Thursday 21 May 2020 9:47 am

Monzo co-founder Tom Blomfield steps down as chief executive

Monzo co-founder Tom Blomfield is stepping down as chief executive of the challenger bank to take up the role of president.

Blomfield will take up the newly created role of president meaning he’ll be stepping back from the day to day operational running of the bank.

Read more: Monzo faces steep valuation drop in coronavirus funding round

Monzo’s US chief executive TS Anil will take over as UK boss and for now will hold both UK and US roles, according to Tech Crunch. Anil has previously had executive roles at Visa, Standard Chartered and Citi.

Monzo is having to navigate an already tough climate with the coronavirus crisis and a series of senior departures. Last week, the challenger bank reportedly raised a fresh round of cash from investors at a 40 per cent discount to its previous fundraising.

The Financial Times reported the fintech was planning to raise between £70m and £80m in the current round, from both new and existing investors, amid worries about the impact of coronavirus.

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The bank is closing its customer support office in Las Vegas, and is furloughing up to 295 staff in the UK. Additionally, senior management and the board have offered to take a 25 per cent cut in salary, with Blomfield deciding not to take a salary for the next year.

There has also been an exodus of senior leadership in recent months. This week the bank’s chief credit officer Tim Trailor left to take up a role at Capital On Tap, while former chief operating officer Tom Foster-Carter and former chief technology officer Meri Williams have also left.

Read more: Monzo applies for US banking licence in bid to tap giant market

However, Monzo still has its sights set on growth and last month applied for a US banking licence as it looks to expand across the Atlantic.

It could take Monzo between 18 months and two years to have its application approved. The process, run by the US Office of the Comptroller of the Currency, is more stringent than other countries’ such as the UK.

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