Monzo Gets Full U.K. License, Looks to Expand to EU

  • Grace Noto
  • April 5, 2017
  • 1

Digital-only bank Monzo just received its full banking license from the United Kingdom.

This means that the bank can start rolling out full current accounts to its customers in the U.K., providing them with all of the benefits of a traditional bank account.

These full accounts are not subject to the same restrictions as the previous versions Monzo offered to its customers; the restricted license it received in August 2016 meant that while customers could make deposits to the bank, the deposit amounts across all Monzo accounts couldn’t exceed £50,000.

Monzo customers will still have the full range of features the bank offers, such as bill splitting and budgeting, as well as its “faster payments” and “direct debit” offerings.

The bank will also offer overdraft capabilities to select customers. At the moment, Monzo has more than 150,000 customers.

Eventually, the bank aims to sign a billion customers, according to a company statement—a pretty lofty goal, considering that the financial links between the United Kingdom and the rest of Europe are on shaky ground.

Monzo spokesman told Bank Innovation:

Brexit shouldn’t affect this licence — we would love to expand to the EU in the future and will cross that bridge when we come to it. In terms of numbers of customers, the eventual aim is to get to a billion customers. 2017 will hopefully see continue excellent growth along that path.

The bank raised $35 million so far, with its recent funding round–Feb. 2017 — of about $22 million accounting for most of that number.

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