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Monzo founder Tom Blomfield steps down from board

James Cook
Monzo co-founder Tom Blomfield - Geoff Pugh

Monzo co-founder Tom Blomfield has left the digital banking start-up’s board to make way for the company’s new chief executive.

Mr Blomfield, who co-founded the business in 2015, had served as the company’s chief executive until earlier this year when he announced he would move to a newly created role as president of the banking start-up.

TS Anil, who had been hired as the company’s US chief executive, now also runs the company’s UK business as chief executive.

Insiders say Mr Blomfield’s departure from the board was planned as part of his move to the new president role. They said Mr Blomfield made the decision to switch roles so that he could focus more on the company's strategy rather than meeting its regulatory requirements.

Mr Blomfield owns around 5pc of Monzo's shares, valuing his stake in the company at £62.5m.

The company, which has grown to more than 4.2 million customers, has two board seats for its chief executive and chief financial officer along with seats for major investors and other board members.

Mr Blomfield is still expected to attend board meetings, insiders said, but will not be given an official board observer role.

A Companies House filing by the start-up shows Mr Blomfield left its board on June 17.

Monzo announced in June that its valuation had dropped from more than £2bn to around £1.25bn as part of a new round of funding. The company raised £60m from investors including Swiss fund Reference Capital and Vanderbilt University.

The company’s most recent accounts, published last year, showed that its losses had risen to £47.2m. Monzo’s next annual report is expected to be published in the coming weeks.

Monzo will lay off up to 80 employees this year in an attempt to trim its losses. Mr Blomfield has also agreed to waive his salary for the next year.

The Telegraph reported in April that Monzo had applied for a US banking licence, leapfrogging rival challenger bank Revolut which has yet to file its application.

It could take up to two years for Monzo’s licence to be approved by the US Office of the Comptroller of the Currency.