Monzo has paid out approximately £29.5 million in referral bonuses its last financial year, as the challenger bank aims to attract new customers.

This represents a threefold year-on-year increase, far outpacing its 25 per cent customer growth over the same period.

The digital-first fintech pays £10 to £50 whenever a customer recruits a friend to using their referral code, with both the existing and new customer receiving a randomised amount.

In its annual report, Monzo stated that 79 per cent of new customers in FY2026 were acquired through word of mouth, which includes referrals. The bank added that its referral scheme generates high customer engagement and tends to result in customer acquisition at a lower overall cost than than other channels.

Monzo also invested heavily in promoting its offerings throughout the past financial year, with its overall marketing budget for FY2026 increasing 46 per cent to £143.1 million.

The FT reported that Monzo may be increasing customer numbers ahead of an initial public offering (IPO), but added that chief executive Diana Layfield has said the firm is “not in a rush to float”.

Monzo announced Layfield as the successor to TS Anil in October 2025. Anil, who backed plans for an earlier IPO according to the FT, was initially due to lose his board seat but has since been permitted to keep it following an investor revolt.

In March, Monzo reached 15 million customers, with approximately one million aged 16 or younger. The neobank is also expanding in Europe, having secured an Irish banking license and announced a Spanish expansion.

Monzo cited its renewed focus on Europe, as well as UK growth goals, as key factors in its April decision to close its US operations and shut down US accounts by June, resulting in 50 redundancies.

Earlier this month, EY published a report finding that while UK challenger banks continued to grow in 2025, they are now at an “inflection point” where economic headwinds are beginning to slow the expansion of loans and deposits.

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