Monobank Founders Shut Down Koto Project in Britain
Date: 2023-12-02 Author: Dima Zakharov Categories: IN WORLD
Challenges Leading to Closure
Fintech Brand, managing Ukraine's popular monobank, decided to close its British venture known as Koto. Mikhail Rogalsky, the company's head, revealed the underlying reasons behind this move. Initially viewed as a strategic location due to its proximity to Ukraine and a credit card market akin to what they were accustomed to, Britain posed initial promise for expansion. However, licensing hurdles prolonged the process, taking two years instead of six months. On top of that, the onset of the coronavirus pandemic led to a near disappearance of the lending market.
Roadblocks and Adaptation
It wasn't until the spring of 2021 that operations could resume somewhat normally. Rogalsky admitted to missteps in their product model after about six months of reworking, leading to a pivotal decision to create a credit card. Renamed as The Credit Thing due to naming conflicts, initial progress seemed positive compared to Koto. However, setbacks ensued with failed investment rounds and the British financial crisis, stalling The Credit Thing's growth by autumn 2022.
Insights into Koto
Koto, a fintech startup, was spearheaded by monobank founders and former PrivatBank executives Oleg Gorokhovsky, Dmitry Dubilet, and Mikhail Rogalsky. It operated as a banking app, primarily focusing on virtual card-based lending under the Mastercard system. Despite its ambitions, the project faced setbacks from the outset. In May 2019, Dmitry Dubilet, a co-founder of monobank, announced Fintech Brand's intention to launch a monobank equivalent in emerging markets. Later, in July, monobank secured a financial license in the UK, paving the way for Koto's March 2020 test launch in Britain.
