Monzo, an upstart bank in the U.K., announced Wednesday (April 5) that its banking restrictions have been lifted, which means Monzo is now a fully authorized and unrestricted bank.
In a blog post announcing the development, Monzo Chief Executive Tom Blomfield said that with the banking restriction lifted, the company can now start the process of bringing current accounts to its existing users. Blomfield said it’s a process the company will be doing slowly to ensure it can provide the best experience to its users.
“We’re currently running live bank accounts with a small group of users, and we’ll slowly be expanding that group over the coming months to put our banking system through its paces and ensure everything works as expected,” wrote Blomfield in the blog post. “As we get used to running current accounts day to day, we’ll look to offer accounts to larger numbers of people over the summer, including groups like our recent investors and pre-registrants from the crowdfunding.”
At that point, Monzo said customers will have to go through a few easy steps and, once completed, will be sent a new Monzo debit card. Customers will be able to make bank-to-bank payments and set up Direct Debits and get direct deposit so salaries can be paid directly into the Monzo account.
“Please be patient! This process will take several months, and we’re still working out some of the details. We’ll share more precise time frames and details transparently as soon as we know them. Your existing Mondo and Monzo cards will continue to work as normal for now, and we’ll be in touch once we’re ready to offer you a current account,” Blomfield added.
In February, TechCrunch reported Monzo was getting closer to securing new Series C funding, with U.S.-based Thrive Capital reportedly leading the round. While an exact investment amount wasn’t disclosed, TechCrunch reported it could be around £30 million.
There are also reports that Monzo is planning to launch a second equity crowdfunding campaign soon. The startup has previously raised £12.8 million in funding, the majority of which came from early-stage London VC Passion Capital, in addition to an equity crowdfunding round. The most recent £4.8 million “bridge funding,” announced in October, valued Monzo at £50 million.