Monzo co-founder Tom Blomfield has been removed as a director, as part of his transition into a new role and the appointment of TS Anil as the bank’s CEO.
CNBC tech correspondent Sam Shead took to twitter to explain a Monzo source has explained this is just part of Blomfield’s move to president of the company. His place on the board is being taken by Anil and the bank’s CFO, Alwyn Jones.
Furthermore, Blomfield is still going to be invited to board meetings and will keep voting rights based on the shares he holds. How big of a percentage he owns is not clear. Shaed explained that last year Blomfield had a 5% to 10% stake in Monzo, but recently sold some of his shares during a funding round.
The Telegraph also reported that Blomfield’s decision for this move was so he could spend more time improving Monzo’s strategy, rather than handling regulatory requirements.
Blomfield announced he would be moving to the role of president back in May so he could focus on the long-term vision of the bank and doing the work he enjoys more. Speaking to TechCrunch he said, “I went through all the stuff I love about my job, and it was all the stuff I did in the first two or three years,” Blomfield told TechCrunch. “And I went through all the stuff that drains me, and it’s all the stuff I’ve done in the last two years, honestly. Things I think TS is awesome at.”
Monzo, like many businesses, has had a turbulent year following the Covid-19 pandemic. In March, Blomfield stated he would not be taking a salary for a year and a number of the board members would be taking a 25% pay cut.
The extent of Monzo’s struggle during the pandemic were highlighted after it suffered a down round in June, which resulted in its valuation dropping by 40% – going from $2bn to $1.24bn. Reports suggested several investors were quite tough on the challenger bank in a hope to lower the price on shares.
To help the business survive, it has taken a number of measures. It recently fired 120 members of its staff, closed its Las Vegas office and lose the 165-strong team, and has reportedly furloughed 165 members of its UK team. All of this trouble even sparked rumours the bank was going to go bust, but this was not true.
In the months leading up to the coronavirus lockdown, Monzo looked to be getting stronger, with a February announcement claiming it would 500 new staff and launch a new premium service.
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