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Monzo is set to accede to requests from top shareholders for an expanded role for TS Anil when he steps down as chief executive next month, after the announcement of his departure sparked an investor revolt.
In October, the digital bank made the surprise announcement that Anil, who has led the company for nearly six years, will step down as chief executive in February and become replaced by Diana Layfieldformer Google executive.
The initial plan was that Anil would move into an advisory role and leave the board.
However, two people familiar with the discussions said that after deliberations with shareholders, Monzo Anil now intends to continue with a wider remit than initially planned and that he is likely to retain a seat on the board.
They added that Anil’s exact role and title are yet to be finalised, and plans may change.
The move to a series of plans shows that Monzo is close to coming to terms with angry investors. who is lobbying the group was intense for months.
The board asked Anil to step aside amid concerns about the pace of its international growth and concerns about his commitment to stay in fintech after it floats, the FT previously reported.
However, the departure triggered a backlash from investors who felt blindsided and were happy with Anil’s performance.
A group representing the majority of shareholders – including venture capital firms Accel and Iconiq – campaigned to reinstate Anil and oust Monzo’s chair, Gary Hoffman. However, these demands were dropped after negotiations between the two sides, people familiar with the discussions said.
Anil, a former Visa executive who joined the UK startup in 2020 to lead the US push, was elevated to the chief executive role within months when founder Tom Blomfield resigned due to fire.
The expansion in the US took place in 2021 when it became known that the regulators not approve a banking license and Anil decided to focus on the bank’s home market.
Under his leadership, Monzo tripled the number of its customers to 13 million. It reported a record £60.5mn in pre-tax profit in the year to March, with revenue of £1.2bn. Its customer base is almost exclusively in the UK.