Fintech Monzo has shut down its US operations, first reported by Bloomberg and confirmed by TFN. The UK-based challenger financial institution stopped accepting new American prospects and laid off round 50 staff. It can shut present accounts by June 2026.
Monzo secured its European banking licence in December, and it now sees probably the most development there.
“We’re making a deliberate, strategic resolution to concentrate on scaling in our dwelling market and Europe and to step away from the US,” a spokesperson instructed TFN when approached for remark, pointing to the licence.
The fintech is extensively anticipated to go public this 12 months, suggesting the transfer could possibly be half of a bigger technique to grow to be IPO-ready. It additionally reportedly changed chief government TS Anil over the timing of the float, based on a earlier Financial Times report. Business exec Anil was the group’s CEO for nearly six years, having first headed up its US operations.
The optimistic message doesn’t change the principle level: when an organization is robust at dwelling, it’s onerous to justify spending extra in a market the place it can not develop. It’s even more durable to clarify this to future public buyers.
Personal and public market buyers could also be quietly happy by the information, given {that a} European focus might point out the place Monzo is getting ready to listing. It was beforehand rumoured to be trying on the US inventory markets, becoming a member of a laundry listing of European corporations that head Stateside to listing.
“We’re very grateful to our US colleagues and prospects for his or her assist and love for Monzo,” the Monzo spokesperson added.
The US enlargement by no means took off
The corporate introduced its US enlargement in 2019 however withdrew its software for a banking constitution in late 2021 after regulators advised it will be rejected, based on American Banker.
With out its personal constitution, Monzo needed to depend on associate banks to carry deposits and difficulty debit playing cards, first with Sutton Financial institution after which with Lead Financial institution. That dependency meant Monzo couldn’t originate loans, entry core cost rails straight, or compete within the lending and interchange income streams that outline US banking profitability.
Because of this, Monzo remained extra of a easy app than a full financial institution. A renewed attempt to secure a licence was reportedly thought-about as lately as late 2025, based on PYMNTS.
The IPO was additionally a key issue, with the London listing valued at between £6 billion and £10 billion, and new management slicing underperforming areas and bettering the story for public markets. The board changed Anil with Diana Layfield, who had labored at Google and Customary Chartered.
For the 12 months ending March 2025, Monzo reported revenue of £1.24 billion, up 48% from the earlier 12 months. Adjusted pre-tax revenue rose to £113.9 million, an eightfold improve. Buyer deposits additionally grew 48% to £16.6 billion.
Europe is the following chapter
Not like within the US, the place monetary startups should navigate a fragmented, state-by-state licensing regime, an EU regulatory licence grants passporting rights throughout the complete European Financial Space underneath a single framework — a win for fintechs on the continent when different sectors face fractured and laborious laws.
RivalRevolut can also be attempting once more to safe a US banking licence, submitting purposes with the OCC and the FDIC to create Revolut Financial institution US, N.A., which might permit it to function in all 50 states.
If Revolut has the capital, the persistence, and the regulatory goodwill to see it via, it stays an open query. What Monzo’s exit makes clear is that the choice, constructing a significant US enterprise with out these foundations, isn’t actually an choice in any respect.
