Online bank Monzo drops plans for US banking licence

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Digital bank Monzo has withdrawn its application for a US banking licence after it failed to reach agreement with the US regulator following two years of negotiations.


“Following recent engagement with the OCC (Office of the Comptroller of the Currency), we’ve decided to withdraw our banking licence application for our US start-up,” Monzo said in a statement.


The news was first reported by the Financial Times, which said the bid was abandoned after it became clear the OCC would not support the loss-making bank’s bid.


Monzo still plans to expand its US venture, which it launched in 2019, and will invest further in Britain.


“There are many routes to market we’re exploring that have been successful for other market entrants who are now major players,” it said.


In its earnings release in July, the bank revealed losses of GBP130mln for the year to February 2021. It also disclosed that it is facing a probe into potential breaches of anti-money laundering laws, with UK financial regulator, the FCA, investigating potential civil and criminal liability.


READ: Monzo launches ‘buy now, pay later’ product

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