UK fintech Monzo considers US banking licence reapplication-report

Monzo is reportedly planning a fresh application for the US banking licence, four years after its previous attempt was halted due to regulatory challenges.

The UK-based neobank aims to become a licensed lender in the US to revive its expansion plans there, according to a Financial Times (FT) report, citing two sources.

Monzo is anticipating a more favourable reception from the Office of the Comptroller of the Currency (OCC) amid recent deregulatory measures by the Trump administration, the sources added.

In 2021, Monzo withdrew its application for a US banking licence after the OCC said it was unlikely to be approved.

At that time, the company was dealing with a significant devaluation after the pandemic and was under a potential anti-money laundering probe, according to the media outlet’s report.

OCC, along with the Federal Deposit Insurance Corporation, has recently removed certain guidelines that previously complicated banking deals.

This move has potentially cleared the path for Monzo’s renewed efforts.

If successful, Monzo would join other fintech companies expanding in the US market.

London-based Checkout.com recently announced its plans to enhance its US presence, and Brazilian neobank Nubank has initiated the process for a US national bank charter.

In the year ending March 2025, Monzo reported a 48% increase in revenue to £1.2bn and pre-tax profits of £60.5m.

In July this year, Monzo was fined £21m ($28.5m) by the UK’s Financial Conduct Authority (FCA) for financial crime failings.

The regulator alleged that Monzo failed to maintain adequate anti-financial crime controls from October 2018 to August 2020.

The company was also found to have violated requirements by opening accounts for ‘high-risk’ customers, despite being under an FCA directive to halt such actions.

"UK fintech Monzo considers US banking licence reapplication-report" was originally created and published by Retail Banker International, a GlobalData owned brand.

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