After just seven years, Monzo announced that it will be leaving the US market after applying for two banking licences in what it now seems to be an increasingly competitive, and regulatory uncertain, environment.
Monzo has confirmed it will be exiting the US market in a bid to focus on its home market of the UK as well as Europe.
The digital bank confirmed in a statement sent to Payment Expert that the move was a “strategic decision” to consolidate its position in the UK as the largest neobank in the country.
The statement read: “With a fast-growing customer base of 15 million in the UK and the growth opportunity our European banking licence creates, we’re making a deliberate, strategic decision to focus on scaling in our home market and Europe and to step away from the US.
“We’re very grateful to our US colleagues and customers for their support and love for Monzo.”
Current US Monzo customers will be able to use their accounts up until June 2026, according to reports, with the company also expected to be making up to 50 employees redundant.
The decision to pull its operations in the US almost all but confirms that any initial public offerings listings on US stock exchanges will not be taking place any time soon. .
Reports last year suggested that Monzo executives were mulling over a potential public listing on either the London Stock Exchange or the New York Stock Exchange. However, this was under the leadership of former Chief Executive Officer TS Anil, who was replaced by Diana Layfield earlier this year.
Monzo’s turbulent US journey
Monzo first soft launched in the US in 2018 before expanding its presence two years later to offer debit accounts and cards.
Conor Walsh was appointed as Monzo US CEO in October 2023, replacing Carol Nelson. Walsh oversaw direction and product launches, including the company’s interest-bearing savings jars last year.
Before announcing its exit from the US market, Monzo was reportedly seeking a bank charter licence in October 2025 from the Office of the Comptroller of the Currency (OCC).
Its previous attempts to gain a regulatory licence failed in 2021 after Monzo decided to withdraw its application, citing tightening restrictions on granting banking licences to international and digital banks. However, that was under the Joe Biden administration.
In Donald Trump’s second term as President, he has de-regulated many financial agencies, including the OCC, to promote private economic growth and reduce regulatory complexities for banks.
Despite this, Trump’s de-regulatory stance has also enabled non-traditional banking firms, such as Coinbase and Nubank, to also apply for charter licences from the OCC, with Nubank’s application successful. This, in turn, has created fragmentation across a market that has many regulatory uncertainties.
In Monzo’s 2025 financial statement, TS Anil highlighted that expansion raised “operational risks” amid changing regulatory environments.
“In the US, we’ve launched multiple new features and products including interest-earning Savings Jars to our growing customer base, with the team continuing to grow and invest in the product under Conor Walsh’s leadership,” said Anil.
“Expansion and continued rapid growth also increase our operational risks, making our relentless focus on growing safely and working positively within our changing regulatory environment even more important.”
