Monzo’s second attempt to conquer US: here’s why the British neobank is more likely to fail than succeed 🇺🇸🏦

FinTech is Eating the World, 5 October

Hey Everyone,

Happy Thursday! Today we have a somewhat special issue as all eyes are on Monzo and their second attempt to conquer the US. We're going to take a deep dive and see why the British neobank is more likely to fail than succeed across the Atlantic (+ lots and lots of bonus reads). Let’s jump straight into the fascinating stuff 🌶

Monzo’s second attempt to conquer US: here’s why the British neobank is more likely to fail than succeed 🇺🇸🏦

The news 🗞️ UK digital banking star Monzo has just hired former Cash App executive Conor Walsh as its new US CEO, marking the start of a renewed effort to expand in America.

After its first attempt failed to get regulatory approval, the British neobank now thinks it’s finally ready to conquer the US.

Is it just wishful thinking or does Monzo actually have a chance in the US? Let’s take a look.

More on this 👉 We must remember that Monzo initially kicked off its US launch plans in 2019 under the leadership of current global CEO TS Anil. However, its application for a US banking charter was abandoned last year, leading to the departure of then-US CEO Carol Nelson. Stuff happens 🤷‍♂️

Now Walsh, who spent over 6 years at Square's SQ 0.00%↑ gem Cash App and most recently served as Head of Global Product, will take charge of Monzo's American operations. His tasks include hiring more staff, localizing the product for US customers, and devising a growth strategy.

When it comes to strategy, rather than reapply for a banking license, Monzo will partner with an existing US bank to offer its services stateside. In other words, it’s going to do a license-less US expansion.

ICYMI: Monzo's license-less US expansion. Smart move or just foolish? 🧐 [+ more good reads]

This is an interesting yet very risky move that could eventually backfire.

Let’s take a closer look and unpack this.