UK challenger bank Monzo has begun offering customers personal loans, a move that demonstrates its marketplace model was not viable, according to Starling Bank. It said Monzo, which has lost £85m ($103m) since launching in 2015, was unable to make its vision of a banking marketplace turn a profit, but offering traditional banking products, such as loans, at near-market rates would help get it into the black.
UK challenger bank Monzo has begun offering customers personal loans, a move that demonstrates its marketplace model was not viable, according to Retail Banker International. It said Monzo, which has lost £85m ($103m) since launching in 2015, was unable to make its vision of a banking marketplace turn a profit, but offering traditional banking products, such as loans, at near-market rates would help get it into the black.