Home Banking Monzo abandons US banking license bid

Monzo abandons US banking license bid

British digital bank Monzo, a loss-making bank has withdrawn its application for a U.S. banking licence. This is after more than two years of negotiations with regulators. Monzo gave a statement that following recent engagement with the OCC (Office of the Comptroller of the Currency), they have decided to withdraw their banking license application for their U.S. start-up. This bank’s US venture was launched in 2019. Further they would invest in Britain. The bank stated that it was still committed to growing that U.S. venture.

Adding to this, the bank said that there are many routes to market, that, they are exploring that have been successful for other market entrants. And those are now major players. This decision was first reported by the Financial Times. Monzo has attracted five million customers since launching in 2015. Its annual losses are widening to 130 million pounds in the year to February. The bank‘s auditors have warned its losses cast uncertainty over its ability to continue. The firm also faces a regulator investigation into potential breaches of anti-money laundering rules.

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