The Distillery #8: Monzo's £21m FCA Fine & AI Goes Deep Sea Spying

July 2025

Fintech & Payments

Juniper Research

Analyst House

In this edition:

• Monzo’s £21 million FCA fine exposes long-standing risks in digital banks
• AI-powered satellite tech is gearing up to protect critical underwater infrastructure from cyber threats
• SoftBank and Ericsson launch 7GHz trials as 6G development ramps up
• Our latest insights on CCaaS voice growth, domestic card schemes, and writing a Future Digital Awards entry that really impresses

FINTECH & PAYMENTS

Monzo Fined £21 Million for Fake Address Failings

Monzo has been hit with a £21 million fine by the UK's Financial Conduct Authority (FCA) after failing to prevent thousands of high-risk accounts from slipping through the net. Some registered with clearly fake addresses such as 10 Downing Street or even Monzo’s own HQ.

The regulator flagged "serious and persistent weaknesses" in Monzo’s approach to customer risk and identity verification; raising urgent questions about how well fast-scaling neo-banks are balancing growth with governance.

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🟣 These aren’t new issues. The regulator first flagged similar gaps back in 2017, when Monzo allowed transactions before completing basic customer due diligence and lacked enhanced checks for risky users. The latest fine shows those vulnerabilities were never properly fixed.

🟣 Monzo’s onboarding relied on selfie ID checks with minimal address verification. But as we’ve noted before, verifying addresses doesn’t have to be cumbersome; combining AI with database checks enables fast, accurate assessments without slowing the customer journey.

🟣 For digital banks moving at speed, this is a wake-up call. Investing early in robust, multi-layered identity verification is key to scaling safely. That includes dynamic risk scoring, enhanced monitoring for suspicious behaviour, and regular internal audits - if not for the regulators, then to protect customers’ trust and financial security.

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IOT & EMERGING TECHNOLOGY

AI Hunter Killers Are Coming for the Deep’s Biggest Cyber Threats

Dutch geoscience leader Fugro has teamed up with software company DTACT and aerospace AI specialist Ubotica to roll out a new intelligence platform designed to monitor underwater pipelines, communication cables, and other subsea infrastructure.

By tapping into a range of data sources and AI-powered satellite insights, the platform will help governments spot suspicious maritime activity that could threaten critical infrastructure.

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🟣 By embedding AI directly onto satellites, operators can quickly spot and respond to threats such as underwater sabotage, illegal tapping of communication cables, or suspicious vessel activity near critical infrastructure. This kind of rapid detection is a game-changer; helping prevent damage and disruption before problems escalate.

🟣 Our latest research shows the government and defence sectors will be the biggest users of satellite IoT services; driving $1.7 billion in revenue by 2030 - or to put it another way, a fifth of the whole market.

🟣 Quantum-secure cybersecurity is on the horizon. With so many potential entry points, the industry is shifting towards quantum-secure technologies such as quantum key distribution (QKD) to stay ahead of current and future cyber threats. Satellite operators should start investing in these advanced solutions now, while QKD providers have a real opportunity to lead the way in securing the next generation of satellite networks.

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TELECOMS & CONNECTIVITY

Softbank & Nokia Trial 7GHz Band in Preparation for 6G

SoftBank and Ericsson have kickstarted an outdoor trial of the 7GHz band; marking early moves as the telecoms industry gears up for 6G. While the technology standards are still being finalised, this trial tests one of the key frequency bands under consideration for future 6G networks.

The setup includes three pre-commercial base stations running alongside existing commercial 5G sites; mirroring the approach used when 5G was first trialled alongside LTE networks.

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🟣 6G’s value lies in adaptability, not just speed. Early trials may focus on throughput and latency, but long-term success will depend on how flexibly networks can adapt to varying conditions and demands from consumer apps to complex enterprise needs. That means smarter, modular architecture and integration with non-cellular technologies will be just as critical as raw performance.

🟣 The traditional pay-per-connection model is unlikely to hold in the 6G era. Instead, we expect monetisation to revolve around enterprise-centric use cases, from multiple simultaneous connections to dedicated network slices and bespoke service tiers. This won't hurt demand, though. Our latest forecasts have 6G connections surging from just 34.6 million in 2029 to almost 900 million by 2032.

🟣 Sustainability will shape 6G priorities. With growing pressure to reduce emissions, 6G development will need to balance performance with energy efficiency. Expect future trials to explore low-power hardware, AI-led optimisation, and smarter resource allocation to make ultra-fast networks greener.

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ICYMI

Signal Boost

Every issue, we highlight the research, blogs, infographics, and insights we're especially proud of.

📞 Voice on CCaaS is booming despite falling call volumes overall. Brands need to move quickly to leverage AI-powered voicebots before they get left behind.

💳 Domestic card schemes are pushing back against Visa and Mastercard. Here's how Africa’s pan-continental network and Denmark’s Dankort are shaking up the system.

💰 But do we even need cards? Stripe's Pay by Bank is emerging as a compelling alternative to plastic for businesses and consumers. Here's where it's excelling - and falling behind.

🏆 Our fintech and payments awards close in less than a month, so we've written a short guide on how to write an application that wows our judges. Incidentally, you can find the entry form here.

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