British digital bank Monzo to announce imminent U.S. launch

Shutterstock photo

By Lawrence White and Iain Withers

LONDON, June 13 (Reuters) - Fast-growing British digital bank Monzo is set to announce on Thursday its imminent launch in the United States, a source familiar with the matter told Reuters.

The bank did not immediately respond to a request for comment.

Monzo is one of a range of so-called neobanks that have launched in Britain in recent years, joining a worldwide trend for digital-only banks that eschew traditional branch networks.

The new bank has seen rapid success in winning customers from the six large incumbent banks such as Lloyds and RBS that dominate the market, although many customers have yet to switch their monthly pay cheques to Monzo.

The prize if Monzo succeeds in the United States'$7 trillion financial services sector is potentially huge, but banking experts say it will face a tough task.

"For UK fintechs looking to fly the nest, one major contrast will be the complexity of federal- and state-level laws, compared to the UK's fintech-friendly regulatory environment," said Richard Lumb, group chief executive for financial services at consulting firm Accenture.

This article appears in: Stocks , Banking and Loans , Politics

More from Reuters


See Reuters News

Research Brokers before you trade

Want to trade FX?