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British digital bank Monzo in talks to buy Nordic lender Lunar
Global Banking & Finance Review®
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LONDON (Reuters) – British digital bank Monzo is in early stage discussions about a potential acquisition of Nordic lender Lunar Group, a person familiar with the matter told Reuters.
LONDON (Reuters) – British digital bank Monzo is in early stage discussions about a potential acquisition of Nordic lender Lunar Group, a person familiar with the matter told Reuters.
Bloomberg News reported the talks earlier on Wednesday, adding that Monzo had studied other potential targets to help it expand in Europe.
Lunar and Monzo declined to comment.
Digital banking bosses have predicted a spate of deals this year, after a combination of rate hikes and investor caution made it harder for digital finance firms to raise new funds.
Monzo is one of Britain’s highest-profile financial technology companies, with 7.4 million customers. But since its launch in 2015, it has yet to turn a full-year profit, unlike some rivals such as Starling.
In the year to February 2023, Monzo’s annual loss got marginally smaller.
Denmark-based digital bank Lunar says it has 650,000 customers across its home market, Sweden and Norway. It raised 35 million euro ($38.56 million) in February, according to its website.
($1 = 0.9077 euros)
(Reporting by Iain Withers and Elizabeth Howcroft; editing by Sinead Cruise and Devika Syamnath)
Digital banking refers to the use of digital technology to provide banking services, allowing customers to conduct financial transactions online or through mobile applications without the need for physical bank branches.
An acquisition is a corporate action in which one company purchases most or all of another company's shares to gain control of that company, often to expand its market presence or capabilities.
A financial technology company, or fintech, is a business that uses technology to provide financial services, such as payment processing, lending, and investment management, often aimed at improving user experience and efficiency.
A loss occurs when a company's expenses exceed its revenues during a specific period, indicating that the business is not generating enough income to cover its costs.
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