Monzo’s new chief executive has pledged to expand into more European countries, after the neobank decided to shut US operations, reported the Financial Times.
Diana Layfield, who took over from TS Anil in February, said the company was preparing for expansion in Europe
The UK-based digital bank decided to cease accepting new American customers and cut approximately 50 roles. The move follows Monzo’s receipt of a European banking licence from Irish regulators in December and the opening of offices in Spain and Ireland. Most of the group’s revenue still comes from the UK. “We have great momentum, but more importantly, we’re geared up for that bigger opportunity both in the UK and across Europe.
There is a Monzo-shaped hole across Europe across markets,” she added. Monzo added 3 million customers during the year, taking its total to 15.2 million, with almost all based in the UK. Like many lenders, Monzo has been seeking to increase income from this area of the business because it is less exposed to changes in the interest rate cycle.