Diverging paths: Monzo quits, Revolut hunts US charter

Monzo is shutting down its US business while Revolut pursues a US banking charter, marking a sharp strategic split as both expand their licensed banking operations closer to home.

Monzo's retreat ends a seven-year effort to build a presence in the American market. The digital bank entered the US market in 2019 through partner banks because it lacked its own charter, which limited the products it could offer.

In late March 2026, Monzo said it would immediately stop taking new US sign-ups, cut about 50 roles and close all US accounts by June. It is instead focusing on its customer base in Britain and on expansion in Europe after securing a banking licence through Ireland.

That licence allows Monzo to take deposits and make loans across the EU, giving it a regulated route to offer a fuller range of services than it could in the US.

Without a US charter, Monzo could not offer mortgages, personal loans or broader credit products under its own name. Its American offering remained closer to a branded debit account backed by partner institutions than a full-service bank.

Profit focus

The withdrawal also reflects Monzo's effort to sharpen its finances ahead of a planned stock market listing. For the year to March 2025, it reported about GBP £60 million in pre-tax profit on roughly GBP £1.2 billion in revenue.

Exiting the US removes a loss-making operation and may help preserve margins. It also simplifies Monzo's case to investors by centring growth on markets where it has direct regulatory control and a broader product range.

The bank has built a UK deposit base of about GBP £17 billion to support its lending business. That model, built on customer deposits and licensed banking activities, has underpinned its push towards sustained profitability in its home market.

Revolut has taken the opposite course. After obtaining a UK banking licence in early 2026, it moved quickly to seek a US national bank charter and appointed Cetin Duransoy as its US chief executive.

If approved, the application would create Revolut Bank US, N.A. A federal charter would allow the company to offer deposits, loans, and credit cards directly in the US and to connect more fully with core payment infrastructure such as Fedwire and ACH.

Scale gap

Revolut is pursuing the US from a very different financial position. It says it has about 68 million customers across 40 markets and reported around USD $6.0 billion in revenue and USD $2.3 billion in profit in 2025.

Recent fundraising valued the business at about USD $75 billion, giving it more room to absorb regulatory delays or heavier spending. Reports have suggested Revolut is prepared to invest around USD $500 million in building out its US operation.

That financial strength contrasts with Monzo's more selective approach. While Monzo has reached profitability, its earnings and balance sheet remain smaller, and its US push appears harder to justify against nearer-term goals in Britain and Europe.

Different models

The split also reflects how the two groups are built. Monzo has focused more tightly on being a licensed challenger bank in markets where it can gather deposits and lend directly, with revenue coming mainly from interest income, banking fees and subscriptions.

Revolut's model is broader, combining payments, foreign exchange, trading and banking in one app. It has sought licences in multiple jurisdictions as part of a wider effort to operate as a full-service financial platform in each major market.

A US charter would fit that model by allowing Revolut to move American accounts onto its own balance sheet and offer insured deposits and credit products directly. Monzo's former partner-bank model in the US required less capital, but gave it less control over products, economics and the customer offering.

Regulatory test

Revolut's plan carries risk. US regulators have often been cautious about approving new banks, and any review of their application may be prolonged or demanding.

If approval does not come through, Revolut may have to continue using a partner-based approach in the US, thereby limiting the scope of its banking offering there. Still, its scale and profitability mean it can keep funding growth elsewhere while waiting for an outcome.

Monzo, by contrast, has chosen to remove that uncertainty altogether. The decision aligns the business more closely with markets where it already has traction, regulatory approval and a clearer path to expanding loans and deposits.

The contrast is notable in a sector where several challenger banks have struggled to make the US work. Some have exited after failing to achieve sufficient scale, while others have turned to acquisitions rather than building a licensed operation from scratch.

Monzo and Revolut now offer two different answers to the same question: whether a fintech should focus on markets where it already holds a licence and earns money, or spend heavily to secure a direct foothold in the world's largest banking market. For Monzo, the priority is to narrow its focus; for Revolut, it is to widen its reach.