Monzo adopts SAP and Google Cloud for digital transformation

This transformation is driven by strategic partnerships with SAP and Google Cloud, enabling Monzo to leverage cutting-edge technologies and data analytics.

By integrating SAP’s ERP solutions and Google Cloud’s advanced data analytics, Monzo aims to streamline its finance IT estate and build a robust data analytics ecosystem, reducing manual work, improving data reconciliation, and enhancing reporting capabilities.

Monzo & Google Cloud: a data-driven partnership

Since its inception in 2015, Monzo has been a pioneer in cloud adoption within the banking sector. Today, the digital bank serves over nine million personal customers and 450,000 business customers. Monzo’s collaboration with Google Cloud has been instrumental in building a high-performance data analysis infrastructure that empowers teams across the organisation to make data-driven decisions.

This partnership has enabled Monzo to leverage advanced data analytics, revolutionising its banking services and maintaining a competitive edge in the fintech industry.

Building a high-performance data analysis hub

At the core of Monzo’s data strategy is Google Cloud’s BigQuery, a serverless and cost-effective enterprise data warehouse. With nearly 19 petabytes of data and more than 2,000 data models stored in BigQuery, Monzo can process and analyse massive datasets with unprecedented speed and efficiency. This capability allows the bank to run complex pipelines and data modelling tasks, surfacing detailed customer and business insights that drive innovation and improve services.

Suhail Patel, Senior Staff Engineer at Monzo, highlights the importance of this data infrastructure: “We empower all of our engineers and technical staff with BigQuery data across the organisation. With BigQuery, we can have all the data we need to effectively make business-critical decisions and analyse the impact of complex incidents when something goes wrong. For us, this is like having a superpower.”

Enhancing customer experiences with machine learning

Monzo also employs Looker, a business intelligence and data visualisation tool that sits atop BigQuery. This combination allows teams to access, analyse, and act on up-to-date, multi-terabyte datasets in minutes. From tracking key diversity and inclusion goals to monitoring profitability, Looker democratises data access across the bank, ensuring that insights are available to those who need them most.

Furthermore, Monzo leverages machine learning models built and trained using Google Cloud’s Vertex AI to enhance various customer-facing features. These models play a crucial role in protecting customers from fraud, making lending decisions, and experimenting with customer demand forecasting. This data-driven approach not only helps Monzo manage risk more effectively but also allows it to offer more personalised and competitive financial products to its customers.

SAP integration for operational excellence

Meanwhile, Monzo announced today (July, 30) another partnership; its strategic integration of SAP’s Business Technology Platform (BTP) and GROW with SAP for Scaleups.

This move is designed to streamline Monzo’s finance IT estate, enabling the bank to fully embrace the benefits of the cloud, drive innovation, and meet customer and market demands.

Streamlining operations with SAP S/4HANA Cloud

The adoption of SAP S/4HANA Cloud across Monzo’s business is a pivotal step in reducing manual work, improving data reconciliation, and enhancing reporting capabilities. This scalable SAP service, deployed via a secure and highly resilient cloud-based infrastructure platform, allows Monzo to pull and reconcile data from different areas of the business, thereby improving insights and reporting. This integration supports Monzo’s rapid growth, allowing it to adhere to regulatory requirements and maintain industry best practices.

Wesley Doyle, Head of New Business Growth Markets, UKI, emphasises the significance of this integration: “Since it started in 2015, Monzo has been on a meteoric rise. Sustained growth requires the right blend of forward-thinking management, cloud-based technology, and strategic financial planning. Monzo has all these elements in place and with the speed, flexibility, and agility of the cloud, it will be able to accelerate its growth, react quickly to external trends, and continue to innovate.”

GROW with SAP is designed to support fast-growth organisations by combining a comprehensive suite of integrated modules covering critical functions like finance, sales, marketing, procurement, and HR into a single platform. This enables Monzo to streamline operations and maintain full control of its finance and sourcing processes as they grow. The transformation programme, supported by systems integrator NTT DATA Business Solutions, provides Monzo with the flexibility and backend support needed to meet current legal mandates and regulatory trends in the UK and beyond.

Ben Foster, Sales Director, NTT DATA Business Solutions UK&I, adds: “We are thrilled to partner with innovative businesses like Monzo. NTT DATA Business Solutions understands the advantages and value of deploying SAP technology in the cloud. Monzo now has access to a readily deployable cloud ERP system that incorporates the latest industry best practices and ensures continuous innovation.”

Synergy of SAP and Google Cloud

The combined use of SAP and Google Cloud technologies represents a significant milestone in Monzo’s digital transformation journey. By integrating SAP’s comprehensive suite of ERP solutions with Google Cloud’s advanced data analytics capabilities, Monzo is well-positioned to enhance operational efficiency and drive innovation.

This synergy allows Monzo to streamline its operations, reduce manual tasks, and improve overall efficiency. The cloud-based infrastructure provides the scalability and flexibility needed to support Monzo’s growing customer base and expand into new markets. Additionally, the advanced analytics capabilities enable Monzo to gain valuable insights, drive data-driven decision-making, and offer personalised banking solutions.