Fintech Monzo has shut down its US operations, first reported by Bloomberg and confirmed by TFN. The UK-based challenger bank stopped accepting new American customers and laid off around 50 employees. It will close current accounts by June 2026.
Monzo secured its European banking licence in December, and it now sees the most growth there.
“We’re making a deliberate, strategic decision to focus on scaling in our home market and Europe and to step away from the US,” a spokesperson told TFN when approached for comment, pointing to the licence.
The fintech is widely expected to go public this year, suggesting the move could be part of a larger strategy to become IPO-ready. It also reportedly replaced chief executive TS Anil over the timing of the float, according to a previous Financial Times report. Industry exec Anil was the group’s CEO for almost six years, having first headed up its US operations.
The positive message does not change the main point: when a company is strong at home, it is hard to justify spending more in a market where it cannot grow. It is even harder to explain this to future public investors.
Private and public market investors may be quietly pleased by the news, given that a European focus could indicate where Monzo is preparing to list. It was previously rumoured to be looking at the US stock markets, joining a laundry list of European companies that head Stateside to list.
“We’re very grateful to our US colleagues and customers for their support and love for Monzo,” the Monzo spokesperson added.
The US expansion never took off
The company announced its US expansion in 2019 but withdrew its application for a banking charter in late 2021 after regulators suggested it would be rejected, according to American Banker.
Without its own charter, Monzo had to rely on partner banks to hold deposits and issue debit cards, first with Sutton Bank and then with Lead Bank. That dependency meant Monzo could not originate loans, access core payment rails directly, or compete in the lending and interchange revenue streams that define US banking profitability.
As a result, Monzo remained more of a simple app than a full bank. A renewed attempt to secure a licence was reportedly considered as recently as late 2025, according to PYMNTS.
The IPO was also a key factor, with the London listing valued at between £6 billion and £10 billion, and new leadership cutting underperforming areas and improving the story for public markets. The board replaced Anil with Diana Layfield, who had worked at Google and Standard Chartered.
For the year ending March 2025, Monzo reported revenue of £1.24 billion, up 48% from the previous year. Adjusted pre-tax profit rose to £113.9 million, an eightfold increase. Customer deposits also grew 48% to £16.6 billion.
Europe is the next chapter
Unlike in the US, where financial startups must navigate a fragmented, state-by-state licensing regime, an EU regulatory licence grants passporting rights across the entire European Economic Area under a single framework — a win for fintechs on the continent when other sectors face fractured and laborious legislation.
RivalRevolut is also trying again to secure a US banking licence, filing applications with the OCC and the FDIC to create Revolut Bank US, N.A., which would allow it to operate in all 50 states.
If Revolut has the capital, the patience, and the regulatory goodwill to see it through, it remains an open question. What Monzo’s exit makes clear is that the alternative, building a meaningful US business without those foundations, is not really an option at all.
