Monzo Shifts From Beta In The U.S. And Offers Services To The Wider Public Of The Country
Even though it did not ensure a banking license in the United States, the fintech firm Monzo has finally decided to shift from the private beta in the country and allow the wider general public to use its services.
Starting February 2, the Monzo app can be downloaded by anyone in the U.S. and set up an account in just 10 minutes. That will allow the users to get access to the money management features of the app and the contactless debit card offered by the company.
“Over the past 18 months, we’ve onboarded thousands of new customers in the U.S., processed millions of dollars of transactions, and worked closely with our community to get as much feedback on our product as possible,” the company said.
After two years of trying to convince regulatory authorities of the company, the fintech firm was forced to give up its efforts to acquire a banking license in the U.S. FDIC member Sutton Bank holds the deposits of its users.
“You gave us amazing insight on the problems you’re facing in your financial lives, and your feedback directly led us to launch features like salary sorter. It’s now easy to divide up your paycheck in a few taps, so your spending, savings, and bills are neatly separated as soon as you get paid,” Monzo said.
The United Kingdom-based Monzo claims to have about five million customers in its home market, and its target of entering the U.S. market was an effort that it had been following for a long time. The company had roped in Visa’s global head of payment products and platforms, T.S. Anil, in late 2019 to lead its efforts to make it into the American market.
Since his appointment, Anil has also been selected to head its operations in the U.K. and replaced company co-founder Tom Blomfield in the middle of the U.K.’s first Covid-19 lock-down. The company has been trying to show investors that its business model was apt to transform its large customer base into a profitable business and has been facing a discounted valuation from wary investors.
After posting a £115 million loss for 2020/21, the company issued another profit warning in July about its capacity to continue as a going concern. It also reported that the Financial Conduct Authority is looking into its compliance with money laundering regulations.
Monzo’s decision to proceed with its objectives in the United States contrasts with the recent decision of another European digital rival, N26, to pull out of the country.