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Monzo Bank Retreats From US Market
31 Mar
Summary
- Monzo Bank is closing its US operations after failing to gain market traction.
- The digital bank will cease onboarding new US customers and lay off staff.
- Existing US customers can use accounts until June, with a focus now on UK/Europe.
Monzo Bank has announced the closure of its US operations, marking a strategic pivot to concentrate on the UK and European markets. The digital bank, founded in 2015, will cease onboarding new customers in the US and has initiated layoffs affecting around 50 employees. Current US customers will retain access to their accounts until June.
Launched in the US in 2020 with a debit card and app, Monzo had previously applied for regulatory approval to obtain a US bank charter. However, this application was withdrawn less than a year later. The decision contrasts with other European fintechs, such as Wise and Revolut, which are expanding their presence in the US.
This strategic shift coincides with the leadership of new CEO Diana Layfield, who assumed the role in February. The company reports over 15 million customers in the UK and recently secured authorization from the European Central Bank for expansion across Europe. Despite a competitive UK market, Monzo achieved a pretax profit of £60.4 million for the year ending March 2025.
