The UK-based fintech and financial services company has hired Interpath Advisory to help with the internal reorganization. As a consequence, its business-facing Platform-as-a-Service (PaaS) unit XYB and consumer-facing money app will now function as two distinct businesses.

When Monese introduced XYB to the banking industry last year, it was billed as a "coreless" platform with eight "foundational engines," a partner ecosystem, and microservices architecture that would enable it to offer banks 172 different services.

The fintech claims its business "has developed in two different directions: the original B2C business and now the new and fast growing B2B PaaS business," confirming the separation with FinTech Futures.

In an effort to "maximise shareholder value," Monese says that it is "exploring the best organisational and capital structure for the company," but it does not specify when the restructuring is expected to be finished.

One splits into two.

Even if a timetable isn't available, a retrospective of Monese's development since its establishment in 2015 may provide insight into the company's future goals.

The fintech last stated that it was leveraging $208 million in total investment in September 2022, helped along at the time by a $35 million capital infusion from HSBC. After thereafter, it gave the XYB solution to Zing, an app developed by HSBC for international payments that was released in January of this year.

However, Monese was losing money, as seen by the $37.6 million deficit it reported for 2022; the fintech mostly ascribed this amount to its increasing direct expenditures.

At the time, CEO Norris Koppel stated that Monese's ability to continue operating in its current form would be negatively and possibly severely affected if it were unable to secure sufficient amounts of new funding to finance its current operations and growth plans.

Just one month later, a second blow was dealt when the Swedish investment group Kinnevik, which had held a 21% share in the fintech since 2018, declared that it had written off "the entire carrying value" of its Monese investment in an effort to concentrate on its portfolio of "highest-conviction companies."

This suggests that Koppel's need for additional financing is unlikely to be met, and that the best course of action would be to accommodate the "two different directions" that its activities are inevitably taking.