Monzo drops his US banking license offer

A smartphone displays a Monzo logo in this illustration taken on January 6, 2020. REUTERS / Dado Ruvic / Illustration / File Photo

LONDON, Oct. 4 (Reuters) – UK digital bank Monzo withdrew its application for a US banking license after more than two years of negotiations with regulators, yet another setback for the loss-making bank.

“Following a recent engagement with the Office of the Comptroller of the Currency (OCC), we have decided to withdraw our banking license application for our American start-up,” Monzo said in a statement.

The bank said it was still determined to grow its U.S. business – which it launched in 2019 – and would invest more in Britain.

“We are exploring many market access routes that have been successful for other market entrants who are now major players,” added the bank.

The decision was first reported by the Financial Times.

Monzo has attracted five million customers since launching in 2015, but has struggled to turn popularity into profit, with annual losses reaching £ 130million through February. Read more

The bank’s auditors have warned its losses cast uncertainty over its ability to continue in business for a second year in a row, while the company also faces an investigation from the regulator into potential violations of anti-money laundering rules.

Reporting by Iain Withers, editing by Huw Jones, Kirsten Donovan

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