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Monzo in talks to merge with Nordic rival Lunar – report

Monzo Lunar
Image credit: Lunar

British challenger bank Monzo and Nordic competitor Lunar are reportedly in talks over a possible merger between the two fintech businesses.

The possible international merger between Monzo and Lunar was first reported by Bloomberg and discussions are said to be at an early stage. Monzo declined to comment when approached by UKTN.

”We do not comment on market rumors,” Jenny Menckel, head of PR and external communication at Lunar told UKTN.

A deal would significantly expand both challenger banks’ presence across Europe. Lunar has over 650,000 users across Denmark, Sweden and Norway. Monzo has 7.5 million customers in the UK.

London-headquartered Monzo hit monthly profitability for the first time in January and February this year and reported annual revenue of £355.6m for 2022.

Speaking in the 2023 report, Monzo chair of the board Gary Hoffman hinted at the bank’s European expansion plans: “Our ambitions also go beyond the UK and in the next phase of our growth we’ll re-focus on growth in the US market with a new leader at the helm. And closer to home, we’ll be exploring opportunities to bring Monzo to more people across Europe.”

Lunar secured €35m at the start of the year from investors.

“Backed by the new capital, we can continue our expansion in the Nordic region, offer new and better digital banking solutions to our customers, and expand our position as the leading challenger in the Nordic banking market,” said Ken Villum Klausen, CEO and founder of Lunar Group, on the fundraise.