Monzo Weighs New Attempt at Landing US Banking License

British FinTech Monzo is reportedly weighing a new application for a U.S. banking license.

The company is considering restarting its plans to become a U.S. lender as it tries to speed its expansion in America, the Financial Times (FT) reported Sunday (Oct. 5), citing two sources familiar with the matter.

Monzo executives believe the new application would be more likely to win acceptance from the Office of the Comptroller of the Currency (OCC), in the wake of the deregulatory push overseen by President Donald Trump, the sources added.

Both the OCC and the other U.S. bank regulator, the Federal Deposit Insurance Corporation, have pulled back guidance that had made banking deals tougher to complete, FT added.

PYMNTS has contacted Monzo for comment but has not yet gotten a reply.

Monzo jettisoned an earlier application for a U.S. banking license in 2021 after the OCC indicated that it would be unlikely to give the company its blessing.

The latest licensing attempt is happening as a number of neobanks that “built their reputations in Europe are now accelerating their expansion across borders, with the United States squarely in their sights,” as PYMNTS wrote last week.

“The U.S. offers fertile ground for expansion: Gen Z, the first generation of true digital natives, is beginning to accumulate income, savings and purchasing power — and their expectations for banking services align neatly with the digital-first DNA of those providers,” that report added.

For example, Revolut recently deepened its U.S. presence with the launch of a high-yield savings account late last month, part of its broader American growth strategy.

The FinTech has also confirmed that it is seeking pathways to secure a U.S. banking license, either by applying directly or by acquiring an existing bank. By developing U.S. savings products and looking for structural ways to function as a bank, Revolut is indicating that it sees American consumers as key to its next growth chapter, PYMNTS wrote.

The same report also pointed out other efforts by Monzo to lay groundwork in the U.S., with the company continuing to maintain live product offerings for American customers, including joint accounts, debit card services and its hallmark “Savings Jars” feature.

“These tools cater to Gen Z’s preference for apps that provide financial control in real time, from micro-saving to splitting expenses,” PYMNTS wrote. “The bank has also raised capital in past rounds with explicit reference to U.S. expansion and, in preparation for scaling operations, hired a U.S.-based CEO with deep FinTech experience.”