UK: Monzo now a fully-fledged bank

Monzo, a UK digital challenger bank, has announced that it now has a full banking license, which gives it the status of a fully authorised bank. This was an upgrade from the restricted banking license Monzo received from the Financial Conduct Authority and Prudential Regulatory Authority last year.

Monzo can now begin to roll out its current account offer, with the account currently being trialed with a small group of users. Monzo Chief Executive, Tom Blomfield, said, “As we get used to running current accounts day-to-day, we’ll look to offer accounts to larger numbers of people over the summer, including groups like our recent investors and pre-registrants from the crowdfunding.” Monzo will roll out its current account to existing users slowly to ensure the process runs smoothly.

New current account holders will be entitled to a Monzo debit card and their new account number and sort code will enable them to make bank-to-bank payments, set up Direct Debits and have their salaries paid into the account.

With current accounts and payroll accounts playing a key role in determining main bank status, the release of a current account should enable Monzo to develop deeper customer relationships, and potentially appeal to a broader range of customers.

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