Digital Bank Monzo, based in the United Kingdom, is crossing the pond. According to the Reuters reports that the company has reached United States shores, debuting with what is being termed a “Limited Rollout” of an app linked to a checking account and debit card. The company traces its genesis to 2015 and is among a pantheon of “NEOBANKS” that focus on digital offerings.
DIGITAL BANK MONZO
The company said it will be signing up customers for its cards through the next few weeks at events scheduled to be held in top cities of United States including Los Angeles, New York and San Francisco. That rollout would be evocative of the word of mouth that had been a catalyst to the firm’s gaining grip in the United Kingdom.
We are taking it slow to start with,” UK Digital Bank Monzo Chief Executive Tom Blomfield said in the report. “We want to understand how U.S. customers think and feel about their money.” In the United Kingdom, he said, about 30 percent of users opt to use Monzo Bank as their primary account.
Drilling a bit down into the details of the rollout, beginning today (June 13), and would-be customers can also opt to join an online waiting list to get the aforementioned cards. In the U.S. there will be no lowest balance requirements and no monthly fees but the company will not pay interest on deposits.
The company has applied for a United States banking license, Blomfield told the newswire, coming into the U.S. through a partnership with Sutton Bank, which is in turn based in Ohio. At present the company has the equivalent of $793 million in deposits from 2 million customers, and Monzo Bank has said it has been adding as many as 200,000 users monthly.
And yet the U.S. is a different market with its own challenges, according to some observers. As noted in the report by Richard Lumb, group Chief Executive for financial services at Accenture, “For U.K. FinTechs looking to fly the nest, one major contrast will be the complexity of federal- and state-level laws, compared to the U.K.’s FinTech-friendly regulatory environment.”