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The United Kingdom Challenger Bank, Monzo, is currently making moves to tap into the US Financial Market. Monso has applied to the US Office of the Comptroller of the Currency, for a banking operation licence.
This move, if successful, would enable the UK challenger bank to provide its full array of financial services in the biggest financial market in the world.
The Chief Executive Officer of Monzo in the United States, T. S. Anil asserts that “Monzo is applying to become one of the new banks in the US in over a decade.”
He further stressed the “significance of the milestone” in the evolvement of the Fintech Company, and in “making money work for everyone.”
The US Chief Executive also asserts that “while we will provide Americans better banking alternatives, we will remain committed to our sense of fairness, transparency and innovation, which have endeared us to our teeming UK customers.”
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Attaining the status of a fully licensed bank in the US would enable Monzo to provide a wide range of financial products such as insured deposit accounts and lending products to the entire US financial market.
The benefit is expected to be massive given the wealth and mass of the United States population.
The Fintech Company is confident that the application will be successful despite the reluctance of the US Authorities in granting licences.
Successful application will also provide impetus for other Fintech Companies such as Revolut and Starling Bank to follow suit.
However, it may take Monzo up to two years to secure the approval of the US Office of the Comptroller of the Currency due to the stringent approach of the US Financial Authorities.
The US Office of the Comptroller of the Currency is considered to be more stringent than its counterparts in the UK and the European Union.
Monzo started operating in the United Kingdom in 2017 as a fully licensed bank and has been engaging in traditional banking practices such as lending and currency deposits.
Currently, the bank has over 4 million customers in the United Kingdom.
In preparation for the US expansion, offices were opened in San Francisco and Los Angeles and T.S. Anil was appointed in January 2020 as the US Chief Executive.
