Monzo, the digital bank, is developing a digital SIM card to enter the UK mobile phone market, potentially intensifying competition among major providers such as Vodafone, Three, and EE. The move, still in early stages, would see the bank offer mobile contracts to customers, following a trend of financial firms like Revolut and Klarna expanding into telecoms.
Revenue diversification is a key driver for Monzo, which has grown to over 13 million UK customers and 3,900 staff since its 2015 launch. A spokesperson said the initiative stems from customer feedback that mobile contracts are a pain point, and the bank aims to deliver a better experience.
The venture could bolster Monzo's valuation ahead of a potential IPO. It was valued at £4.5bn in October 2024, though that lags behind rival Revolut's $45bn valuation. Monzo holds a full UK banking licence, whereas Revolut only has a restricted licence.
Monzo recently faced a £21m fine from the Financial Conduct Authority for weak financial crime controls, including allowing account registrations with implausible addresses. CEO TS Anil said the issues have been resolved and controls improved.
