Monzo withdraws its application for US banking licence

Monzo has withdrawn its application for a US banking licence after it was told by regulators it was unlikely to be approved.

According to Financial Times, Monzo was hoping that its experience of securing a full banking licence in the UK would help it succeed where others had struggled, but its bid to the Office of the Comptroller of the Currency was unlikely to be successful. Monzo has informed its home regulators of the decision.

Monzo has been looking to refocus on growth in the UK after a pandemic in which it suffered a 40% drop in its valuation, was hit with higher capital requirements by the Bank of England and then subjected to an investigation over potential breaches of anti-money laundering rules.