Monzo has reportedly considered a renewed attempt to obtain a US banking licence, four years after shelving a similar effort that failed to gain traction with American regulators.
The move would mark a return to one of the UK neobank’s most significant international ambitions, as it looks to strengthen its presence in the world’s largest banking market. The company previously abandoned its application in 2021 when the Office of the Comptroller of the Currency (OCC) indicated that approval was unlikely. At that time, Monzo had seen its valuation fall sharply during the pandemic and faced scrutiny over potential anti-money laundering rule breaches. The fintech subsequently narrowed its focus to the UK, where it reported revenue growth of 48% to GBP 1.2 billion in the year to March, alongside pre-tax profits of GBP 60.5 million according to the Financial Times.
US market draws renewed interest from fintechs
According to people familiar with the matter cited by the Financial Times, Monzo is exploring a new submission to the OCC after regulatory conditions in the US became more favourable. Changes implemented in recent years by federal banking agencies, including the OCC and the Federal Deposit Insurance Corporation, have eased earlier restrictions that complicated licensing and partnership deals for non-traditional lenders.
If Monzo proceeds, it would join a growing list of fintechs expanding in the United States. Checkout.com recently secured a limited-purpose bank charter from the state of Georgia, enabling it to process settlements directly for retailers, while Brazil’s Nubank has begun its own application for a national bank charter. UK peers Revolut and Starling have also explored acquiring existing American banks to support nationwide lending operations.
Monzo, which has around 13 million users worldwide, continues to serve US customers through partner banks. Representatives from the company declined to comment on the possibility of a renewed application.
