What trends in Europe may not be trending in the US. But Britain’s trending banking app, Monzo doesn’t seem to think so! It plans to foray into the American market, notwithstanding the competition and stringent fintech regulatory requirements.
Monzo which was launched in 2015 is hot property in the UK with about 2 million current users and a growing customer base month on month. Its speed and intuitiveness coupled with its immediate spending notifications and absence of fees on foreign payments have become huge draws. Though these superior features will be applicable in the US, developing comprehensive offerings suite will require some time.
It is quite natural for the company to venture into American territory considering the lack of a dominant player there; however, the road ahead is fraught with many challenges. One of the major ones will be a vastly different regulatory environment.
In comparison to the fintech savvy and friendly UK regulators the ones in the US are either extremely strict or unmindful as far as regulation is concerned. Competition in the form of Paypal, SoFi and the banking segment will have to be combated by Monzo. Besides the fear of tech giants like Amazon and Facebook getting into this space will always remain. Difference in savings and spending trends too count a great deal. Americans love earning reward points though mobile payments are not universal phenomena there.
Monzo who will partner with Ohio-located Sutton Bank for gaining access to the American market has the ability to adapt to differing conditions and if necessary can introduce a ‘points’ scheme in the years to come.
With support from American investor, Joshua Kushner’s ‘Thrive Capital’, Monzo can hope for the best as it tries to woo the American customer with its superior banking experience. The company stated on Thursday that they would launch from Los Angeles and several other important cities of the US.