LONDON – UK Monzo rejected an application for a US banking license. after consulting the treasurer’s officials.
The London Banking Agency said it was originally planned to be “sterile”.
The statement was first reported by The Financial Times and a spokesman for Monzo confirmed it to CNBC.
Monzo began applying for a license in the United States. in April last year as part of efforts to expand its use, but negotiations with the OCC did not look good.
“Following our partnership with OCC, we decided to withdraw our U.S. license application.” A spokesman for Monzo said in a statement.
“While this is not the goal we wanted to start, it will allow us to grow and develop our products in the US through our partners and invest heavily in the UK. We are very committed to Monzo USA.”
Monzo, who was fired in June without a full banking license, is one of the most difficult names in handling cards and vending machines. These are new banks that want to participate in many financial services.
First, in competition with Chime, UK Revolut, and Germany’s N26, it successfully secured a full UK banking license in 2017, enabling it to offer profitable products to its customers.
Hundreds of thousands of Britons use Monz as their main bank, but so far the company has not benefited. It reported a loss of $ 18 billion ($ 181.68 billion) in February, up from $ 144 billion last year.
Last June, Monzo said the Covid-19 accident caused “great uncertainty” about its ability to be “terrible.”
The company’s market share decreased by 40% over the same period to $ 1.25 billion ($ 1.7 billion).