Monzo has been given the green light to expand across Europe, after winning a banking licence. The UK digital bank announced today that it has secured a European banking licence.
The winning of the licence comes amid reports that well-known Monzo shareholders are agitating to reinstate the Monzo CEO and push out the Monzo chair.
Monzo outgoing CEO TS Anil was asked to step down by the fintech’s board amid concerns over international expansion and his post-IPO commitment, according to reporting from the Financial Times. Anil's exit was announced by Monzo in October this year.
It has now been reported that venture capital firms Accel and Iconiq are among the investors who have hired lawyers as they look to bring back Anil as CEO, who is set to be replaced by ex-Google executive Diana Layfield early next year. The VCs also want greater representation on the board and for Monzo chair Gary Hoffman, who has been in the role since 2019, to step aside.
The revolt is said to have the backing of investors holding more than 40 per cent of shares, the report says.
Separately, Monzo has won a European banking licence from the European Central Bank (ECB) and the Central Bank of Ireland (CBI), as it looks to expand across the EU.
Monzo, which has over 13m customers, already has a UK banking licence. The challenger bank has been vocal about its EU expansion plans.
In its 2024 annual report, Monzo said: "We've set our sights on Ireland as the destination for our EU base as we start laying the foundations for expansion across Europe."
The licence, which can be passported across the EU, means Monzo can begin offering its banking products across the EU, kicking off in Ireland, which is Monzo’s EU headquarters. The licence will allow Monzo to hold customer deposits, opening the door to income streams such as loans and mortgages.
In the coming month, Monzo’s Irish customers will be able to apply for retail and business Monzo accounts, Monzo said.
Michael Carney, EU CEO at Monzo, said: “The approval from European regulators means we can now take our much-loved products and services to millions more personal and business customers.
“Monzo has already proven that by combining the trust of a regulated bank with cutting-edge technology, we can truly transform people’s relationship with money. Today marks a significant step forward in our global mission to make money work for everyone."
Elaine Deehan, country manager, Ireland, Monzo, said: “We’re excited to be launching an Irish digital bank serving customers and businesses."
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