Monzo Bank is retreating from the US after facing difficulties in gaining traction in the market and shift focus to UK and Europe.
The UK-based digital bank will cease accepting new American customers and cut approximately 50 roles, reported Bloomberg.
Existing US account holders will retain access until June.
In a statement to Retail Banker International, a spokesperson for Monzo said the firm is “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.”
Monzo first expanded into the US in 2020, offering digital banking services including a debit card and app.
The company also sought regulatory approval to operate as a full-service bank in the US but withdrew its charter application less than a year later.
The withdrawal marks an early strategic shift under CEO Diana Layfield, who assumed leadership in February after former CEO TS Anil left following differences with the board overgrowth and public listing plans.
Monzo now plans to strengthen its presence in Europe after recently receiving authorisation from the European Central Bank.
For the financial year ending March 2025, Monzo reported a pretax profit of £60.4m ($80.3m), supported by increased lending activities.
The bank’s range of products includes payment cards, savings options, budgeting features, and investment funds managed by BlackRock.
In the UK, Monzo counts more than 15 million customers.
The domestic market includes rivals such as Revolut, now licensed as a bank in the UK with 13 million users; Zopa, which recently introduced cashback current accounts, and Wise, which has started offering everyday banking services.
Unlike Monzo, other fintech firms are pursuing expansion in the US.
Wise Plc is moving its main listing from London to the US and is increasing activity in the country.
Revolut has submitted an application for a US banking licence, while Brazilian fintech Nu Holdings Ltd. (Nubank) received conditional approval this year to begin US operations.
