Monzo withdraws US licence application after two years of negotiation
UK digital bank Monzo has abandoned its attempts to gain a US banking licence more than two years after it first started negotiations.
Monzo is backing away from a full US licence
Monzo launched in the US in June 2019 and kicked off a full application with the Office of the Comptroller of the Currency (OCC) in April 2020.
The bank also hired former Visa executive TS Anil to lead its US business in 2019, with the new hire describing its licence application as a “significant milestone”.
Anil is now CEO, having taken over from founder Tom Blomfield, who stepped back in January.
Monzo writes in a statement about its US licence: “Following recent engagement with the OCC, we’ve decided to withdraw our banking license application for our US start-up.
“There are many routes to market we’re exploring that have been successful for other market entrants who are now major players.”
The UK bank reported annual losses of £115 million in August, and also revealed an ongoing investigation by the Financial Conduct Authority (FCA).
The bank reported 200,000 paid subscribers, and that an extra one million new customers joined Monzo over the past 12 months.
It says deposits are up 124%, from £1.4 billion to £3.1 billion.
