Monzo snaps up UK mortgage broker in first major acquisition
UK fintech Monzo has made its first major acquisition with a deal to snap up a digital mortgage broker in a bid bulk up its “all-in-one” superapp.
The digital bank announced on Friday it had snapped up Habito, a fintech firm which uses tech to accelerate the home-buying process with free online advice.
The deal – for an undisclosed amount – comes after Monzo notched 14m customers with 450,000 users tracking their mortgage through its Homeownership feature.
Habito’s cash at the bank and in hand stood at £1.3m as at December 2024.
Kunal Malani, chief banking officer at Monzo, described the deal as a “huge step” in the bank’s mission to “make money work for everyone”.
Ying Tan, chief executive of Habito, said: “I’m incredibly proud of what our team has built, and I couldn’t be more excited for this next chapter with Monzo.
“Together, we’ll transform what the mortgage experience feels like – effortless, empowering, and truly built around people.”
Monzo rallies into mortgage market
Monzo has stepped up its efforts in the mortgage market over the last year after releasing research earlier this year that showed UK homeowners have up to £5.3bn that they would like to put towards over-payments annually, but do not have the tools or knowledge to do so.
Such a move would be expected to save near £2.3bn on mortgage interest for UK homeowners a year.
The move also marks a major step in the banks challenge to peer Revolut, which has dominated the super-app space with expansions across its lifestyle reach including hotel bookings, mobile plans and crypto.
In October, Monzo announced the departure of chief executive TS Anil, who has led the bank for the last five years.
Anil will be replaced by Astrazeneca board member Diana Layfield.
Speculation had mounted that Anil was at odds with the fintech’s board regarding a public listing venue, with the top executives keen to stay in the City, whilst the former boss had ambitions in the US.