Monzo Weighs Reapplying for U.S. Banking Licence Amid Regulatory Shift #
Neobank Monzo is reportedly evaluating a renewed attempt to secure a U.S. banking licence—four years after withdrawing its first application when a skeptical regulator hinted at likely rejection. Sources say Monzo’s leadership believes the current deregulatory momentum in Washington increases the odds of approval
Monzo had abandoned its original bid following disagreements with the U.S. Office of the Comptroller of the Currency (OCC), citing regulatory hurdles and misalignment with its growth strategy. At that time, it continued serving U.S. customers via partner banks under its digital banking model.
Under the renewed plan, Monzo would use the licence to expand lending, deposit-taking, and broader banking services in the U.S., moving beyond the limitations of third-party partnerships. The push reflects a broader trend of European fintechs doubling down on U.S. expansion as regulatory headwinds ease.