As Monzo begins its European expansion with a new licence in Ireland, the UK challenger bank appears to be experiencing trouble at the top.
Monzo has obtained a full European banking licence from the European Central Bank (ECB) and the Central Bank of Ireland (CBI).
According to a LinkedIn post on December 17, the challenger bank said it will spend the coming months learning from personal and business customers in Ireland to tailor its products to local needs, and has opened a waitlist for those eager to sign up.
Monzo launched in the UK in 2015 and now serves more than 13 million customers, competing with fellow neobanks such as Starling Bank and Revolut.
It has enjoyed strong growth, particularly following a solid financial performance in 2024. For the year ending March 31, 2025, Monzo reported revenue of £1.24bn ($1.65bn), a 48% increase from the previous year while gross profit rose 55% year-on-year to £747m.
The European licence is the first step in what Monzo has dubbed its “year of expansion across Europe,” first teased in June 2025. In doing so, the bank will enter direct competition with Revolut, which operates across the European Economic Area following its EU licence granted in Lithuania.
In a LinkedIn post, the bank said: “We’re buzzing to bring Monzo to even more customers across Europe, and Ireland is the perfect place for us to start. It’s tech-savvy, innovative, and ready for a bank that makes you feel better about money.”
Choosing Ireland
One reason Monzo may have selected Ireland as its European hub is because it shares many similarities with the UK, meaning consumer habits are likely to be familiar and easily transferable, as well as less initial marketing needed to push its branding.
Monzo has become the first challenger bank to secure a full banking licence in Ireland, therefore making the bank appear more trusted and compliant when entering other European markets.
Looking at its main competitor, Revolut secured its EU licence, which was expanded into a full banking licence in 2021, leveraging the country’s fintech-friendly regulatory framework in the wake of Brexit.
Lithuania has become a hub for European fintechs, with regulators known for speed, digital-first processes and a pipeline designed to attract startups.
The first battleground for the two challengers will be Ireland, where Revolut currently dominates with over three million users. However, Monzo will hope its new licence and local focus help it present itself as a trustworthy competitor for consumers seeking an alternative.
Trouble in paradise
While its new licence represents a turning point in its growth journey, reports indicate not everything is smooth at the top of Monzo.
Sources told the Financial Times earlier this week that a group of shareholders are looking to reinstate outgoing CEO TS Anil, who is set to step down in February 2026.
The investors are reportedly lobbying for Monzo chair Gary Hoffman to be removed and for Anil to remain as CEO, having garnered the support of shareholders holding more than 40% of the bank’s shares.
Anil announced his departure in October 2025, paving the way for Diana Layfield, a former Google executive, to become Group CEO. Layfield’s appointment, which requires regulatory approval from the FCA and PRA, is part of Monzo’s plan to expand globally and prepare for a potential initial public offering.
In an internal memo, Anil described the transition as an opportunity for Monzo to enter its next chapter, while shifting into an advisory role.
During his six-year tenure, Anil helped grow Monzo’s customer base from four million to more than 13 million, also increasing Monzo’s valuation to £4.5bn.
