British digital banks Monzo and Starling Bank have both reported significant profit increases, with Monzo achieving its first profit. However, concerns arise as high inflation and interest rates threaten the business models of 'narrow banks'. Starling Bank's profit surged by 55% due to higher rates, but it also noted a rise in bad loans. Additionally, UK regulators have imposed restrictions on a fintech firm owned by Uruguay's first-ever billionaires as part of a broader crackdown on payments firms.