The Financial Brand, October 5, 2021, End of the Road for Monzo Charter Isn’t End of the Road for U.S. Unit
While the U.K. neobank’s plans to charter an American bank appear to be stymied for now, avenues like banking as a service arrangements remain on the table. Monzo’s U.S. waitlist is still accepting new applicants and job postings for the San Francisco-based operation remain open.
The National Community Reinvestment Coalition opposed the Monzo application because it felt the neobank was not demonstrating a significant enough commitment to serving community needs. “Monzo is seeking a designation as a limited purpose bank, which would only need to engage in community development financing, not retail lending,” the group stated. The letter sketched out what the group believes any online lender should do to meet Community Reinvestment Act requirements.
