British digital bank Monzo will officially launch in the US on Thursday, a source familiar with the bank has revealed.
Lured by Monzo’s signature coral pink debit card and a promise of more efficient customer service than traditional banks, Monzo has racked up more than 2 million customers in Britain since its launch in 2015.
Monzo joined the global trend for digital-only banks by becoming part of the so-called ‘neobanks’ that have taken off in Britain in recent years.
In 2018, the start-up challenger bank entered into early stage talks to expand to the US. However, it put the expansion on hold in order to make its UK business profitable first.
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Banking sector analysts say that Monzo faces an incredible feat in order to be successful in the US’ $7 trillion financial services sector.
Richard Lumb, group chief executive for financial services at consulting firm Accenture, said: “For UK fintechs looking to fly the nest, one major contrast will be the complexity of federal- and state-level laws, compared to the UK’s fintech-friendly regulatory environment.”
Monzo would also need to seek approval from various regulators, including the Office of the Comptroller of the Currency, Federal Deposit Insurance Company and the Federal Reserve for a license.
Monzo did not immediately respond to a request for comment.