Digital challenger bank Monzo breaks free of restrictions as it gains a full banking license, readying the new bank to provide its users with current accounts.
The Financial Conduct Authority (FCA) gave the bank a restricted license upon its launch two years ago, at which time the bank carried the name Mondo.
Monzo has since gained momentum, charging down the goal of achieving a full license since then, in which time the bank has experienced record breaking funding, and a massive show of confidence and support.
CEO of Monzo, Tom Blomfield came across pleased but reserved in the blogpost announcing the update, he said: “This is a process we will be taking quite slowly to ensure we can provide the best possible experience to our users, so I’d like to ask for your continued patience!”
Mr Blomfield’s restraint may be in light of recent bumps in the road that included card processing issues, and display anomalies experienced by customers using the Monzo app.
Recently Monzo boosted an already substantial total funding with a crowdfunding platform hosted by Crowdcube; the round attracted a record 6,500 investors, amassing £2.5 million. The flood of capital rolled in after only 96 seconds.
Luke Lang, co-founder of Crowdcube reflected on the recent fundraiser, he said: “The enormous demand from investors to back Monzo is another example of the huge appetite to invest in pioneering fintech businesses that are transforming a market and meeting the needs of the millennial generation.”
Giving some insight into the next stage of the process, 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.”