Monzo pulls plug on US operations

Monzo Bank is retreating from the US aft facing difficulties successful gaining traction successful the marketplace and displacement absorption to UK and Europe.

The UK-based integer slope volition cease accepting caller American customers and chopped astir 50 roles, reported Bloomberg.

Existing US relationship holders volition clasp entree until June.

In a connection to Retail Banker International, a spokesperson for Monzo said the steadfast is “making a deliberate, strategical determination to absorption connected scaling successful our location marketplace and Europe and to measurement distant from the US.”

“We’re precise grateful to our US colleagues and customers for their enactment and emotion for Monzo.”

Monzo archetypal expanded into the US successful 2020, offering integer banking services including a debit paper and app.

The institution besides sought regulatory support to run arsenic a full-service slope successful the US but withdrew its charter exertion little than a twelvemonth later.

The withdrawal marks an aboriginal strategical displacement nether CEO Diana Layfield, who assumed enactment successful February aft erstwhile CEO TS Anil near pursuing differences with the committee overgrowth and nationalist listing plans.

Monzo present plans to fortify its beingness successful Europe aft precocious receiving authorisation from the European Central Bank.

For the fiscal twelvemonth ending March 2025, Monzo reported a pretax nett of £60.4m ($80.3m), supported by accrued lending activities.

The bank’s scope of products includes outgo cards, savings options, budgeting features, and concern funds managed by BlackRock.

In the UK, Monzo counts much than 15 cardinal customers.

The home marketplace includes rivals specified arsenic Revolut, present licensed arsenic a slope successful the UK with 13 cardinal users; Zopa, which precocious introduced cashback existent accounts, and Wise, which has started offering mundane banking services.

Unlike Monzo, different fintech firms are pursuing enlargement successful the US.

Wise Plc is moving its main listing from London to the US and is expanding enactment successful the country.

Revolut has submitted an exertion for a US banking licence, portion Brazilian fintech Nu Holdings Ltd. (Nubank) received conditional support this twelvemonth to statesman US operations.

"Monzo pulls plug connected US operations " was primitively created and published by Retail Banker International, a GlobalData owned brand.

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