Monzo bank are gaining momentum, applying pressure to the traditional banks.
Digital challenger bank Monzo shattered records by attracting over 6,500 investors in its most recent fundraiser that brought in £2.5 million.
The investment crowdfunding platform used to secure this latest injection of capital is Crowdcube, the company that held the previous fundraising record after raising £1 million in 96 seconds last year.
In addition to this recent crowdfunding haul, Monzo bank is also flying high on a £22 million boost from the Series C investment round, and £19.5 million from Thrive Capital, Passion Capital and Orange Digital Ventures.
Tom Blomfield, CEO and founder of Monzo, said: “Working again with a company like Crowdcube is a great collaboration with a real fintech pioneer. I’m delighted that over 6,500 people have invested in this round. Our aim was to engage our community with this crowdfunding fund, so to have attracted the most investors ever on Crowdcube is amazing and demonstrates the power and support of the ‘crowd”.
Luke Lang, co-founder of Crowdcube, comments: “The enormous demand from investors to back Monzo is another example of the huge appetite to invest in pioneering fintech businesses that are transforming a market and meeting the needs of the millennial generation. We’re delighted to give our investors access to such an exciting fintech investment opportunity once again following the success of Monzo’s last raise on Crowdcube, which saw the business raise £1m in just 96 seconds.”
The popularity of challenger banks is mounting constantly, placing great pressure on traditional banks to mobilise and re-evaluate approaches to customer service. Starling Bank is another challenger that is close to a full launch, bringing with it forward thinking plans for international money transfers using a TransferWise API.