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Monese Founder Relieved to Focus Solely on Challenger Bank

Monese announced to split the business into two standalone entities: its B2C retail bank Monese and its B2B business XYB
May 6, 2024

Monese, the challenger bank and banking tech platform backed by HSBC, recently made headlines with its decision to split the business into two separate entities: its B2C retail bank Monese and its B2B business XYB. This move comes as Monese faces mounting losses, reporting £30.5 million in losses for 2022, a 70% increase from the previous year.

Founded in 2015, Monese has over two million customers across more than 50 countries, targeting customers underserved by traditional banks. Last year, it introduced XYB, a banking tech platform sold to third parties.

The restructuring, initiated by Monese founder and CEO Norris Koppel, aims to streamline operations and focus resources more effectively. Koppel admitted that managing two distinct businesses within one organization had been challenging, leading to the decision to separate them.

The split will provide Monese and XYB with separate financing, CEOs, and missions. This restructuring has been backed by recent funding rounds, ensuring both entities are well financed. However, it also resulted in around 65 redundancies, reducing the company's headcount to approximately 275.

Despite the split, Monese and XYB will maintain collaboration, leveraging Monese's Electronic Money Institution (EMI) license to offer broader technology and regulated services through embedded finance.

Koppel highlighted that the split would allow Monese to focus on its growth, addressing concerns about the company's financial performance. While Monese reported significant losses in 2022, Koppel anticipates a significant improvement in the company's financials for 2023, with losses expected to decrease to around £3 million. He further stated that Monese is on track to achieve monthly profitability by the end of this year.

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