And because most neobanks are not yet yielding a profit on their own, they are dependent on fresh infusions of capital to remain in business. This means that if investors start becoming unwilling to pump capital into neobanks' businesses, many will face a reality check regarding their sustainability that could result in a contraction in the number of active neobanks in the near future.
If Monzo can get close to breaking even by the next time it looks to raise funds, its valuation will likely head back in the right direction. The fact that Monzo is reportedly still managing to raise tens of millions of pounds in capital even during the coronavirus crisis is a good sign for the neobank, even if its valuation slides.
One way it could move toward the break-even point could be to follow fellow UK neobank Starling's example and make an aggressive play to support businesses during the coronavirus crisis. Monzo its business offering in March — by applying to be a lender through UK relief loans schemes like Starling did, for example, it could boost business customer acquisition during the crisis by supporting embattled small businesses.Business Insider Intelligence analyzes the banking industry and provides in-depth analyst reports, proprietary forecasts, customizable charts, and more.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Ireland Ireland Latest News, Ireland Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
4 fund managers share small-cap stock picks, strategies amid coronavirus - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »
PRESENTING: 9 industries to start a businesses after US reopens - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »
Scott Galloway: You should start a business during the recession - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. profgalloway mia_manoji 823
Source: BusinessInsider - 🏆 729. / 51 Read more »
What 17 female business owners are doing to survive the pandemic - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »
Citigroup org chart for investment banking and BCMA - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Citigroup's power comes from having been bailed out by the power of the American taxpayer. But go on, sing the praises of the Empire of Nothing.
Source: BusinessInsider - 🏆 729. / 51 Read more »
Man Group, Bridgwater, Schonfeld explain quantamental and how it works - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »