Digital bank Monzo halts US operations to double in Europe

Monzo, the UK's biggest app-based digital bank with more than 15 million customers, is closing a short-lived US expansion phase after struggling to establish a solid presence.

Monzo, one of Revolut's main libertarians, entered the US market in 2020 and quickly pursued a banking license before being discontinued in October 2021.

In the year By the end of 2025, Monzo was evaluating a revamped app under a more favorable regulatory environment, although it ultimately chose to exit the market.

The layoffs are one of the first major strategic decisions made by new CEO Diana Layfield and will result in about 50 layoffs. Existing US accounts will close in June 2026.

The United Kingdom's surplus makes it difficult to explain the United States

Following approval from the European Central Bank in December 2025, Monzo is moving resources to the UK and continental Europe, where it is expected to have revenues of £1.2bn in the March 2025 financial year.

UK business is entering a period of strong profitability, making it difficult to justify US investment.

Adjusted pre-tax profits rose eight-fold to £113.9 million in 2025, supported by a 25% increase in customers, adding almost 2.4 million accounts. Deposits in the UK rose 48% over the same period, strengthening the bank's lending base.

As Monzo pulls back from the US, players like Wise, Revolt and Nu Holdings are charging ahead in the world's biggest market.

In the year Following an abandoned attempt in 2023, Revolt applied for a charter from National Bank of America to boost its North American operations. The company has more than one million US customers and plans to invest $500 million in the next few years.