UK-based challenger bank Monzo has applied for a banking license in the US in a bid to tap one of the world’s biggest financial markets.
The neobank has submitted the application to the US Office of the Comptroller of the Currency (OCC), which may take up to two years to be approved.
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Upon the receipt of approval, Monzo will be able to offer its full suite of banking services in the country, including fully-insured deposit accounts and lending money to American customers.
It plans to hire more people and set up shop in San Francisco, California.
Monzo US CEO TS Anil said: “Filing an application for a US banking license is a significant milestone in our mission to make money work for everyone.
“By applying to be one of the first new US banks in a decade, we’re aiming to provide Americans with a better banking alternative.
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By GlobalData“Monzo will be fair, transparent, and will bring many of the features that our UK customers love to the US market.”
Securing a full banking license in the US is said to be more complex than in the UK. In 2018, challenger bank Varo Money received preliminary approval for its app but it is yet to receive a full license.
Fintech Revolut, which launched its banking app in the country last month, also aims to secure a full banking license.
