UK challenger Monzo opens its doors to US customers
Challenger bank Monzo has moved out of closed beta in the US and is now widely available to customers across the country.
The neobank says it has spent the past 18 months onboarding thousands of US customers and has already processed millions of dollars’ worth of transactions.
Monzo adds it has spent much of that time seeking feedback through community events, customer research calls, and customer support.
The bank says it wants to improve financial inclusion, support customers in vulnerable circumstances, “and play our part in creating a more just society”.
The news of Monzo’s wider US launch comes just four months after the digital bank abandoned its attempts to gain a US banking licence.
Monzo launched in the US in June 2019 and kicked off a full application with the Office of the Comptroller of the Currency (OCC) in April 2020.
Monzo wrote in an October statement: “There are many routes to market we’re exploring that have been successful for other market entrants who are now major players.”
In lieu of its own US licence, Monzo has partnered with Ohio-based community bank Sutton Bank to facilitate access to FDIC-insured banking services and hold user deposits. The Monzo debit card is also issued by Sutton Bank in the US.
Monzo is now valued at $4.5 billion following a funding round in December led by Abu Dhabi Growth Fund.
In a post on its community forum made at the time, Monzo said it expected the total investment raised to stand at more $500 million.