By
Steve Muchoki
August 11th, 2023
One of the possible reasons cited has been the consistent loss made by Monzo in the past few years, despite having been in existence for six years.
After years of seeking a chance to venture into the United States market, the London-headquartered online banking app Monzo Bank Limited, has been denied a chance to debut in the US market by the Office of the Comptroller of the Currency.
According to the company through media outlet CNBC, the results were not what it initially expected when it began its interest in the United States market.
“Following recent engagement with the OCC, we’ve decided to withdraw our banking license application for our US start-up,” the company’s spokesperson said in a statement.
“While this isn’t the outcome we initially set out to achieve, this allows us to build and scale our early-stage product offer in the US through existing partners and invest further in the UK. We have big ambitions for the Monzo US. There are many routes to market we’re exploring that have been successful for other market entrants who are now major players.”
One of the possible reasons cited has been the consistent loss made by Monzo in the past few years, despite having been in existence for six years. In an earlier financial report, the firm reported a 130 million pound loss ($181.68 million) for the year to February, up from 114 million pounds the previous year.
Additionally, the company was previously being investigated by the Financial Conduct Authority over money-laundering concerns. The potential future outcome of the company selling part of its rights to competitors remains low according to Monzo CEO TS Anil, who previously noted the company has an independent bright future.
Monzo and Its Future Plans
Monzo has been one of the consistent financial services providers in the United Kingdom since its inception. According to metrics provided through its official website, it has over 5.5 million customers. Notably, its mobile application is available on both Google Play and App Store.
By providing customers the banking convenience, the firm has won most users’ attention. However, the company is facing fierce competition from other fintech firms including Chime, Britain’s Revolut, and Germany’s N26.
In a bid to beat its competitors and remain relevant in most markets, the firm offers overdrafts up to £1,000 and loans up to £15,000. Additionally, the bank does not alter one’s credit score for checking their loan eligibility.
Notably, the firm has its customers’ funds protected by FSCS, with a limit of up to £85,000. The firm takes pride in offering 4x better chances of stopping card fraud than other online providers.