Challenger bank Monzo has named Diana Layfield, a former Google and Standard Chartered executive, as group chief executive officer, with the handover expected in February subject to regulatory approval, according to a staff memo and reporting by Bloomberg and Sky News.

TS Anil, who has led the digital bank for nearly six years, will step into an advisory role.
Anil said he and the board’s search for a UK chief executive officer led them to meet Layfield. “Through our conversations, it became clear to me that she’d be a fantastic leader who could drive the business at the global level, into this next chapter and beyond,” he wrote in the memo. He added: “So while it wasn’t in my plan, I knew it was an opportunity I couldn’t miss for Monzo.”

In a statement to Bloomberg, Anil said: “It’s always been my belief that great leaders make way for others – it’s something that’s been done before at Monzo when the baton was handed to me, and it’s why the business will continue to go from strength-to-strength under Diana’s leadership.”

Sky News reported the leadership shake-up comes as Monzo steps up preparations for a public flotation, with investors hopeful of a valuation of up to £10 billion and London viewed by board members and investors as the most likely listing venue. The company has been working with Morgan Stanley on meetings with potential investors, Sky News said, adding that Monzo is considering a further sale of existing shares to allow early investors and employees to cash in.

Monzo has grown quickly under Anil. Customer numbers have risen from less than 4 million to more than 13 million, while staff have increased from around 1,000 to nearly 4,000, according to the memo. The bank reported a pretax profit of £60.4 million for the year through March, supported by a surging lending portfolio. It offers budgeting pots, savings and investment funds managed by BlackRock, and was valued at $5.9 billion in an employee share sale last year.

The company has strengthened its controls after regulatory scrutiny. In July, it was fined £21 million for failing to monitor financial crime risks. Monzo has diversified into investments, instant access savings, pensions and accounts for under-16s, and has explored acquisition opportunities in the US and Europe.

Gary Hoffman, chair of Monzo’s board, said: “TS has led with values and integrity throughout and has nothing but my gratitude and respect for all that he’s achieved and the brilliant foundations that have set Monzo up for the future.”

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