Pockit, a financial services provider targeting underserved consumers in the UK and Europe, has recorded nearly £4 million from dormant customer accounts as income, according to its latest financial statements. The payments relate to unclaimed balances from accounts that have been formally closed, primarily due to suspected financial crime or prolonged inactivity.

The company, which also owns Monese—an app-based alternative to traditional banking—determined that the obligation to repay these funds had expired after six years without any claims from account holders. Pockit noted it made “reasonable efforts” to return the balances before recognising them in its accounts, stating that any right of repayment was extinguished under applicable regulations.

Unlike conventional banks that participate in the government-backed dormant assets scheme, Pockit does not hold a banking licence and is therefore ineligible to join the scheme. Established to reunite customers with their unclaimed funds after 15 years of dormancy, the dormant assets initiative redirects funds to social and environmental causes if owners cannot be located, while preserving their right to reclaim the money. Over the past 15 years, the scheme has returned approximately £1.6 billion.

Pockit offers a range of financial products, including prepaid spending cards, current accounts, cash deposits, and loans, targeting individuals who are often excluded from mainstream banking services. The company serves nearly three million customers collectively with Monese.

The recognition of these dormant balances as income has drawn criticism from consumer groups. Andy Agathangelou, founder of the Transparency Task Force, described the accounting practice as “nothing short of a scandal” and called for a review by the Financial Conduct Authority. Agathangelou argued that it was inappropriate for a financial inclusion service to profit from funds belonging to the very individuals it seeks to assist.

In response, Pockit maintained that, as an electronic money institution not covered by the dormant assets scheme, it complied with relevant laws in recognising unclaimed funds. The company emphasised that customers either did not claim their funds or chose not to donate them to charity, leaving the remaining balances to be recorded in its financial reports.

Founded in 2014 by Virraj Jatania, Pockit primarily serves customers such as gig economy workers and others employed in sectors like logistics and catering. These groups often face barriers to accessing traditional banking services due to factors such as lack of fixed addresses or low credit scores, contributing to their classification as “financially excluded.” The company’s customer profile, characterised by higher financial crime risk, has resulted in some complaints regarding account suspensions and closures in compliance with anti-money laundering regulations.

Pockit reported sales growth to £26.3 million in 2025, up from £7.4 million the previous year, largely driven by its acquisition of Monese. However, pre-tax losses also increased from £9.2 million to £13.6 million. In 2026, the company raised £18.4 million in funding, including a £13.4 million equity investment led by Puma Growth Partners, its largest individual shareholder.