Monzo, the UK’s largest app-based digital bank with more than 15 million customers, is closing its short-lived US expansion chapter to prioritize home markets after struggling to establish a strong presence.
Monzo, one of Revolut’s main frenemies, entered the US market in 2020 and swiftly chased a banking license before backing off in October 2021 as regulators raised concerns and its valuation took a hit.
In late 2025, reports suggested Monzo was evaluating a renewed application under a more accommodating regulatory climate, though it ultimately chose to exit the market.
The withdrawal is one of the first major strategic decisions under new CEO Diana Layfield and will result in roughly 50 layoffs. Existing US accounts will close by June 2026.
UK profits make the US harder to justify
Monzo is redirecting resources to the UK, where it generated £1.2 billion in revenue in the fiscal year ending March 2025, and to continental Europe, following authorization from the European Central Bank in December 2025.
The UK business is entering a phase of strong profitability, making US investment harder to justify.
Adjusted pre-tax profits rose eightfold to £113.9 million in 2025, supported by a 25% increase in customers, adding roughly 2.4 million accounts. Deposits in the UK climbed 48% over the same period, strengthening the bank’s funding base for lending.
While Monzo steps back from the US, players like Wise, Revolut, and Nu Holdings are charging ahead in the world’s biggest market.
Revolut has applied for a US national bank charter to grow its North American operations, following its abandoned attempt in 2023. The company has more than one million US customers and intends to invest $500 million over the next few years.
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