UK digital bank Monzo is weighing a fresh attempt to secure a US banking license, four years after abandoning its previous bid when talks with regulators stalled, according to the Financial Times.
Executives at the London-based fintech are exploring the move as part of a renewed push to accelerate growth in the American market. The company believes a second application has a greater chance of success with the U.S. Office of the Comptroller of the Currency (OCC) in light of the U.S. government’s shift toward deregulation, sources told the news outlet.
Both the OCC and the Federal Deposit Insurance Corp. (FDIC) have rolled back guidance that had previously complicated licensing deals for new entrants. The policy changes have encouraged several fintech firms to pursue charters that would allow them to operate more broadly across the United States.
Last week, London-based Checkout.com said it would “double down” on its U.S. expansion after securing a limited-purpose bank charter from Georgia regulators, enabling it to settle retail payment transactions. Brazilian neobank Nubank also began an application for a national bank charter, signaling a wave of fintech interest in the U.S. market.
For Monzo, a license would provide direct access to U.S. deposits and customers at a time when growth has slowed in the UK. Rival firms Revolut and Starling have reportedly considered acquiring existing U.S. banks to gain a national footprint, the Financial Times said.
Monzo withdrew its first US license application in 2021 after regulators signaled it would be unlikely to win approval. The move came amid a steep valuation drop during the pandemic and scrutiny over potential anti–money laundering breaches. With about 13 million global users, Monzo currently serves U.S. customers through partner banks.
Read more at the Financial Times