Monzo, the UK-based online bank, has withdrawn its application for a banking license in the US, following two years of engagement with regulatory authorities.
In a statement, Monzo said: “Following recent engagement with the OCC (Office of the Comptroller of the Currency), we’ve decided to withdraw our banking license application for our U.S. start-up.”
Despite withdrawing the application, the bank stated it is still committed to expanding its US business, which was launched in 2019.
It intends to expand the US venture through its current partnership with Sutton Bank, instead of foraying as an individual banker
The bank further added: “We have big ambitions for Monzo US. There are many routes to market we’re exploring that have been successful for other market entrants who are now major players.”
Financial Times reported first about the bank’s decision.
It also plans to make further investments in the UK, reported Reuters.
Since its launch in 2015, Monzo has attracted around five million customers. However, it reported annual losses to £130m in the year to February.
Its auditors have already cautioned that losses would pose uncertainty over its capacity to continue as an entity.
It is also reportedly facing a regulator probe into alleged violations of anti-money laundering rules.