UK-based neobank Monzo is reportedly planning to re-enter the US banking market. According to a Financial Times report, the online bank is considering reapplying for a US banking license, four years after initially abandoning the effort.
Citing two unnamed sources, the report indicates that Monzo executives believe their application will be more favorably received by the current administration. The original application, submitted in 2021, faced challenges from regulators.
Since then, two US regulators—the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation—have retracted guidance that previously made licensing applications less likely to succeed.
Monzo is not the only institution reassessing its US strategy. London-based Checkout.com has expressed plans to intensify its efforts for growth in the US market. Additionally, the FT has reported that other UK challenger banks, such as Revolut and Starling, are considering acquiring a US bank to facilitate entry into the US market.