Monzo has become the first digital bank to count one million British businesses among its clients, having launched the service in 2020 and seeing numbers double in just the past two years.
Traditionally, the so-called big four have dominated business banking in the UK, with high street heavyweights Barclays, HSBC, NatWest and Lloyds long established as go-to options.
However, the rise of online banking, along with expectations of agility and specific needs for SMEs or newer firms, has allowed digital banks to challenge heavily and a host of options now exist for organisations to choose from.
Starling, Revolut and Tide all offer business-specific services, for example, though while Tide serves around 900,000 small and medium businesses in the UK, it is a financial services provider rather than a regulated bank.
Monzo on the other hand, is a British bank, and is now the first to break through the million businesses as customers barrier – including at least one in every one of the UK’s 121 postcode areas.
The digital burden on British businesses has increased in recent years, with this year’s push from HMRC towards Making Tax Digital another such example.
Figures show one in six UK businesses now bank with Monzo, including one in five newly formed businesses. Meanwhile, more firms used the Current Account Switch Service to move banks to Monzo than to any other business bank in 2025.
Jordan Shwide, general manager of Monzo Business, said: “Reaching one million customers is an incredible milestone and a testament to the trust that business owners have placed in Monzo over the past six years.
“When we launched Monzo Business in 2020, our ambition was simple: to build a bank that genuinely made running a business easier. We’ve focused on solving the everyday challenges business owners face, from getting paid faster and setting money aside for tax to managing expenses and staying on top of their finances.”
Data from Monzo customers suggests close to two-thirds of SMEs (61 per cent) ask for their business bank to offer tools which make make running finances easier, beyond just basic account offerings, while three in five (61 per cent) also say running a business feels more complicated now than it was in 2020.
The rapid digitisation of British businesses across that period can also be seen in nearly two-thirds (63 per cent) acknowledging they started using more digital tools and services during the pandemic, while an even higher number (68 per cent) say they rely more on digital banking now than they did before 2020.
Monzo has an an estimated 16m customers in total, including personal accounts.
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