8.6 C
New York
Thursday, October 6, 2022
Home Uncategorized Monzo abandons application for US banking license

Monzo abandons application for US banking license

British challenger bank Monzo decided to withdraw from the application for a U.S. banking license.

Read also: N26 fined 4.25 million euros for money laundering

This comes after more than two years of negotiations with US regulators.

This was first reported by the Financial Times. “Following recent engagement with the OCC, we’ve decided to withdraw our banking license application for our US startup,” a spokesperson for Monzo said on 4 October.

In a statement, the bank says: “Following recent engagement with the OCC (Office of the Comptroller of the Currency), we’ve decided to withdraw our banking license application for our US start-up.”

“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.”

Monzo is set to compete with other fintech companies like Klarna or PayPal and offer buy-now-pay-later (BNPL) services.

However, Monzo’s version is going to be slightly different. A source close to Monzo’s BNPL project said it is going to feature affordability checks for customers – something rivals generally do not require.

Monzo also informed about a widening £134m loss in 2020. This has come with an investigation by the FCA over potential breaches of UK anti-money laundering rules that had been ongoing since 2018.

Jan Cerny
Jan is an innovation enthusiast and Fintech news reporter. He specializes in news distribution, social media, and content analysis.

Recent posts

Monzo gives its lowest-paid employees £1,000 cost of living payment

Digital bank Monzo is giving staff who earn less than £40,000 per year a one-off payment of £1,000 to help them cope with the cost of living.

N26 incorporates Bizum for its customers in Spain

The N26, a German digital bank, now also integrates Bizum among its payment methods, as for example, Orange Bank did in January 2021.

Klarna is set to make second round of job cuts

Swedish BNPL company Klarna Bank AB announced it will slash jobs once again after losing $39 billion of its valuation.

Revolut has become the most searched online bank in Europe

Revolut has become the winner in a study by CMC Markets that has analysed the most heavily searched European online banks and fintechs.