Digital-only bank Monzo granted full banking licence
The Financial Conduct Authority (FCA) and the Bank of England’s PRA have granted challenger bank Monzo a full banking licence.
With its banking licence restrictions now lifted, the UK-based digital-only bank can now offer its existing customers current accounts, although these will only be available to a “small group of users” initially.
Tom Blomfield, Monzo CEO, said: “Just over two years ago, we started on our journey to build a better bank. In June 2015, when we announced what was then Mondo to the world, I wrote that “we’re building a current account that lives on your smartphone and gives you control of your money”.
“Today is a major step towards making that mission a reality.”
Monzo has used crowdfunding to secure much of its funds, with its latest campaign bringing in more than £12 million of pledges.
Appealing to the smartphone generation, Monzo offers its customers a full banking experience via an app.
Users can manage their accounts via their smart device, with the bank also offering a prepaid Mastercard for purchases.