor considered the experience and
opinions we have formed.
expertise of the engagement team to ensure
that the team had the appropriate competence
and capabilities, which included the use of
specialists where appropriate.
A further description of our responsibilities for

the audit of the financial statements is located
Javier Faiz
on the Financial Reporting Council’s website at
Senior statutory auditor
https://www.frc.org.uk/auditorsresponsibilities.
for and on behalf of Ernst & Young LLP,
This description forms part of our auditor’s report.
Statutory Auditor, London
29 July 2020
Other matters we are

Notes:
required to address 1. The maintenance and integrity of the Monzo Bank Limited
website is the responsibility of the directors; the work carried
• We were appointed by the Company on 28 out by the auditors does not involve consideration of these
matters and, accordingly, the auditors accept no responsibility
February 2017 to audit the financial statements for any changes that may have occurred to the financial
for the year ended 28 February 2017 and statements since they were initially presented on the website.
subsequent financial periods. 2. Legislation in the United Kingdom governing the preparation
and dissemination of financial statements may differ from
• The period of total uninterrupted legislation in other jurisdictions.
engagement including previous renewals and
reappointments is 4 years, covering the years
ended 28 February 2017 to 29 February 2020.
Statement of
comprehensive income
For the year ended
29 February 2020
Notes Group Company

Year ended Year ended Year ended Year ended
29 February 28 February 29 February 28 February
2020 2019 2020 2019
£’000 £’000 £’000 £’000
Interest income 2 25,018 4,918 25,018 4,918

Interest expense 2 (589) (0) (589) (0)
Net interest income 2 24,429 4,918 24,429 4,918
Fee and commission 3 40,085 13,231 40,082 13,231

income
Fee and commission 3 (10,681) (6,664) (10,681) (6,664)
expense
Net fee and 3 29,404 6,567 29,401 6,567
commission income
Credit loss expense 4 (20,254) (3,880) (20,254) (3,880)

on financial assets
Other operating income 5 2,079 1,553 3,488 1,553
Net operating income 35,658 9,158 37,064 9,158
Personnel expenses 6 (77,486) (25,654) (73,785) (25,610)

Depreciation & 14 (3,210) (799) (3,182) (799)
impairment expense
Other operating expense 8 (70,372) (33,421) (76,391) (33,465)
Total operating expense (151,068) (59,874) (153,358) (59,874)
Exchange differences (61) 0 (50) 0
through profit or loss
Loss before tax (115,471) (50,716) (116,344) (50,716)
Taxation 9 1,655 3,552 1,655 3,552
Loss for the year (113,816) (47,164) (114,689) (47,164)
Total comprehensive loss (113,816) (47,164) (114,689) (47,164)

for the year, net of tax
The results for the current and prior year are

derived entirely from continuing operations.
The Notes 1 to 33 form an integral part of these

Statement of
For the year ended

29 February 2020
Notes Group Company

2020 2019 2020 2019
£’000 £’000 £’000 £’000
Assets
Cash and balances at bank 10 1,373,722 549,847 1,373,302 549,831
Treasury investments 11 98,953 – 98,953 –
Loans and advances 12 123,913 16,054 123,913 16,054
to customers
Other assets 13 87,925 29,434 87,661 29,429
Property, plant and 14 21,253 2,278 21,089 2,257
equipment
Investment in subsidiaries 29 – – 443 78
Collateral held with 16 15,642 16,777 15,175 16,777
third parties
Total assets 1,721,408 614,390 1,720,536 614,426
Liabilities
Customer deposits 17 1,392,517 461,821 1,392,517 461,821
Other liabilities 18 199,887 36,899 199,883 36,935
Total liabilities 1,592,404 498,720 1,592,400 498,756
Equity
Called up share capital 28 0 – 0 0
Share premium account 311,139 198,146 311,139 198,146
Other reserves 17,301 3,164 17,306 3,164
Accumulated losses (199,436) (85,640) (200,309) (85,640)
Total equity 129,004 115,670 128,136 115,670
Total liabilities and equity 1,721,408 614,390 1,720,536 614,426
The Notes 1 to 33 form an integral part of these

financial statements. The financial statements on
pages 91 to 148 were approved and authorised
for issuance by the Board on 29 July 2020 and
signed on its behalf by:
Alwyn Jones
Director
29 July 2020
Statement of
changes in equity
For the year ended
29 February 2020
Group Share capital Share premium Other reserves Retained losses Total equity
£’000 £’000 £’000 £’000 £’000
Balance as at 28 February 2018 0 93,989 871 (38,681) 56,179
Shares issued 0 105,294 – – 105,294

Cost of issuance – (1,207) – – (1,207)
Share based payments reserve – – 2,511 – 2,511
Exercise of options 0 70 (218) 205 57
Losses for the year – – – (47,164) (47,164)
Balance as at 1 March 2019 0 198,146 3,164 (85,640) 115,670
Shares issued 0 113,629 – – 113,629

Cost of issuance – (658) – – (658)
Cumulative translation adjustment – – (5) – (5)
Share buyback – – (209) – (209)
Balance as at 29 February 2020 0 311,139 17,301 (199,436) 129,004
Company Share capital Share premium Other reserves Retained losses Total equity
£’000 £’000 £’000 £’000 £’000
Balance as at 28 February 2018 0 93,989 871 (38,681) 56,179
Shares issued – 105,294 – – 105,294

Cost of issuance – (1,207) – – (1,207)
Balance as at 1 March 2019 0 198,146 3,164 (85,640) 115,670
Shares issued 0 113,629 – – 113,629

Cost of issuance – (658) – – (658)
Share buyback – – (209) – (209)
Balance as at 29 February 2020 0 311,139 17,306 (200,309) 128,136
The share capital as at 29 February 2020 was £13

(FY2019: £12) which is shown as £nil (rounded to
£’000) in the above table. See Note 28 for further
detail. In the current year, we released £20k of
reserves related to options exercised from other
reserves into retained losses (FY2019: £205k).
Statement
For the year ended

29 February 2020
Notes Group Company

29 February 28 February 2019 29 February 28 February 2019
2020 2020
£'000 £'000 £'000 £'000
Cash flows from operating activities
Loss for the year (113,816) (47,164) (114,689) (47,164)
Adjustments for non-cash items:

Depreciation of property 14 3,210 799 3,182 799
plant and equipment
Share-based payments 6 14,365 2,511 14,294 2,511
Loss on disposals and write-offs 8 47 161 29 161
Loss on impairment of 8 – – 4,286 –
investment in subsidiaries
Interest on leases 2 491 – 491 –
Interest on treasury investments 2 (358) – (358) –
Changes in operating assets and liabilities:

Movement in loans and 12 (107,859) (15,893) (107,859) (15,893)
advances to customers
Movement in customer deposits 17 930,696 390,545 930,696 390,545
Movement in other assets 13 (61,060) (2,329) (60,801) (2,324)
(excluding R&D tax credit)
Movement in R&D tax credit receivable 13 2,569 1,242 2,569 1,242
Movement in collateral held 16 1,135 (3,245) 1,602 (3,245)
with third parties
Movement in other liabilities 18 145,270 24,534 145,230 24,570
excl. leases and provisions
Net cash from operating activities 814,690 351,161 818,672 351,202
Cash flows from investing activities

Purchase of treasury investments 11 (121,611) – (121,611) –
Interest received on treasury investments 11 41 – 41 –
Proceeds from sale and maturity 11 22,975 – 22,975 –
of financial instruments
Purchase of property, plant and equipment 14 (3,279) (2,415) (3,092) (2,394)
Proceeds on disposal of property, 14 – 8 – 8
plant and equipment
Investment in Subsidiaries – – (4,578) (78)
Cumulative translation adjustment (5) – – –
Net cash from investing activities (101,879) (2,407) (106,265) (2,464)
Cash flows from financing activities

Net proceeds from issuance 112,993 104,150 112,993 104,150
of ordinary shares
Payment of interest portion 15 (165) – (165) –
of lease liabilities
Payment of principal portion 15 (1,555) – (1,555) –
of lease liabilities
Purchase of treasury shares (209) – (209) –
Net cash from financing activities 111,064 104,150 111,064 104,150
Net increase in cash and cash equivalents 823,875 452,904 823,471 452,888
Cash and cash equivalents 549,847 96,943 549,831 96,943
at beginning of year
Cash and cash equivalents at end of year 1,373,722 549,847 1,373,302 549,831
Notes to
statements
For the year ended
29 February 2020
1. Significant accounting policies • Monzo’s reputation, customers and products

continue to allow us to grow our customer base
and be responsive to customer needs.
Reporting entities
• Management’s dedication to achieve our
business plan and taking difficult management
These financial statements are prepared for
actions if necessary.
Monzo Bank Limited and its subsidiaries (“the
Group”, “Monzo”, “We”, “Us”, “Our”). Monzo • The unprecedented support from the UK
Bank Limited (“the Company”, “the Bank”) is Government, regulators and central banks
a private limited company incorporated and around the world.
registered in England and Wales. The subsidiaries
• Our supportive investor base.
include Monzo Inc. and Monzo Support US Inc.
which were both incorporated in Delaware;
The Directors therefore expect the Group to
United States. We’ve presented individual
have sufficient financial resources to meet our
and consolidated financial statements for the
regulatory requirements for at least 12 months
Company and the Group.
and conclude it remains appropriate to continue
preparing our financial statements on a going
concern basis.
Basis of preparation
We’ve prepared the individual and consolidated

Summary of significant accounting policies
financial statements on a historical cost basis,
except for financial assets which are held at
Basis of consolidation
fair value or amortised cost, in accordance with
Monzo Bank Limited has two wholly-owned
International Financial Reporting Standards
subsidiaries, Monzo Inc. and Monzo Support US
(IFRS) as adopted by the European Union and
Inc., incorporated in Delaware; US. Monzo Bank
Companies Act 2006.
Limited has prepared consolidated accounts
under IFRS 10.
We present the financial statements in Sterling
which is the Company’s functional currency.
The consolidated financial statements include
Figures in tables are shown in thousands of
the results of the Company and its subsidiaries.
pounds sterling unless otherwise stated.
The subsidiaries are the entities over which
Monzo Bank Limited exercises control. Control
We present our statement of financial position
exists when the Company has the power to
in order of liquidity. We base this on our
govern the financial and operating policies of an
intention and ability to recover, or settle, the
entity, to vary the benefits it receives from the
majority of assets, or liabilities, in the financial
activities of the entity. In assessing control, the
statement line.
Group takes into consideration potential voting
rights that are currently exercisable.
As disclosed in the Directors’ Report, due to the
current challenging market conditions, there are
The financial results of subsidiaries are included
risks regarding the Group’s ability to achieve its
in the consolidated financial statements from
business plan and become profitable, without
the date control starts until the date that
further capital raises. These circumstances
control ends.
create material uncertainties, which may cast
doubt over the Group’s ability to continue as a
In preparing the consolidated financial
going concern.
statements intra-group balances, and
transactions, are eliminated. Unrealised losses
However the Directors maintain confidence
are eliminated in the same way as unrealised
in Monzo’s ability to execute its business
gains, but only to the extent that there is no
plan and raise capital if necessary due to the
evidence of impairment.
following reasons (see the Directors’ Report for
more detail):
In the Company accounts, the investment Fee and commission income/expense and other
in subsidiaries is held at historical cost less operating income
impairment. We assess impairment annually We’ve recognised fee and commission income
or as we become aware of any indicators and other operating income for the year
of impairment. according to the principles of IFRS 15 using the
five-step model:
Foreign exchange
1. Identify the contracts with customers.
The financial statements are presented in the
Group’s functional currency Sterling. 2. Identify the performance obligations in
the contract.
The Group applies IAS 21 The Effects of Changes
3. Determine the transaction price.
in Foreign Exchange Rates. Transactions in
foreign currencies are translated into Sterling 4. Allocate the transaction to the performance
at the exchange rate on the date of the obligations in the contract.
transaction. Foreign currency monetary balances
5. Recognise the revenue when (or as) the entity
are translated into Sterling at the period end
satisfies the performance obligation.
exchange rates. Exchange gains and losses on
such balances are taken to the Statement of
We only recognise fee and commission income
Comprehensive Income. Non-monetary foreign
and other operating income over the life of
currency balances are carried at historical
a contract when performance obligations
transaction date exchange rates.
are satisfied.
Interest income and expense calculated under
The key components of fee and commission
the effective interest rate (EIR) method
income are Interchange income, ATM fees and
According to IFRS 9, we recognise interest
partnership commission. Interchange income is
income in line with the effective interest rate.
recognised at the point that the transaction is
This represents the internal rate of return on the
cleared. The amount is based on the presentment
overdraft facilities, loans, treasury assets and
values which confirm that the performance
deposits with central banks, incorporating where
obligations have been met. ATM fees are
relevant, all interest, direct fees, commissions
recognised at the point at which the ATM
and charges that are integral to the yield. The
transaction takes place. Partnership commission
internal rate of return is calculated by reference
is earned for introducing our customers to
to the weighted average behavioural life of the
partners, revenue is recognised when we have
financial assets. The identified interest, fees and
fulfilled the requirements of the contract with
charges are deferred and amortised over the
the partner.
product life.
Financial instruments
An interest expense is recognised on balances
We apply IFRS 9 to recognise, classify, measure
within Monzo Plus accounts which is calculated
and de-recognise financial assets and liabilities,
under the effective interest rate.
and to record any impairment on those financial
assets. We also apply IFRS 7, disclosing
In June 2019, the Financial Conduct Authority
information about the significance of financial
(FCA) announced that it was introducing new
instruments and the nature and extent of risks
rules for banks that offer overdrafts to use an
arising from financial instruments, in both
Annual Percentage Rate (APR), to make overdraft
qualitative and quantitative terms.
rates more comparable for customers. We began
migrating customers from our fixed fee offering in
Recognition. We recognise financial assets
December 2019 and by April 2020 we had moved
and liabilities when Monzo becomes party to
all customers over to an APR based overdraft.
a contract. Financial instruments are initially
recognised at fair value, inclusive of directly
attributable transaction costs, and then adjusted
by the effective interest rate, to be recognised at
amortised cost.
The effective interest rate is the rate that exactly We only recognise the grant, during the period
discounts estimated future cash flows (including we incur the costs the grant is intended
fees that are an integral part of the effective to compensate, when we have reasonable
interest rate) through the expected life of the assurance we will meet the requirements of
asset or liability. the grant.
Financial instruments held at amortised cost No income related to grants was recognised
are also subject to expected credit loss (ECL) in the period. Government grants received
provisions, per IFRS 9. More detailed information are included within Deferred income in Other
on Monzo’s ECLs are provided in Note 23. Liabilities Note 18.
Classification and measurement. We classify Capitalisation of software development costs

financial assets on the basis of the business It is our policy to capitalise software development
model within which they are managed and their costs in line with IAS 38. We have not capitalised
contractual cash flows where they are solely any software development costs because we had
payments of principal and interest. not met the criteria of IAS 38 Intangible Assets by
the end of the year.
Our business model is to hold all financial assets
and liabilities to collect or pay contractual cash
flows, rather than to sell the instrument before New and updated accounting standards
maturity. The contractual terms of all financial adopted in the year
assets held by the Group give rise to cash flows
that are solely payments of principal and interest. IFRS 16 Leases
Therefore, all financial assets and liabilities IFRS 16 was issued in January 2016 and it
are held at amortised cost using the effective replaces IAS 17 Leases. IFRS 16 sets out the
interest rate method. principles for recognising, measuring, presenting
and disclosing leases. It requires lessees to
Contractually defined (regular way) purchases account for all leases under a single on-balance
and sales of financial assets are accounted for at sheet model, similar to the accounting for finance
trade date. leases under IAS 17.
The contractual maturity and fair value of Comparatives, including our CET1 ratio, have not
financial assets and liabilities held at amortised been restated as a result of applying IFRS 16.
cost are shown in Notes 20.
The Group adopted IFRS 16 on 1 March 2019
Derecognition. We derecognise a financial asset, using the modified retrospective approach.
or a part of it, from the balance sheet when the We applied the standard retrospectively and
contractual rights to cash flows from the asset recognised the cumulative effect of applying the
have either expired, transferred or have been standard at the date of adoption. The prior-year
sold, along with substantially all the risks and figures were not adjusted. The impact of the
rewards of the asset. initial application is shown in the table below. We
stated in our FY2019 Financial Statements that
Financial liabilities are derecognised when they we would apply the full retrospective approach
are settled, have expired or been extinguished. to the standard. This was too onerous and the
modified retrospective approach was applied.
Government grants
Government grants are recognised only when we At the start date of a lease, we recognise a lease
have reasonable assurance that we will comply liability and a right-of-use asset. We have to
with any conditions attached to the grant, and separately recognise the interest expense on the
the grant will be received. lease liability and the depreciation expense on
the right-of-use asset.
Grants are recognised as income, on a straight-
line basis, in the same period the related costs
are incurred.
We have made use of the two recognition

exemptions for lessees, leases of ’low-value’
assets and short-term leases which have a lease
term of 12 months or less. We have applied a
practical expedient to exclude initial direct costs
from the measurement of right-of-use assets at
the date of initial application.
Monzo has lease contracts for various offices and

data warehouses. Before the adoption of IFRS 16
we did not have any finance leases, all existing
leases were operating leases.
A reconciliation of the operating lease

commitments disclosed in the prior year financial
statements to the leases capitalised on transition
to IFRS 16 is shown below.
£’000
Operating lease 2,924
commitments as at
28 February 2019
Weighted average 8.09%
incremental
borrowing rate as
at 1 March 2019
Discounted operating 2,623
lease commitments
as at 1 March 2019
Lease liabilities as 2,623
at 1 March 2019
On adoption, we recognised right-of-use assets

and lease liabilities for all lease contracts,
except for leases with short-term contracts or
for low-value assets. The right-of-use assets
were recognised based on an amount equal to
the lease liabilities. This was adjusted for any
accrued lease payments previously recognised,
and the present value of costs of restoring the
asset to the state required by the terms and
conditions of the lease, where these could
be reliably measured. Lease liabilities were
recognised based on the present value of the
remaining lease payments, discounted using a
proxy for the incremental borrowing rate at the
date of initial application.
Group and Company

Closing Recognition Adjustment Balances
balances of right-of- for lease as at 1st
related to use asset and payments March 2019
leases as at lease liability accrued at
28th February 28th February
2019 2019
£’000 £’000 £’000 £’000
Assets
Property, plant and equipment – 2,623 (346) 2,277
Total assets – 2,623 (346) 2,277
Liabilities
Accruals 346 – (346) –
Lease liabilities – 2,623 – 2,623
Other liabilities 346 2,623 (346) 2,623
Total liabilities 346 2,623 (346) 2,623
Equity
Retained earnings (346) – – (346)
Total equity (346) – – (346)
Total liabilities and equity – 2,623 (346) 2,277
Critical accounting estimates, judgments Going concern

and assumptions The Bank’s Directors have assessed its ability
to continue as a going concern and are satisfied
Preparing the financial statements means using that it has the resources to continue for the
accounting judgements and assumptions. These foreseeable future. But, there is a risk the Group
assumptions and judgements are continually won’t be able to execute its business plan, which
evaluated based on historical experience and could impact its ability to generate a profit or
other factors, including expectations of future raise enough capital to meet future regulatory
events that are believed to be reasonable capital requirements.
under the circumstances. In the future, actual
experience may differ from these estimates Because of these obstacles, the Directors
and assumptions. recognise there are material uncertainties which
may challenge the Group’s ability to continue as a
Management considers that the accounting going concern.
estimates relating to the issues below are the
most material to the financial statements: The Directors do however remain confident in
Monzo’s ability to achieve its business plan and
raise capital if necessary. For those reasons,
we’ve continued to prepare the financial
statements on a going concern basis. See the
Directors’ Report for more detail.
Revenue recognition Tax

The Group recognises revenue which requires We measure current income tax assets and
estimates and judgements regarding their timing, liabilities for the current period at the amount
the completion of performance obligations we expect to recover or pay to the taxation
and when we have reasonable assurance all authorities. They involve a degree of estimation
contractual conditions are met. We recognise and judgement. To compute the amounts, we use
performance incentives from our payment the tax rates and tax laws which are enacted or
scheme providers, which require estimates substantively enacted at the reporting date when
for transaction volumes and assessment of the Company generates taxable income.
performance obligations. These are however
confirmed by the provider after recognition. We periodically evaluate the positions we take
in terms of tax returns where the regulations
Recognition of research & development grants are subject to interpretation, and establish
We claim research and development grants provisions where we need to. We base tax assets
which require estimates and assumptions on the and liabilities relating to open and judgemental
time our colleagues spend on certain projects. matters, including those related to the R&D
We use an external advisor to help assess reclaim, on our assessment of the most likely
our claim. outcome based on information available and
probability of potential challenge.
Fair valuing stock based compensation (Note 30)
As an unlisted company granting share options The recognition of Provisions and Contingent
to our colleagues, several estimates and liabilities
assumptions are made to calculate the quarterly Monzo operates in a highly regulated and
options price. The most material estimates relate litigious environment which exposes us to
to the current share price of Monzo and the significant operational risks. We can therefore be
volatility inputs to our Black-Scholes model. A 5% involved in litigation, arbitration and regulatory
increase in the share price assumption leads to investigations, both in the UK and other countries
an additional £0.5m charge in FY2020. Several we operate.
external sources are used to assess comparable
transactions which may not fully represent At any point in time we may have a number of
our Group. matters being reviewed to assess if we have an
obligation that will result in economic outflows
The recognition of expected credit losses from the Group. If we can reliably measure any
(Note 23) outflows that are considered probable, we
The calculation of expected credit losses is recognise a provision. If an outflow is considered
complex and involves the use of judgement, possible we would recognise a contingent
specifically regarding the amount and timing of liability. However, if we believe disclosing details
future cash flows and also determining significant on individual cases would prejudice their
increases in credit risk. Our estimates are driven outcomes, we do not disclose detailed, case-
by a number of factors including: specific information in our financial statements.
See Notes 24 and 26 for further detail.
• macro-economic scenarios and their
probability weightings;
Impairment
• the probability of default; When we assess assets for impairment, several
methods can be used to calculate the fair value,
• the amount of loss if default occurs;
value in use or the recoverable amount of those
• our staging criteria; and assets. All of these methods use judgements and
estimates to calculate expected values which are
• our assessment of significant increases in
often subjective and based on information at the
credit risk.
balance sheet date. These calculations regularly
include cashflow projections, assumptions on
Sensitivity analysis to material inputs is detailed
future economic conditions, discount rates and
in Note 23.
estimates on the value assets could be sold to a
third party. See Note 29 for further details.
2. Interest income and expense

calculated under the effective
interest rate (EIR) method
Group Company
2020 2019 2020 2019
£’000 £’000 £’000 £’000
Interest income
Cash and balances 6,173 1,708 6,173 1,708
at central banks
Loans and advances 18,444 3,167 18,444 3,167
to customers
Treasury assets 358 0 358 0
Other interest income 43 43 43 43
Total 25,018 4,918 25,018 4,918
Interest expense
Interest expense on (98) 0 (98) 0
customer deposits
Interest expense on leases (491) 0 (491) 0
Net interest income 24,429 4,918 24,429 4,918
Interest expense is charged on the outstanding

balance of lease liabilities. The interest rate
charged is the proxy for the incremental
borrowing rate used to calculate the lease liability
at the inception of the lease.
3. Net fees and commission
Group Company
2020 2019 2020 2019
£’000 £’000 £’000 £’000
Fee and commission income
Interchange income 32,621 10,555 32,618 10,555
Banking services income 6,059 2,539 6,059 2,539
Partnership commission 696 85 696 85
Partnership commission 709 52 709 52
from trust and other
fiduciary activities
Total 40,085 13,231 40,082 13,231
Fee and commission expense

Interchange expense (3,198) (4,072) (3,198) (4,072)
Banking services expense (7,483) (2,592) (7,483) (2,592)
Net fees and commission 29,404 6,567 29,401 6,567
The reported fees and commissions are those

which don’t contain an interest element and
4. Credit loss expense
don’t form part of any effective interest rate on financial assets
calculations. The interchange expense relating to
ATM withdrawals of £6.1m (FY2019: £2.5m) was The Bank currently provides overdraft facilities
previously shown as part of Interchange expense. and unsecured loans to individuals in order to
We have updated this in the current year to be generate a return through overdraft fees and
included within Banking services expense and interest income. Lending creates credit risk as
restated the FY2019 comparative. borrowers might fail to pay the fees, interest
or outstanding balance. Credit risk is the risk
of financial loss when customers or other
counterparties fail to settle their contractual
obligations to the Bank or fail to perform their
obligations in a timely manner. This is usually
caused by adverse changes in macro-economic
factors or a change in an individual customer’s
behaviour and circumstances.
The maximum exposure to credit risk includes

the total committed overdrafts (Note 23),
overdrawn balances and loans on the balance
sheet (Note 12). As a material risk to the Bank,
there is significant management focus on setting
credit risk appetite and embedding appropriate
risk mitigation.
Group Company
2020 2019 2020 2019
£’000 £’000 £’000 £’000
Overdrafts and overdrawn 18,053 3,084 18,053 3,084

balances and undrawn
commitments
Loans 2,974 23 2,974 23
Credit loss expense on loans 21,027 3,107 21,027 3,107
and advances to customers
Receivables (773) 773 (773) 773
Total credit impairment charges 20,254 3,880 20,254 3,880
For more information on the credit loss expense In the prior year we held a credit loss expense
in respect of loans, overdrafts, overdrawn against an amount receivable under the prepaid
balances and receivables see Note 23. card scheme. In the current year the outstanding
balance was settled, and the credit loss expense
unwound, further details can be found in Note 23.
5. Other operating income
Group Company
2020 2019 2020 2019
£’000 £’000 £’000 £’000
Payment network providers 2,079 1,553 2,079 1,553

Intercompany income – – 1,409 –
Total other operating income 2,079 1,553 3,488 1,553

Other operating income includes income from 6. Personnel expenses

contracts with a payment network provider. In the
year we recognised an additional £1.7m (2019: Pensions
£0.9m) of income as a result of a contractual We participate in single defined contribution
bonus related to an agreement signed in the prior pension schemes in the UK and the US. The
financial year. The bonus income was recognised contribution payable to a defined contribution
on the basis that the minimum level of cross- plan is a fixed percentage of the person’s salary
border transaction volumes, as stipulated in the each month which is the same for all colleagues
agreement, was realised. of each entity, unless they have opted out. This
is recorded as an expense under personnel
expenses. Unpaid contributions are recorded as
a liability.
We don’t operate any defined benefit

pension plans.
Employee benefit expenses are made up of the

costs summarised in the table below.
Group Company
2020 2019 2020 2019
£’000 £’000 £’000 £’000
Salaries 54,466 19,376 51,618 19,346
Social security contributions 5,603 2,680 5,284 2,676
Contributions to defined 1,718 761 1,712 760
contribution plans
Share-based payments 14,365 2,511 14,294 2,511
Other personnel expenses 1,334 326 877 317
77,486 25,654 73,785 25,610
The increase in people costs to £77.5m (FY2019:

£25.7m) reflects the additional people hired
during the year to support the operational
running of the Group.
The average number of employees of the Group

during the period was 1,128 (FY2019: 437),
479 (FY2019: 217) of these were employed in
Management, Operations and Administration and
649 (FY2019: 220) were employed in Customer
Operations (COps).
7. Directors’ remunerations
Group Company
2020 2019 2020 2019
£’000 £’000 £’000 £’000
Total Directors’ emoluments
Salaries 724 464 724 464
Share-based payments 265 – 265 –
Contributions to defined 12 4 12 4
contribution plans
1,001 468 1,001 468
Highest paid Director

Salaries 173 117 173 117
Share-based payments 265 – 265 –
Contributions to defined 8 – 8 –
contribution plans
446 117 446 117
As at 29 February 2020 there were no loans

outstanding to Directors (FY2019: £nil) and
there were no loans made to Directors during the
period (FY2019: £nil).
One Director was granted share options

in the year. There were no share options
exercised by Directors in the year and there
were no shares given to Directors under any
compensation schemes.
8. Other operating expenses
Group Company
2020 2019 2020 2019
£’000 £’000 £’000 £’000
Current account 25,406 14,190 25,199 14,190

operating costs
Technology costs 10,257 4,389 10,168 4,389
Marketing 16,837 2,730 16,770 2,730
Administrative expenses 6,397 2,974 6,279 2,972
Premise and office costs 4,179 4,695 3,691 4,680
Legal and professional fees 5,686 3,345 4,894 3,330
Accountancy and audit fees 1,107 423 1,107 423
Product development 421 260 391 260
Write-offs 47 – 29 –
Prepaid card scheme 35 415 23 415
Intercompany expenses – – 3,554 76
Impairment of investment – – 4,286 –
in subsidiaries
70,372 33,421 76,391 33,465
Current account operating costs include the

cost of payment schemes, card production, card
distribution and customer on-boarding.
Technology costs include charges for servers,

cloud services and software.
9. Taxation
Current taxation
We measure current income tax assets and

liabilities for the current period at the amount
we expect to recover or pay to the taxation
authorities. They involve a degree of estimation
and judgement. To compute the amounts, we use
the tax rates and tax laws which are enacted or
substantively enacted at the reporting date when
the Company generates taxable income.
Management periodically evaluates the

positions we take in terms of tax returns where
the regulations are subject to interpretation,
and establishes provisions where we need to.
We base tax assets and liabilities relating to
open and judgemental matters, including those
related to the R&D reclaim, on our assessment
of the most likely outcome based on information
available and probability of potential challenge.
We engage constructively and transparently with
the tax authorities with a view to resolving any
uncertain tax matters.
Deferred tax
No deferred tax assets have been recognised as

at 29 February 2020 (FY2019: £nil).
We recognise deferred tax on temporary

differences arising between the tax bases of
assets and liabilities and their carrying amounts
in the financial statements. We determine
deferred income tax based on tax rates and
laws which have been enacted, or substantively
enacted, by the reporting date and are expected
to apply when the asset is realised or the
deferred income tax liability is settled.
We recognise deferred income tax assets only to

the extent that it’s probable that future taxable
profits will be available against which we can use
the temporary differences.
Group Company
2020 2019 2020 2019
£’000 £’000 £’000 £’000
Current tax
UK corporation tax credit 1,968 1,858 1,968 1,858
on loss for the period
Adjustment in respect (313) 1,694 (313) 1,694
of prior years
Total for the year 1,655 3,552 1,655 3,552

2020 2019 2020 2019
£’000 £’000 £’000 £’000
Current tax
Loss on ordinary 115,471 50,716 116,344 50,716
activities before tax
Standard rate of corporation tax 19% 19% 19% 19%
Expected tax credit 21,940 9,636 22,106 9,636
Effects of:
Expenses not deductible for tax (272) (209) (1,086) (209)
Share options exercised 34 697 34 697
Additional deduction 1,457 1,376 1,457 1,376
for R&D expenditure
Impact of surrendering (611) (576) (611) (576)
losses at lower rate
Adjustment to tax charge (313) 1,694 (313) 1,694
in respect of prior period
Impact of differences in 201 – – –
overseas tax rates
Other (4) – – –
Deferred tax asset (20,777) (9,066) (19,932) (9,066)
not recognised
Total UK corporate tax 1,655 3,552 1,655 3,552
credit for the period
The Group’s profits / losses are taxed at different We have not recognised a deferred tax asset
rates depending on the country they are made. for tax losses carried forward in the UK totalling
The Group is currently taxed in the UK at a rate £160m (2019: £68.8m) and the US totalling
of 19% (2019:19%) and in the US at a rate of $2.2m (2019: $0.1m) as there isn’t enough
24.95% (2019: 24.95%) evidence of their recoverability.
A deferred tax asset has not been recognised on

the following items:
Group Company
2020 2019 2020 2019
£’000 £’000 £’000 £’000
Deferred tax
Unused tax losses 27,741 11,704 27,278 11,704
Fixed asset timing differences 176 116 176 116
Share based payments 24,646 6,686 24,628 6,686
Other deductible 435 27 69 27
temporary differences
52,998 18,533 52,151 18,533
Our unrecognised deferred tax is a mixture of

unrecognised deferred tax assets relating to the
10. Cash and balances at banks
UK and applying a rate of 17% (2019: 17%) and US
Cash and balances are held on demand, except
at the rate of 24.95% (2019: 24.95%)
for amounts held as collateral at central banks.
We show them in accordance with the regulatory
license held by the institution.
Factors affecting future tax charge
The Group didn’t hold any cash equivalents in
The UK Government has announced they will
the year.
keep the UK corporation tax rate at 19% for the
20/21 tax year. This became law on 17th March
Cash and balances at banks are recognised
2020. As this was after our financial year-end,
initially at fair value and then at amortised cost.
deferred tax balances are still shown at the rate
of 17%.
Group Company
2020 2019 2020 2019
£’000 £’000 £’000 £’000
Cash and balances held with:
Central banks 1,316,459 510,314 1,316,459 510,314
Other banks 35,277 28,936 34,895 28,920
E-money institutions 627 597 589 597
Reserves with central banks 21,359 10,000 21,359 10,000
1,373,722 549,847 1,373,302 549,831
The reserves with central banks are encumbered No impairment is held against senior UK
as they are held at central banks as cash government debt or central bank deposits
collateral and not available for use in day-to- as the probability of default is negligible
day operations. This is required for the Bank under any range of reasonable, probability-
to be a direct settling participant of the Faster weighted scenarios.
Payments Service.
The interest earned on our treasury investments
Overnight deposits accrue compounding interest is included in Note 2.
daily, however the interest is only made available
to us at each rate setting meeting. For further information on the fair value and
contractual maturity of our treasury investments,
see Notes 20.
11. Treasury investments
Treasury assets consist of short term UK
Government Treasury Bills and are first measured
at fair value and then at amortised cost. It is
our business model to hold the investments to
maturity and the cash flows of the investments
are solely payments of principal and interest.
Group Company
2020 2019 2020 2019
£’000 £’000 £’000 £’000
Treasury investments
at amortised cost
UK Government debt 98,953 – 98,953 –
98,953 – 98,953 –
The interest earned on our treasury investments

is included in Note 2.
12. Loans and advances
to customers
For further information on the fair value and
contractual maturity of our treasury investments, Loans and advances to customers consist of
see Notes 20. unsecured loans, approved overdrafts and
overdrawn balances (unarranged overdrafts). We
measure them under IFRS 9, first at fair value and
then at amortised cost less ECL.
The table below shows the gross loans and

advances to customers, the Expected Credit Loss
on those balances and the net carrying value. The
figures are split out by the type of balance the
customer has.
Group Company
2020 2019 2020 2019
£'000 £'000 £'000 £'000
Gross Loans and Advances
to Customers
Overdrafts and 72,980 18,570 72,980 18,570
overdrawn balances
Loans 70,929 603 70,929 603
Gross Loans and Advances 143,909 19,173 143,909 19,173
to Customers
Credit loss provision

Overdrafts and (17,014) (3,096) (17,014) (3,096)
overdrawn balances
Loans (2,982) (23) (2,982) (23)
Credit loss provision (19,996) (3,119) (19,996) (3,119)
Loans and Advances to

Customers (net of provisions)
Overdrafts and 55,966 15,474 55,966 15,474
overdrawn balances
Loans 67,947 580 67,947 580
Loans and Advances 123,913 16,054 123,913 16,054
to Customers
Analysis of Gross Loans and

Advances to Customers
Due within one year 95,020 19,173 95,020 19,173
Due in more than one year 48,889 – 48,889 –
Loans and Advances 143,909 19,173 143,909 19,173
to Customers
Loans and advances to customers consist of

approved overdrafts provided to customers of
£71.5m (2019: £18.5m), overdrawn balances on
current accounts of £1.5m (2019: £0.1m), and
loans of £70.9m (2019: £0.6m). See Note 23
for more information on the impairment charge
in respect of overdraft, overdrawn balances,
and loans.
13. Other assets • Inventory. Inventories are valued at the lower

of cost and net realisable value and represent
• Receivables. We recognise receivables first bank cards held for sale in the ordinary course
at fair value and then at amortised cost. We of business.
recognise expected credit losses under IFRS
• Prepayments. We recognise prepayments
9 against certain receivables. The Group’s
where we have purchased goods or services
expected credit losses for the year are shown
but we have not yet used those goods or
in Note 4.
services.
• Accrued income. We recognise accrued
income where we have earned income under
our contracts with partners but have not yet
invoiced those partners or received the cash
due to us.
Group Company
2020 2019 2020 2019
£’000 £’000 £’000 £’000
Other assets
Receivables in respect 67,583 11,020 67,575 11,020
of payments schemes
Accrued income 378 839 378 839
Inventory 2,241 – 2,241 –
Prepayments 8,856 3,207 8,732 3,202
Receivable in respect of – 3,313 – 3,313
prepaid card program
Other receivables 691 4,652 663 4,652
Intercompany accounts – – – –
receivable
VAT receivable 142 143 142 143
R&D tax reclaim 3,509 6,078 3,509 6,078
Deposits 4,525 182 4,421 182
87,925 29,434 87,661 29,429
Included within other assets are £73.2m (FY2019: The recognised R&D asset is considered a non-
£19.8m) of financial assets and £14.7m (FY2019: financial asset and is based on analysis of eligible
£9.6m) of non-financial assets. The credit costs. Our submitted R&D reclaim of £4.2m
quality of the financial assets is considered for FY2018 was paid in full. Our submitted R&D
low risk, £61.0m of this balance settled on 2nd reclaim of £1.5m for the 2019 year end has also
March 2020. been repaid in full subsequent to the financial
year end. Our estimated R&D claim of £2.0m for
Receivables in respect of the prepaid card FY2020 has been recognised in full.
program are shown net of Expected Credit Losses
as disclosed in Note 23.
14. Property, plant

and equipment
Items of property, plant and equipment are stated
at cost less accumulated depreciation and
impairment. Historical cost includes expenditure
that is directly attributable to the cost of
the assets.
We recognise right-of-use assets at the

commencement date of the lease. The Group has
lease contracts for various offices and premises
and IT infrastructure, see Note 15. These were
recognised on adoption of IFRS16 in FY2020 and
so there are no comparatives shown for FY2019.
Fixtures and fittings, which include office fit-out
costs, are recognised on a straight-line basis
over the life of the lease.
We provide depreciation on all property, plant and

equipment, and calculate it using the straight-
line method to allocate the cost, net of residual
values, over the estimated useful lives, as follows:
• Office and IT Equipment – 3 years.
• Fixtures and fittings – 3–5 years.
• Offices and premises – 2–5 years.
• IT infrastructure* – 3 years.
*Monzo has ‘evergreen’ lease contracts which

continue until either Monzo or the lessor cancel
the contract. We consider the most likely term
for these leases is the same as for other IT
equipment, and have therefore calculated a right-
of-use asset and lease liability on this basis.
Group Property, plant and equipment Right-of-use assets

Fixtures and Office and IT Offices and IT infrastructure Total
fittings equipment premises
£’000 £’000 £’000 £’000 £’000
Cost
As at 1 March 2019 936 2,241 2,244 33 5,454
Additions 1,036 1,882 16,915 125 19,958
Write-offs (58) (8) – – (66)
As at 29 February 2020 1,914 4,115 19,159 158 25,346
Depreciation
As at 1 March 2019 261 638 – – 899
Charge for the period 593 1,065 1,501 51 3,210
Depreciation on assets written off (11) (5) – – (16)
As at 29 February 2020 843 1,698 1,501 51 4,093
Net book value as at 1,071 2,417 17,658 107 21,253

29 February 2020
Cost
As at 1 March 2018 175 931 – – 1,106
Additions 937 1,478 – – 2,415
Disposals – (44) – – (44)
Write-offs (176) (124) – – (300)
As at 28 February 2019 936 2,241 – – 3,177
Depreciation
As at 1 March 2018 47 236 – – 283
Charge for the period 281 518 – – 799
Depreciation on assets disposed – (35) – – (35)
As at 28 February 2019 261 638 – – 899
Net book value as at 675 1,603 – – 2,278

28 February 2019
Company Property, plant and equipment Right-of-use assets

Fixtures and Office and IT Offices and IT infrastructure Total
fittings equipment premises
£'000 £'000 £'000 £'000 £'000
Cost
As at 1 March 2019 915 2,241 2,244 33 5,433
Additions 1,036 1,694 16,915 125 19,770
Write-offs (39) (8) – – (47)
As at 29 February 2020 1,912 3,927 19,159 158 25,156
Depreciation:
As at 1 March 2019 260 639 – – 899
Charge for the period 592 1,038 1,501 51 3,182
Depreciation on assets disposed – – – – –
As at 29 February 2020 843 1,673 1,501 51 4,068
Net book value as at 1,069 2,254 17,658 107 21,089

29 February 2020
Cost:
As at 1 March 2018 175 931 – – 1,106
Additions 916 1,478 – – 2,394
Disposals – (44) – – (44)
Write-offs (176) (124) – – (300)
As at 28 February 2019 915 2,241 – – 3,156
Depreciation:
As at 1 March 2018 47 236 – – 283
Charge for the period 281 518 – – 799
Depreciation on assets disposed – (35) – – (35)
As at 28 February 2019 261 638 – – 899
Net book value as at 654 1,603 – – 2,257

28 February 2019
We apply a single recognition and measurement

15. Leases approach for all leases, except for short-
term leases and leases of low-value assets.
Lease liabilities are recognised within Other
We recognise lease liabilities to make lease
Liabilities, further information is included in
payments and right-of-use assets representing
Note 18.
the right to use the underlying assets.
At contract inception we assess whether a
contract is, or contains, a lease. That is, if the
contract gives us the right to control the use
of an identified asset for a period of time in
exchange for payment.
Lease liabilities Estimating the incremental borrowing rate

At the commencement date of the lease, we We cannot readily determine the interest rates
recognise lease liabilities measured at the implicit in these leases or our incremental
present value of lease payments to be made over borrowing rate (IBR) to measure lease liabilities.
the lease term. The lease payments include fixed The IBR is the rate of interest that entities within
payments less any lease incentives receivable. the Group would have to pay to borrow over a
None of the leases have variable lease payments. similar term, for a similar security, to fund an
Where leases include extension options, and asset of similar value in a comparable economic
these options are reasonably certain to be environment. The IBR therefore reflects what we
exercised, the option to extend is included in the ‘would have to pay’, which requires estimation as
lease term. no internal observable rates are available as we
have not entered into any financing transactions.
In calculating the present value of lease
payments, we use a proxy for our incremental We have estimated our IBR using external
borrowing rate at the lease commencement observable inputs (such as the borrowing rates
date because neither the interest rate implicit of peers and the nominal spot curves at the
in the lease or an incremental borrowing rate beginning of the lease to adjust for the term of
is available. After the commencement date, the the lease) when available to calculate a proxy for
amount of lease liabilities is increased to reflect the IBR specific to each lease.
the accumulation of interest and reduced for the
lease payments made. Short-term leases and leases of low-value assets
We apply the short-term lease recognition
exemption to leases with terms of 12 months or
less, at the commencement date, and that do
not contain a purchase option. We also apply the
‘lease of low-value assets’ recognition exemption
to new leases of assets, worth less than £5k.
Lease payments on short-term leases and leases
of low value assets are recognised as an expense
on a straight-line basis over the lease term.
The following are the amounts relating to leases

that have been recognised in profit or loss:
Group Company
2020 2019 2020 2019
£’000 £’000 £’000 £’000
Amounts recognised
in profit or loss
Depreciation expense on 1,552 – 1,552 –
right-of-use assets
Interest expense on leases 446 – 446 –
Expense relating to short- 432 – – –
term leases included in
operating expenses
Expense relating to low- 9 – 9 –
value leases included in
operating expenses
2,439 – 2,007 –
The Group had total cash outflows for leases, not We have committed to a further lease which has
including short-term or low-value, of £1.7m in not yet commenced. We expect this to result
FY2020. The Group also had non-cash additions in a further £7.0m right-of-use asset being
to right-of-use assets and lease liabilities of capitalised and a further £6.7m of lease liabilities.
£15.7m in FY2020 (FY2019: n/a). These will be recognised when the lease
is signed.
Commitments for minimum lease payments in

relation to non-cancellable operating leases are
payable as follows:
Group
Year ended Year ended
29 February 28 February
2020 2019
£’000 £’000
Within one year 4,140 1,307

Later than one year but not later than five years 15,882 1,275
Later than five years 1,099 –
Total 21,121 2,582
16. Collateral held

with third parties
Group Company
2020 2019 2020 2019
£’000 £’000 £’000 £’000
Held as part of lease 290 1,878 290 1,878

agreements
Held with payment 15,352 14,899 14,885 14,899
network providers
15,642 16,777 15,175 16,777
The Bank holds customer deposits at the end of

17. Customer deposits the year of £1,392.5m (2019: £461.8m) which are
held on demand.
We recognise customer deposit liabilities firstly
at fair value and then at amortised cost.
18. Other liabilities Deferred income. This represents amounts

charged to, or received from, customers and
Customer funds in transit. These amounts amounts received as part of Government grants,
represent cash balances which are due to where we have not yet met the criteria to
be settled with third party payment network recognise the amounts as income.
providers or third party savings accounts.
The settlement cycle is dependent on the Leases liabilities. For information on the
counterparty, but is usually within a few recognition of lease liabilities please see Note
working days following the inception of the 15. For an analysis of the contractual maturity of
transaction. Upon settlement, these amounts lease payments, see Note 20.
are derecognised from the balance sheet. We
recognise these amounts at amortised cost. Other. These amounts represent liabilities for
goods and services provided to Monzo before
Provisions. We recognise provisions under IAS 37 the end of the financial period which are unpaid.
where we have present obligations arising from The amounts are unsecured and paid in line with
past events and the payment of the obligation the specific terms agreed with the counterparty.
can be reliably estimated and is probable. The We recognise them first at fair value and then at
Group recognised provisions for the cost of amortised cost.
returning leased office space to its original
condition at the end of the lease.
Group Company
2020 2019 2020 2019
£’000 £’000 £’000 £’000
Other liabilities
Customer funds in transit 166,421 27,958 166,421 27,958
Accounts payable and 6,298 2,041 6,082 2,031
other creditors
Intercompany accounts payable – – 355 58
Accruals 6,285 4,075 6,142 4,063
Other taxes and social 2,405 1,080 2,405 1,080
security costs
Deferred income 414 1,745 414 1,745
Lease liabilities 17,023 – 17,023 –
Provisions 1,041 – 1,041 –
199,887 36,899 199,883 36,935
Included within other liabilities are £196.1m

(FY2019: £30.0m) of financial liabilities
and £3.8m (FY2019: £6.9m) of non-
financial liabilities.
19. Fair value of financial assets

and liabilities recognised
at amortised cost
Fair value hierarchy
The fair value of financial assets and liabilities

is the price that would be received or paid
to transfer an asset or liability in an orderly
transaction between market participants at the
measurement date.
IFRS 13 has sought to make measurements at

fair value more consistent and comparable by
categorising fair value according to the hierarchy
of the inputs used to measure them. These
categorises from Level 1 to Level 3 are based on
the degree to which the fair value is observable.
Level 1 – Quoted prices in active markets for

identical assets or liabilities which the Group can
access at the date of measurement.
Level 2 – Inputs other than quoted market prices

included in Level 1 that are observable either
directly or indirectly.
Level 3 – Inputs that are not based on observable

market data.
The following table summarises the fair values

of financial assets and liabilities by the level of
inputs that are not reported on the balance sheet
at their fair value but are instead reported using
amortised cost.
Level 1 Level 2 Level 3 Total fair value Total carrying

value
£'000 £'000 £'000 £'000 £'000
As at 29 February 2020
Financial assets
Cash and balances at bank – 1,373,722 – 1,373,722 1,373,722
Loans and advances to customers – – 120,436 120,436 123,913
Treasury investments 98,960 – – 98,960 98,953
Other assets – 73,192 – 73,192 73,192
Collateral held with third parties – 15,642 – 15,642 15,642
Total financial assets 98,960 1,462,556 120,436 1,681,952 1,685,422
Financial liabilities
Customer deposits – 1,392,517 – 1,392,517 1,392,517
Other liabilities – 179,078 – 179,078 179,078
Total financial liabilities – 1,571,595 – 1,571,595 1,571,595
Net asset position 98,960 (109,039) 120,436 110,357 113,827
Financial assets
Cash and balances at bank – 549,847 – 549,847 549,847
Loans and advances to customers – – 15,766 15,766 16,054
Treasury investments – – – – –
Other assets – 16,511 3,313 19,824 19,824
Collateral held with third parties – 16,777 16,777 16,777
Total financial assets – 583,135 19,079 602,214 602,502
Customer deposits – 461,822 – 461,822 461,822
Other liabilities – 29,999 – 29,999 29,999
Total financial liabilities – 491,821 – 491,821 491,821
Net asset position – 91,314 19,079 110,393 110,681
Basis of valuation Customer deposits – Fair value of deposit

liabilities held on demand are deemed to
Cash and balances at banks – Fair value approximate the carrying value.
approximates carrying value because cash and
balances at banks have minimal credit risk and Other assets and liabilities – Fair value of other
are short term in nature, other than amounts held assets and liabilities are deemed approximate to
as collateral with central banks. the carrying value.
Loans and advances to customers – The Group

provides overdrafts and loans. The fair value of
the overdrafts and loans have been determined
through discounting the gross carrying value to
present value, using market interest rates, less
Expected Credit Losses.
Treasury investments – Fair value of investments

with an active market are taken from the market
price available at year end.
20. Liquidity risk management Contractual maturity of financial assets

and liabilities
Liquidity risk is the risk that the Company fails
to meet its obligations as they fall due or can
only do so at exceptional cost. This includes
having the right type and quantity of funds, in the
right place, at the right time and in the correct
currency. Monzo’s liquidity risk appetite is to
meet all liabilities as they fall due. The contractual
maturities of financial assets and liabilities are
calculated on the contractual cash flows and are
shown undiscounted below.
On demand Less than Between Between six Over one year Total
three months three and months and
six months one year
£'000 £'000 £'000 £'000 £'000 £'000
Gross financial assets
Cash and balances at bank 1,352,363 660 – – 20,700 1,373,723
Loans and advances 71,035 8,861 6,712 12,363 53,078 152,049
to customers
Treasury investments – 98,953 – – – 98,953
Other assets 64,219 6,648 105 12 2,208 73,192
Collateral held with third parties 5 290 – 477 14,870 15,642
Total gross financial assets 1,487,622 115,412 6,817 12,852 90,856 1,713,559
Customer deposits 1,392,517 – – – – 1,392,517
Other liabilities – excluding 24,759 154,319 – – – 179,078
lease liabilities
Lease liabilities – 903 996 1,992 16,976 20,867
Total financial liabilities 1,417,276 155,222 996 1,992 16,976 1,592,462
Net asset position 70,346 (39,810) 5,821 10,860 73,880 121,097
Gross financial assets
Cash and balances at bank 539,847 – – – 10,000 549,847
Loans and advances 15,474 580 – – – 16,054
to customers
Treasury investments – – – – – –
Other assets 15,446 1,065 3,313 – – 19,824
Collateral held with third parties – 124 – – 16,653 16,777
Total gross financial assets 570,767 1,769 3,313 – 26,653 602,502
Customer deposits 461,822 – – – – 461,822
Other liabilities 28,425 1,574 – – – 29,999
Total financial liabilities 490,247 1,574 – – – 491,821
Net asset position 80,520 195 3,313 – 26,653 110,681

Our undrawn overdraft commitments of £278.1m A series of stress and scenario testing during a
(2019: £81.0m) are all on demand. 3 year forecast is also undertaken to assess the
resilience of the capital position. In all cases,
Liquidity risk is managed by the Treasury team. Monzo has shown that it is able to withstand the
Reporting and management of the liquidity risk Board approved stress scenarios, in some cases
is monitored by ALCO, which meets on a monthly because management actions have been taken
basis. The Group currently holds its surplus to mitigate the effect of these stresses.
assets in overnight deposits with central banks
and in treasury assets which can be liquidated
on demand to provide liquidity. The key metric Key capital risk metrics
used to monitor liquidity risk is the Liquidity
Coverage Ratio (LCR). At year end and at all times Monzo’s key capital metric is the current and
throughout the year, Monzo was significantly in projected surplus of capital resources over
excess of all liquidity targets. regulatory capital requirements. The CET1 ratio
is also monitored. Currently Monzo’s capital
resources consist solely of paid up share capital.
As at 29 February 2020 Monzo’s CET1 ratio was
21. Capital risk management 70% (unaudited) based on our minimum capital
requirements. During the year ended 29 February
Capital risk is the risk that the Company
2020, the Bank complied in full with all its
has suboptimal quantity or quality of capital
externally imposed capital requirements.
resources to meet its capital requirements and to
absorb unexpected losses if they were to occur.
Causes of inadequate capital could include a
high level of default on overdrafts already given 22. Market risk management
by the Company, or having large unexpected
operational losses.
Interest rate risk
Monzo continues to maintain capital ratios that
exceed its minimum requirements under the Interest Rate Risk in the Banking Book (IRRBB)
Capital Requirement Directive IV regulatory is the risk of value changes to both earnings and
framework. Full details of the Bank’s regulatory capital arising from changes in interest rates. This
capital and calculation of its regulatory total can be caused by:
capital requirement are provided in the Pillar
• Repricing risk: the timing differences in the re-
3 report published on our website. Monzo
pricing of Monzo’s assets and liabilities;
refreshes its ICAAP on an annual basis, which
includes a 3 year forecast of the Bank’s capital • Basis risk: the exposure to different interest
position. The ICAAP is used to inform the future rates with different re-pricing profiles;
capital strategy and is submitted to the PRA
• Yield curve risk: unexpected changes to the
following Board scrutiny and approval.
level and/or shape of yield curves; and
The ICAAP assesses the Company’s Pillar 1 • Optionality risk: embedded features that
requirements using the Standardised/Basic influence behaviour.
Indicator approaches (for respectively credit
risk and operational risk capital) and determines Monzo’s interest rate risk comes through
additional Pillar 2A capital to be held for those unsecured lending and deposit-taking, Treasury
risks not captured or not fully captured by Pillar 1 investments and funding activities.
capital. The Company also holds Pillar 2B capital
based upon wind-down costs and the regulatory Interest rate risk management is monitored by
determined capital conservation buffer and the Treasury squad with oversight from the Risk
counter-cyclical buffer. function. The Treasury squad is responsible
for balance sheet management and hedging
strategies to manage interest rate risk. Interest
rate risk is monitored by ALCO on a monthly basis.
The table below shows the indicative impact of Credit risk management
a 75 basis point change in interest rates on our
interest bearing financial instruments held at Exposure to credit risk is monitored and managed
year end. by the Borrowing Collective and overseen by the
CRO function in the 2nd Line of Defence. The
principal committee at which our retail credit
29th February 2020
risk is scrutinised and managed is the Credit
Interest rate risk -75bps +75bps Risk Committee which is overseen by the ERMC.
Impact to annual (10,028) 10,028 In addition, the overall risk appetite and lending
interest income criteria and policy are approved by the Board.
(£'000)
The Credit Risk Committee monitors a
Impact as percentage -7.77% 7.77%
responsible lending policy and ensures
of Net Assets
appropriate controls are in place to maintain
at year end
the quality of lending, including reviewing
management information that includes credit
portfolio and financial accounting metrics. Early
warning indicators, credit performance trends
Foreign exchange risk
and key risk indicators are monitored within the
Borrowing Collective with recommendations
Foreign currency risk arises from having assets
discussed at the Credit Risk Committee for
and liabilities in currencies other than Sterling.
approval and subsequent implementation.
Overarching appetite indicators are tracked at
At year end the Group’s main exposure to foreign
the ERMC and at the Board Risk Committee.
currency risk was on balances held in US Dollars
and Euros for use in day to day operations. The
risk of fluctuations in foreign exchange rates
Credit risk mitigation
on these balances is considered immaterial to
the Group.
We use lending criteria when assessing
applications for overdrafts and loans which are
aligned to Affordability principles (as outlined
23. Credit risk in the FCA’s Consumer Credit sourcebook) and
our risk appetite. The general approval process
Credit risk is the risk of financial loss when uses application data provided by the customer
customers or other counterparties fail to settle when they take on an overdraft or loan and their
their contractual obligations to us or fail to credit history using information held by credit
perform their obligations in a timely manner. reference agencies.
We currently provide overdraft facilities and short Customer exposure is actively managed to
term unsecured loans to individuals in order to make sure that lending exposure is within the
generate a return through overdraft fees and risk appetite at all times. As a result, overdraft
interest income. Lending creates credit risk as limits can be revised when applications are
borrowers might fail to pay the fees/interest reassessed. All lending policies are determined
or the capital due. This is usually caused by with reference to current and likely future
adverse changes in macro-economic factors or expectations of the UK’s macroeconomic
a change in an individual customer’s behaviour environment and with an expectation that
and circumstances. material losses will not occur.
Unless otherwise noted, the amount that best

represents the maximum credit exposure at
the reporting date is the carrying value of the
financial asset. As a material risk to us, there
is significant management focus on setting
credit risk appetite and embedding appropriate
risk mitigation.
The main goal of the collections policy is to treat Impairment under IFRS 9
customers fairly. We contact each customer in
financial difficulty individually to discuss their IFRS 9 requires recognition of ECL based on
circumstances. Where a customer is identified unbiased forward-looking information, for us this
as vulnerable or in financial difficulty, we offer is applicable to all financial assets measured at
a range of support, tools and assistance (or amortised cost. Under IFRS 9 guidance, assets
point them towards external organisations that are required to be classified into the following
can give them extra support). This means we three stages:
can agree individual actions or plans with each
1. Stage 1: Assets that have not had a significant
customer, which helps to bring customers’
increase in credit risk since initial recognition
facilities back into a sustainable position.
or that have low credit risk at the reporting
date. For these assets, 12-month ECL are
recognised and interest income is calculated
Credit Impairment provision
on the gross carrying amount of the asset.
12-month ECL are the expected credit losses
The IFRS 9 Impairment Council is responsible
that result from default events that are
for approving monthly IFRS 9 ECL numbers
expected within 12 months after the reporting
for Impairment, ensuring that ECL have
date.
been calculated in line with the governance
and controls required by the Monzo IFRS 9 2. Stage 2: For assets that have experienced
Impairment Policy. The meeting provides the a significant increase in credit risk since
primary means for: initial recognition but that do not have
objective evidence of impairment, lifetime
• Oversight of key governance and controls for
ECL is recognised and interest income is still
the impairment process.
calculated on the gross carrying amount of the
• Ongoing assessment of the suitability, asset. Lifetime ECL are the expected credit
structure, implementation and performance of losses that result from all possible default
the controls embedded within the First Line of events over the expected life of the financial
Defence. instrument.
• Selection of IFRS 9 economic scenarios and 3. Stage 3: For assets that have objective
their weighting. evidence of impairment at the reporting date,
lifetime ECL are recognised and interest
• Approval on the use of, or removal of, Expert
income is calculated on the carrying amount
Credit Judgement provision.
net of impairment allowance.
• Assessment of drivers of change in ECL, with
a specific focus on the metrics required for
annual external and regulatory reporting. Other assets
• Making recommendations to the BRC on
We have applied the low credit risk exemption for
changes to policy, and highlight impacts to
balances including UK Treasury investments and
provisions on risk appetite, business planning,
assets held with central banks.
strategy and product changes.
We also applied a simplified approach to other
trade receivables. These are short term in
nature, the lifetime ECL does not exceed the
12-month ECL and where recognised, the lifetime
ECL doesn’t identify significant increases in
credit risk.
ECL model • Quantitative criteria: the quantitative trigger

has been based around the comparison of
Credit losses are the expected cash shortfalls the remaining lifetime PD at observation
from what is contractually due over the (i.e. reporting date) against the lifetime PD
expected life of a financial asset. Financial at origination, when the exposure was first
assets are grouped together by product type, recognised. If the ratio of these two PDs
currently Loans or Overdrafts, and IFRS 9 ECL breaches a predefined threshold at any point,
is modelled on a collective basis using shared the account is moved into Stage 2 and its ECL
risk characteristics such as credit score for is calculated on a Lifetime PD basis.
probability of default and contractual payment
• Qualitative criteria: qualitative factors
terms for prediction of future exposures. The
indicating potential financial difficulty have
impairment model calculates ECL at a customer
been reflected in the model as a trigger for a
level by multiplying the probability of default (PD),
significant increase in credit risk. For example,
exposure at default (EAD) and the loss given
when a customer has agreed to a Promise to
default (LGD) and discounting using the original
Pay (i.e. when a customer agrees to bring their
effective interest rate (EIR).
balance back within their arranged overdraft
• PD represents the likelihood of a customer limit by a certain date).
defaulting on their overdraft or loan over
• Backstop: A rebuttable presumption within
the next 12 months or over the remaining
IFRS 9 is that, where the customer is more than
lifetime. We currently rely on data provided
30 days past due, credit risk has significantly
by an external Credit Bureau which is suitably
increased. However, if reasonable and
calibrated to PDs representative of our
supportable information can suggest that an
portfolio. We are in the process of developing
alternative number of days past due is more
internal credit scorecards for both overdrafts
appropriate, then the backstop trigger may
and loans.
be amended. Based on analysis conducted
• EAD is based on the amount expected to be by management on cure rates, a backstop
owed at default. For overdrafts, the EAD is of 15 days has been assessed to be more
calculated by taking the current drawn balance appropriate.
and adding a credit conversion factor that
allows for the expected drawdown of the
remaining limit by the time of default. For Loans, Forecast economic data
the EAD is calculated based on the contractual
repayment schedule and accounts for missed IFRS 9 requires our ECL to reflect a range of
payments and accrued interest at the point possible outcomes and consider possible
of default. future economic conditions. To achieve this,
the impairment calculation uses three (FY2019:
• LGD is the expectation of loss on a defaulted
three) economic forecasts: base, downturn and
exposure. It represents our expectation of the
recession. All of the scenarios have been sourced
extent of loss on a defaulted exposure and is
from an independent economist. The base,
expressed as a percentage loss per unit of EAD.
downturn and recession scenarios are calculated
from a range of economic variables that are
stressed around the base case.
Determining a significant increase in credit risk
since initial recognition
The COVID-19 pandemic has significantly
impacted the global economy and therefore
The impairment model utilises both relative
the finances of our customers. This increases
and absolute criteria to identify increases in
the associated risk of default in our overdraft
credit risk:
and unsecured personal loan products. We
do not believe the impact of this risk had fully
crystallised as at 29 February 2020; however,
based on the information available at year-end
we increased our provision accordingly.
In our scenarios, we have assumed that there is no The forward looking economic variables
upside, unemployment does not return to recent considered as inputs to the final ECL calculation
historical levels in the next 5 years and note that are (i) UK unemployment and (ii) mortgage
the forecast pre-dates the UK furlough scheme. interest gearing.
Economic scenarios
Base Downside 1 Downside 2 Weighted
Scenario probability Weights (%) 50.0% 47.5% 2.5%
As at 29 February 2020 (5 year Average)
Unemployment (%) 4.5% 5.5% 8.0%
Mortgage Interest Gearing 2.4% 2.4% 2.4%
Peak Value
Unemployment (%) 5.1% 6.1% 12.1%
Mortgage Interest Gearing 2.5% 2.5% 2.5%
Impairment allowance with 100% 18.2 18.8 77.2 20.00
Weighted scenarios (£m)
Prior to the COVID-19 pandemic becoming • the overdraft or loan has been renegotiated
apparent, we applied macroeconomic scenarios because the customer’s condition has
for Unemployment and GDP. As the pandemic deteriorated. This includes cases where a
unfolded, we revised our scenarios and specific repayment plan has been agreed; and
macroeconomic variables. These are presented
• the customer has requested ‘breathing space’
in the table above. The impact of updating the
i.e. when the Bank agrees to give the customer
scenarios in response to COVID-19 resulted in
some time in which they won’t be contacted
an ECL uplift of £4.1m compared to the pre-
about their arrears at all and fees or interest is
COVID-19 estimate of £15.8m.
frozen.
Our policy is to consider an overdraft account

Definition of default and credit-impaired assets
as ‘cured’ and therefore re-classified out
of Stage 3 when the outstanding balance is
We consider a financial instrument defaulted
reduced to below the authorised limit set and
and therefore Stage 3 (credit-impaired) for
a fixed probation period has passed. Loans are
ECL calculations when the borrower becomes
considered ‘cured’ and therefore re-classified
90 consecutive days past due. In the case of
out of Stage 3 when all past due repayments are
overdrafts, a customer is deemed to be past
repaid along with any additional interest that may
due when the account has been above it’s
have accrued due to their late payment and a
overdraft limit, or overdrawn without an agreed
fixed probation period has passed.
limit, for 90 or more days. For loans an account
is deemed 90 days past due when they become
Modification
three instalments behind their agreed monthly
repayment schedule.
We sometimes change the terms of a loan or
overdraft when a customer gets into financial
As part of a qualitative assessment of whether a
difficulty (this is known as forbearance), or for
customer is in default, we also consider a variety
other commercial reasons. Long term forbearance
of instances that may indicate unlikeliness to pay.
can result in modifications to contractual cash
When such events occur, we carefully consider
flows. When this occurs the gross carrying value
whether the event should result in treating the
of a financial asset is not impacted. However
customer as defaulted and therefore assessed as
the ECL of that financial asset changes, as it is
Stage 3 for ECL calculations or whether Stage 2 is
now classified to Stage 3 and is therefore under
appropriate. Such events include:
lifetime ECL. As at 29 February 2020, the gross
• the customer filing for bankruptcy or Individual carrying amount of accounts in forbearance was
Voluntary Agreement; £1.0m. The lifetime ECL booked against these
accounts as at 29 February 2020 was £0.9m.
• the customer is deceased;
Other formal arrangements that represent a Write off

change in a customer’s obligation are treated
as a modification, when this change was not A loan or overdraft is written off in full against
permitted in the terms and conditions of the the related provision, when there is no realistic
customer’s original agreement. For any change prospect of recovery and the amount of
that is categorised as a modification of terms, the loss has been determined. Subsequent
the gross carrying amount of the modified asset recoveries of amounts previously written-off
is calculated based on the net present value of are recognised directly in the Statement of
all expected future cash flows. This is based on Comprehensive Income.
the modified terms, discounted at the original
effective interest rate. If the modification is
considered to be significant then the original Critical accounting estimate
arrangement is derecognised and a new
one recognised. The calculation of the credit impairment provision
position involves judgement, in particular
the weighting of economic scenarios used to
calculate forecast losses.
As at 29 February 2020, our portfolio consisted

entirely of retail lending within the UK. The
following table summarises lending as at the
year end by IFRS 9 impairment stage and the
related provision.
Analysis of overdrafts and loans by stage
Stage 1 Stage 2 Stage 3 Total

£’000 £’000 £’000 £’000
Overdrafts and 45,567 24,738 2,675 72,980
overdrawn balances
Loans 61,913 8,412 604 70,929
Gross carrying amount 107,480 33,150 3,279 143,909
Overdrafts and (925) (5,391) (2,345) (8,661)
overdrawn balances
Undrawn overdraft commitments (5,189) (3,100) (64) (8,353)
Loans (1,285) (1,154) (543) (2,982)
Impairment allowance (7,399) (9,645) (2,952) (19,996)
Overdrafts 39,453 16,247 266 55,966
Loans 60,628 7,258 61 67,947
Net amounts receivable 100,081 23,505 327 123,913
ECL Coverage Ratio (%) 6.88% 29.10% 90.03% 13.89%
Undrawn Commitments
Gross carrying amount 263,846 14,226 73 278,145
Impairment allowance (5,189) (3,100) (64) (8,353)
Net carrying value 258,657 11,126 9 269,792

£’000 £’000 £’000 £’000
Overdrafts and 14,226 3,273 1,071 18,570
overdrawn balances
Loans 578 20 5 603
Gross carrying amount 14,804 3,293 1,076 19,173
Overdrafts and (1,187) (954) (955) (3,096)
overdrawn balances
Loans (11) (7) (5) (23)
Impairment allowance (1,198) (961) (960) (3,119)
Overdrafts and 13,039 2,319 116 15,474
overdrawn balances
Loans 567 13 – 580
Net amounts receivable 13,606 2,332 116 16,054
Undrawn Commitments
Gross carrying amount 78,178 2,736 113 81,027
Impairment allowance (917) (283) (65) (1,265)
Net carrying value 77,261 2,453 48 79,762
Stage 3 financial assets
Gross carrying Impairment Coverage

amount Allowance
£’000 £’000 %
Overdrafts and overdrawn balances
Credit-impaired not in cure period 2,349 2,090 89%
No longer credit-impaired but in cure 326 319 98%
period that precedes transfer to stage 2
2,675 2,409 90%
Loans
Credit-impaired not in cure period 581 522 90%
604 543 90%
Undrawn commitments
73 64 88%
Gross carrying Impairment Coverage

amount Allowance
£’000 £’000 %
Overdrafts and overdrawn balances
Credit-impaired not in cure period 1,071 955 89%
1,071 955 89%
Loans
5 5 100%
Undrawn commitments
113 65 58%
Credit Impairment provision movement table
An analysis of changes in the gross overdraft and

loan amounts receivable from customers and
undrawn commitments:

£’000 £’000 £’000 £’000
Gross Loans and Advances
to customers
As at 1 March 2019 14,804 3,293 1,076 19,173
New facilities originated 91,976 – – 91,976
Transfers to Stage 1 2,253 (2,232) (21) –
Transfer to Stage 2 (21,984) 22,008 (24) –
Transfer to Stage 3 (2,783) (781) 3,564 –
Changes in net exposure 30,422 12,562 2,972 45,956
De-recognition (7,208) (1,700) (162) (9,070)
Write-offs – – (4,126) (4,126)
As at 29 February 2020 107,480 33,150 3,279 143,909

£’000 £’000 £’000 £’000
Gross Undrawn Commitments
As at 1 March 2019 78,178 2,736 113 81,027
Transfers to Stage 1 2,710 (2,658) (52) 0
Transfer to Stage 2 (21,742) 21,747 (5) 0
Transfer to Stage 3 (2,928) (96) 3,024 0
Changes in net exposure (7,676) (7,228) (2,514) (17,418)
De-recognition (4,119) (275) (61) (4,455)
Write-offs – – (432) (432)
As at 29 February 2020 263,846 14,226 73 278,145
An analysis of changes in the gross Undrawn

commitments and the related Impairment
provision is as follows:

£’000 £’000 £’000 £’000
Impairment allowance
As at 1 March 2019 1,198 961 960 3,119
Transfers to Stage 1 312 (293) (19) –
Transfer to Stage 2 (818) 840 (22) –
Transfer to Stage 3 (194) (300) 494 –
Changes in ECL due (257) 1,386 2,858 3,987
to stage transfer
Other changes in net exposure (2,395) (15,550) (2,715) (20,660)
Changes in risk parameters 4,987 22,662 5,594 33,243
De-recognition (217) (61) (72) (350)
Write-offs – – (4,126) (4,126)
As at 29 February 2020 7,399 9,645 2,952 19,996
The table below details a reconciliation of the

movement in the Balance Sheet ECL to the
credit impairment charges to the Statement of
Comprehensive Income
Loans and advances Receivables Total

to customers
£’000 £’000 £’000
Reconciliation of Credit
impairment charge/(release)
Movement in impairment allowance 16,901 (773) 16,128
Write-offs 4,126 – 4,126
Income statement charge/ 21,027 (773) 20,254
(release) for the period
The sensitivity of the IFRS9 models can be seen

in the following table:
Impact on ECL
£’000 %
Closing ECL 29 19,996
February 2020
PD increase 2.5% 222 1.1%
PD decrease 2.5% (234) (1.2%)
LGD increase 2.5% 295 1.5%

LGD decrease 2.5% (295) (1.5%)
EAD increase 2.5% 224 1.1%

EAD decrease 2.5% (205) (1.0%)
Transfer ratio (476) (2.4%)

increase 20%
Transfer ratio 678 3.4%
decrease 20%
Credit quality
The table below provides information on the

credit quality of our overdraft and loan book.
This is segmented by risk grades which are
determined via reference to credit scores
provided by an external Credit Bureau agency
with each having an associated PD range. This is
consistent with our internal credit risk policy and
Basel PD’s.
Gross balances Impairment allowance Net ECL

balances Coverage
Stage 1 2 3 Total 1 2 3 Total
Risk grade PD Range £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 %
%
Very low risk 0% < to 58,815 1,491 - 60,306 3,821 90 - 3,911 56,395 6%
1.15%
Low risk 1.15% < 31,701 5,473 - 37,174 1,240 984 - 2,224 34,950 6%
to 2.50%
Medium risk 2.50% < 11,333 6,433 - 17,766 1,069 1,325 - 2,394 15,372 13%
to 4.97%
High risk 4.97% < 2,841 5,284 - 8,125 526 1,759 - 2,285 5,840 28%
to 8.32%
Very high risk 8.32% 2,780 6,478 - 9,258 742 2,483 - 3,225 6,033 35%
< to
99.99%
Arrears 15% to 10 7,991 - 8,001 1 3,004 - 3,005 4,996 38%
78%
Default 100% - - 3,279 3,279 - - 2,952 2,952 327 90%
As at 29 February 107,480 33,150 3,279 143,909 7,399 9,645 2,952 19,996 123,913 14%
2020
Out of cash and balances at banks stated at

£1,374m, £1,338m are held with central banks
and £35m are held with one UK bank which has
an investment grade credit rating.
Other ECL balances
In the prior year we held a credit impairment

charge against an amount receivable under the
prepaid card scheme. In the current year the
outstanding balance was settled, and the credit
impairment charge unwound.
29th February 28th February

2020 2019
£'000 £'000
Opening expected credit loss 773 –
Additions – 773
Used (23) –
Unused amounts reversed (750) –
Closing expected credit loss – 773
24. Contingent liabilities and 25. Contingent asset

undrawn commitments The Group has a contract in place with a key
payment network provider which contains
certain discounts on cross-border fees, based
Contingent liabilities
on achieving transaction volume targets by 30
September 2020. Management deemed the
There are no significant contingent liabilities as
discount to be a contingent asset arising from
at 29 February 2020 (FY2019: £nil).
past events under IAS 37. As at 29 February
2020, this target had not been achieved, and
We may, from time to time, be party to claims
therefore it was not virtually certain that this
arising in the ordinary course of business and
benefit would be realised and therefore no asset
be required to provide redress to customers
was recognised. Management has estimated the
whose accounts have been the subject of
value of the contingent asset to be at £720k at
fraudulent transfers. The amount of any redress
year end.
is not reliably measurable and will depend
on the circumstances pertaining to each
individual claim.
Undrawn commitments
Total committed but undrawn facilities as at 29

February 2020 are £278.1m (2019: £81.0m) in
respect of customer overdraft agreements. These
commitments represent agreements to lend in
the future subject to the terms and conditions
of the agreement, so the amount and timing of
future cash flows are uncertain.
26. Provisions 27. Country reporting disclosure

In the year we signed leases on new office In 2014, the UK Government enacted legislation
buildings in London and Cardiff. The leases (contained in the Financial Services and Markets
include dilapidation provisions to bring the Act 2000 Statutory Instrument 3118) with respect
buildings back to the original state at the end to country reporting disclosure.
of the lease. At the inception of the leases we
recognised a provision for the contracted amount Monzo Bank Limited is incorporated in the UK and
included in the lease or using an estimate undertakes banking activities as described in the
where an estimate could be reliable given. The Strategic Report.
provisions are discounted, to the present value
at the start of the lease, using the same proxy Monzo Support US Inc. is incorporated in the
for our incremental borrowing rate as used in the USA and provides support services to Monzo
calculation of the lease liability. This discount is Bank Limited.
being unwound over the life of the lease.
Monzo Inc. is incorporated in the USA and began
No other IAS 37 provisions were recognised in offering a prepaid card product, to customers in
the year. the USA, during the year.
Dilapidation of offices
£’000
Opening provision –
– 1 March 2019
Additions 996
Unwinding of discount 45
Closing provision – 29 1,041
February 2020
UK USA Total
£’000 £’000 £’000
Average number of employees (FTE) 1,049 79 1,128

Turnover (Total income) 67,179 3 67,182
Loss before tax 112,088 3,383 115,471
Corporation tax credit 1,655 – 1,655
Public subsidies received 365 – 365
28. Called up share capital

29 February 2020 28 February 2019
£ £
Ordinary shares of £000000.1 each 13 12
13 12
Nominal Number of Share Capital

ordinary shares
As at 28 February 2018 105,399,644 11
Shares issued 0.0000001 13,740,444 1
Options exercised 0.0000001 1,584,483 –
As at 28 February 2019 120,724,571 12
Shares issued 0.0000001 8,722,160 1
Options exercised 0.0000001 22,466 0
As at 29 February 2020 129,469,197 13
The ordinary shares have several share classes,

all of which have the same full voting rights
29. Group structure
attached and rank pari passu in all respects,
with the exception of anti-dilution rights and the
Group entities
distribution of proceeds from a share sale event
which involves a change in control.
The Group consists of Monzo Bank Limited as the
Parent and ultimate controlling entity along with
Some of the shares in issue are owned by
two wholly-owned subsidiaries. The shareholding
members of the Board, management and
and registered offices of each entity are set
colleagues. At the balance sheet date 7,117,508
out below.
(FY2019: 9,659,785) shares were unvested.
In November 2019 we repurchased 16,035 of our

own ordinary shares for £208,764.96.
Other reserves are made up of the share-based

payments that haven’t yet been exercised at
year end.
Legal entity Shareholding Registered office

Monzo Bank Limited Parent Broadwalk House, 5 Appold Street,
London, United Kingdom, EC2A 2AG
Monzo Support US Inc 100% 1209 Orange Street, Wilmington, New
Castle County, Delaware, 19801, USA
Monzo Inc 100% 1209 Orange Street, Wilmington, New
Castle County, Delaware, 19801, USA
We also serve as trustee of bare trusts used

with savings providers for the benefit of our
customers, which are not reported on our
Statement of Financial Position. During FY2020,
on the instructions of our customers we
transferred £1,302.6m (FY2019 £226.3m) to
our savings providers. During FY2020, £678.6m
(FY2019 £59.1m) was returned to customers.
We earned commission in relation to our role
as trustee as described in Note 3. We have no
exposure to loss on these deposits.
Investment in subsidiaries
Company
£’000 £’000
Cost
Opening balance 78 –
Additions 4,651 78
Impairment (4,286) –
Closing balance 443 78
Impairment We took a relatively simple approach to assessing

the impairment, because due to the nature of
At each reporting date, IAS 36 Impairment of the entity, it does not have a value in use as
Assets, requires the Company to assess whether there are no associated future cashflows. The
there are indications for impairment of its fair value less costs to sell, was also assumed to
subsidiaries. This specifically requires assets be zero, due to the relatively low carrying value
to be carried at no more than the recoverable of the investment and the costs that would be
amount, the recoverable amount being an asset’s required to engage in a sale process. Monzo
fair value less costs to sell or value in use. Support also has immaterial net assets, the value
of the investment is in the people, who could
In April 2020, we made the difficult decision be employed without purchasing the business
to close Monzo Support US Inc by July 2020. or entity. Therefore the investment was fully
This provided an indication that the Company’s impaired, resulting in a charge to the Company’s
carrying value in this subsidiary is impaired. Statement of Comprehensive Income of £0.8m.
The Company’s investment in Monzo Inc. has also

been impaired while growth has slowed during
the current economic uncertainty. The progress
of the US business and our US Banking Charter
application is difficult to value, therefore we have
decided to hold our investment at its current
recoverable amount. This has resulted in a charge
to the Company’s Statement of Comprehensive
Income of £3.5m. We continue to support
this entity.
30. Share-based payments The Group operates four equity settled share
options schemes, three in the UK and one in
All new colleagues (including senior Executives) the US. The first is an HMRC approved Company
receive share options when they join the Share Option Plan (CSOP), where awards can be
Company and may be entitled to further share made to colleagues subject to conditions. The
options as a reward for performing well and to strike price for these options is set according to
incentivise them to make Monzo a success. the fair market share price at the time of issue as
agreed with HMRC. The fair market share price
The share options issued are equity settled with was based on the pricing achieved in the funding
no cash settlement options. Options typically round immediately preceding the issuances,
vest evenly over four years with a one year cliff; since the shares aren’t actively traded. The
if a colleague leaves within the first year of second scheme is an unapproved plan, these
employment, they forfeit all vested options at that awards are made with the strike price set equal
date. There are no non-market vesting conditions. to the £0.00001. The third scheme is a Leaver
Share Option Plan which converts the vested
Our expense for the share options granted to CSOP share options for leavers into unapproved
our colleagues is recognised over the period options. The strike price is set at the fair market
between the grant date and the vesting date of value determined at the grant date of the original
those options. We calculate the overall cost of CSOP options.
the option award using the number of shares and
number of options expected to vest and the fair The Group also operates an equity settled
value of the options at the grant date. The overall Incentive Stock Option (ISO) scheme for
cost is recognised as a colleague expense, with a colleagues in its US subsidiaries, which involves
corresponding increase in other reserves within the equity instruments of Monzo Bank Limited.
equity, over the period that colleagues provide The strike price is determined by a third party
services. This is generally the period between the valuation exercise conducted in accordance with
award being granted or notified and the vesting Section 409A of the Internal Revenue Code. In
date of the options. the Company only accounts, this arrangement
leads to the US subsidiaries recognising a capital
We determine the grant date fair value using contribution from the parent, with Monzo Bank
valuation models which take into account the Limited recognising a corresponding increase to
terms and conditions attached to the awards. its investment in the US subsidiaries.
Inputs into the valuation model include the
risk free rate and the expected volatility of The Company measures the cost of all equity-
the Group’s share price. The Group’s market settled options based on the fair value of the
share price is assessed through a quarterly awards at the date of grant. The fair value is
valuation exercise, which applies revenue and determined based on the Black-Scholes valuation
asset multiples, while also considering the model since the share options aren’t actively
Group’s performance. traded. Using an option valuation model to
determine the fair value means including highly
subjective assumptions including the fair market
share price, expected price volatility, expected
life of the award and dividend yield. Changes in
the subjective assumptions can materially affect
the fair value estimates.
For accounting purposes, the fair value of the The main assumptions we’ve used in deriving the
share price assumption was evaluated on a value of the options at grant are shown below.
quarterly basis through valuation exercises
conducted by management, which considered
relevant metrics such as revenue multiples, asset
multiples and customer growth. Where there was
an external valuation (e.g. through fundraising)
close to the date of the internal valuation,
management have used the external valuation for
purposes of calculating share based payments.

Valuation assumptions
Risk free rate 0.45% 0.82%
Volatility 40% 40%
Dividend yield nil nil
Expected life 4 years 4 years
The expected volatility was determined solely by We recognise the fair value of options at
assessing the historical volatility of listed peers grant date as a colleague expense with a
to obtain an estimated ‘implied’ volatility. corresponding increase in other reserves
over the period that the colleagues become
unconditionally entitled to the awards. The total
expense in the year ended 29 February 2020 was
£14.4m (2019: £2.5m).
CSOP Number Non-CSOP ISO Number

Number
At 1 March 2018 5,165,776 4,726,355
Granted during the period 2,863,554 2,121,839
Lapsed (577,455) (317,962)
Exercised (126,951) (1,457,532)
At 28 February 2019 7,324,924 5,072,700 –
Granted during the period 984,294 3,544,512 223,823
Lapsed (104,888) (371,979) (16,040)
Exercised (22,073) (393) –
At 29 February 2020 8,182,257 8,244,840 207,783
The weighted average exercise prices, remaining

life, and fair value of all outstanding options as at
29 February 2020 are outlined in the table below.
Year ended 29 February 2020

CSOP Non-CSOP ISO
Range of exercise prices for £0.1997 – £0.0001 £10.42
outstanding options £13.0194
Range of exercise prices £0.1997 – £0.0001 n/a
for exercised options £1.0058
Weighted average exercise £4.98 £0.0001 £10.42
price for outstanding options
Weighted average fair value £3.32 £5.36 £5.13
of options at grant date
Weighted average remaining 7.6 7.8 8.2
life of outstanding options
There have been no modifications to share-

based payment transactions which resulted in a
31. Related party transactions
change in the classification from cash-settled to and controlling parties
equity-settled.
Options issued under the Leaver Share Option Controlling parties

Plan are considered to be ‘replacement equity
instruments’ under IFRS 2. The terms and In the opinion of the Directors there is no overall
conditions of the cancelled CSOP options and controlling party at year end.
the replacement Non-CSOP options were the
same, with the exception of the time frame for
exercise, which was modified from 6 months to Transactions with key management personnel
10 years. The incremental fair value impact of
this modification was £11k. This was determined Key management personnel are defined as those
by comparing the fair values of the original and people with authority and responsibility for
replacement options, per the Black Scholes planning, directing and controlling the activities
model at the date of replacement. of the Company. This includes the Board of
Directors and Executive Committee.
The compensation paid or payable to key

management personnel is shown in the
tables below:

£’000 £’000
Transactions with key
management personnel
Salaries & remuneration 1,806 1,415
Social security contributions 74 68
Share based payments 1,378 637
Contributions to defined 53 27
contribution plans
3,311 2,147
In addition, a total of 28,475 shares were The deposits, overdrafts and loans of key
purchased by Directors’ at a fair value of management personnel on the balance sheet at
£233,200 in the year ended 29 February 2020. year end are shown in the table below:

£’000 £’000
Balances of key
management personnel
Deposits 144 147
Overdrafts – 0
Loans – –
In addition, overdrafts totalling £0.02m (FY2019:

£0.01m) were available to key management
33. Events after the
personnel at year end. reporting date
During the year some of our key management
were involved in testing the overdraft migration COVID-19
from fixed fee to APR based charging, which was
performed with preferential rates. As at 29th The COVID-19 pandemic has created
February 2020, none of the key management unprecedented social and economic disruption
involved in testing had an outstanding overdraft across the world. We still don’t know the full
balance with the Group. Any deposits, loans or extent of it, but the UK is starting to ease some
overdrafts with key management personnel, other of the restrictions. We put business resilience
than the exception noted above, are on the same plans in place to make sure our colleagues
terms as those with our customers. were safe and still able to serve our customers
without disruption.
Transactions with related parties The pandemic is forecast to reduce our revenues
for FY2021. To manage these risks, we have taken
There were no transactions with related parties a number of difficult management actions to
during the year other than those disclosed above. control the business and achieve our plan while
serving customers.
Our total ECL charge of £20.3m for the year

32. Auditor’s remuneration ending 29 February 2020 includes an ECL charge
of £4.1m in response to the worsening economic
Auditor’s remuneration for the audit of the
outlook, which we believe was reasonable and
financial statements was £1.1m (FY2019: £0.4m)
supportable based on the circumstances that
and remuneration in respect of non-audit
prevailed as at 29 February 2020. We source
services was £nil (FY2019: £0.03m).
our economic scenarios from a third-party
which reflects the prevailing economic outlook
as at 29 February 2020. Refer to Note 23 for
assumptions applied.
Since that time, we’ve noted that the ECL Overdrafts

impact from forward-looking multiple economic
scenarios has changed from that considered Due to the FCA’s decision to stop fixed fee
as at 29 February 2020. This is largely due charging on overdrafts at the beginning of April
to the scenarios considered at 29 February 2020, we switched all of our overdrafts from fixed
2020 assuming a sudden deterioration in the fee to APR based charges.
economic outlook, with an immediate impact on
unemployment. Since then, the immediate impact
from the deterioration in the economic outlook on Change in CEO
unemployment has been more gradual than we
first expected. This change is largely due to the On 20 May 2020 Tom Blomfield announced
UK Government’s intervention which included the that he would be stepping into the new role of
UK furlough scheme, launched on the 23 March President. TS Anil has succeeded Tom as our new
2020, and other measures aimed at supporting CEO, subject to regulatory approval.
the economy.
As it is not possible to reliably estimate the full Redundancies

extent of COVID-19, we are closely monitoring
the situation and the appropriateness of In June 2020 we announced that we may need to
economic scenarios. make some roles in the UK redundant.
Our Board and senior management have been

reviewing the crisis weekly to make sure we Fundraising
can face the challenges during FY2021, and
have considered these factors in our going The Group raised an additional £58m of capital on
concern assessment. We continue to monitor 15 June 2020.
the Government’s support for the economy,
developing risks, the safety of our colleagues and
how we can help serve our customers. Financial Crime review
Following a regulatory review, in June 2020, we

Closure of Las Vegas began a review of our financial crime control
framework which is still ongoing. As the review is
In April 2020 we made the difficult decision to in progress, the outcome and implications can’t
close our office in Las Vegas. We expect to finish yet be assessed, although they could be material.
the closure in July 2020. Indicators of impairment However, at the moment they don’t highlight a
existed as at February 2020 so Monzo Bank Ltd need to provide for customer detriment due to
fully impaired its investment in Monzo Support past actions. We’ve therefore assessed these
Inc in FY2020, as shown in Note 29. reviews to be non-adjusting post balance sheet
events, any costs arising from them will be
accounted for when it is appropriate.
We launched new products
In March 2020 we launched Monzo Business

and in July 2020 we launched Monzo Plus, a
premium account.

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Monzo Bank Ltd

03 Strategic report 71 Group Directors’ report

Who we are and

FY20161 FY2017 FY2018

1 Our Financial Year (FY) runs from 1st of March to

Customers Customer deposits

FY2019 FY2020 FY2019 FY2020

1.6m 3.9m £461.8m £1,392.5m

Customer spend using Savings Marketplace

FY2019 FY2020 FY2019 FY2020

£3.6bn £10.9bn £165.5m £802.0m

Our Board team

Gary joined Monzo on 1 February 2019. He has extensive experience in

Tim Brooke Keith Woollard Amy Kirk

Phillip Riese Fiona McBain Eileen Burbidge

Miles Grimshaw Alwyn Jones TS Anil

External Appointments: None

1 Subject to PRA approval

Our Executive team

Tom Blomfield TS Anil

Alwyn Jones Sujata Bhatia Mike Hudack

Lisa Nowell Jonas Templestein

1 Subject to PRA approval

We’ve also strengthened our Board of

As I mentioned last year, Phillip is an experienced

Fiona brings a huge amount of board and

Tom Blomfield Our focus right now is on becoming a sustainable

TS Anil The next step involves taking all of that, and

As I sit here and write this, Monzo is at a

We have a strong liquidity position

But, we have a highly liquid balance sheet,

Our Board also held regular meetings to review

Our business model

We want to encourage more customers to use us

We’re bringing Monzo to businesses We’ll continue our gradual and

Our focus has always been on building fair and

2.3m new customer £47.5m revenue £930.7m customer

FY 2019 FY 2020 FY 2019 FY 2020 FY 2019 FY 2020

£124.7m gross -34% Common Equity -5 Net Promoter Score

FY 2019 FY 2020 FY 2019 FY 2020 FY 2019 FY 2020

Certain capital ratios, buffers and operational risk

Our Customer Operations team won a host of

We’re focused on growing Monzo safely We launched to a small number of customers

In February 2020, TS Anil joined us to lead our US

We’re building the financial control Awards

Our financial review

Profit and loss – our income

Personnel expenses (77,486) (25,654) (9,214)

Balance sheet – our assets

Year ended Year ended Year ended

Customer deposits 1,392,517 461,821 71,276

Equity 129,004 115,670 56,179

Total liabilities and equity 1,721,408 614,390 139,820

1 Certain capital ratios, buffers and operational risk weighted

The ERMF outlines the key Enterprise Wide Risk

Expands on the principles and standards defined in

3. Processes and Procedures

Risk type Definition

Our risk activities are subject to detailed and