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Monzo is set to concede to demands 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 triggered an investor rebellion.
In October, the digital bank made the surprise announcement that Anil, who has led the company for nearly six years, would stand down as chief executive in February and be replaced by Diana Layfield, a former Google executive.
The initial plan was for Anil to move into an advisory role and to leave the board.
However, two people familiar with the discussions said that after deliberations with shareholders, Monzo now intended to keep Anil on with a broader remit than initially planned and that he was likely to retain a board seat.
They added that Anil’s exact role and title have not yet been finalised, and that the plans could change.
The shift in succession plans indicates that Monzo is close to striking a deal with the disgruntled investors who have been lobbying the group intensely for months.
The board had asked Anil to step aside amid concerns about the pace of its international growth and concerns about his commitment to stay at the fintech after it floated, the FT previously reported.
However, the departure triggered a backlash from investors who felt blindsided and were pleased with Anil’s performance.
A group representing a majority of shareholders — including the venture capital firms Accel and Iconiq — had campaigned to reinstate Anil and remove Monzo’s chair, Gary Hoffman. However, these demands have been dropped after negotiations between the two sides, the people familiar with the discussions said.
Anil, a former Visa executive who joined the UK start-up in 2020 to lead its US push, was elevated to the role of chief executive within months when founder Tom Blomfield stepped down due to burnout.
The US expansion faltered in 2021 when it became clear that regulators would not approve a banking licence and Anil decided to focus on the bank’s home market.
Under his leadership, Monzo has trebled its number of customers to 13mn. It reported a record £60.5mn in pre-tax profits in the year to March, with revenues of £1.2bn. Its customer base is almost exclusively in the UK.