Monzo secures full banking license in Europe
Monzo Secures Full EU Banking Licence, Launches in Ireland
Monzo secured a full banking licence from the European Central Bank and the Central Bank of Ireland, enabling the UK-based digital bank to operate as a fully regulated lender within the European Union.
The approval allows the bank to establish its EU headquarters in Dublin and begin market entry in Ireland, representing its first regulated expansion beyond the UK. The licence provides the regulatory foundation to offer retail and business banking products locally, including Irish IBAN accounts, under EU supervision.
Regulatory Scope and Market Entry Details
EU Banking Authorisation and Irish Base: The full banking licence granted by European and Irish regulators allows the bank to operate as a regulated institution within the European Union. Ireland has been selected as the first market for entry, with Dublin designated as the location for its EU headquarters.
Product Coverage for Irish Customers: As part of the initial rollout, the bank plans to introduce a range of free retail and business banking products in Ireland, including personal, joint, business, children’s, and instant-access savings accounts, all delivered through a mobile-first platform and issued with Irish IBANs.
Instant-access Savings Account: The savings account is structured to allow customers to begin saving with deposits starting at €1 (US$1.17) and offers a 1.6% variable interest rate, positioned against the current average rate applied to overnight deposits in Ireland.
Business Banking Capabilities: For businesses, the account offering is intended to support small businesses and sole traders through features such as fully digital onboarding, automated tax pots, integrated invoicing tools, and real-time visibility into account activity.
Technology, Security, and Support Model: All accounts are underpinned by technology designed to prioritise reliability, fraud prevention, and security, alongside access to human customer support available 24/7 through in-app channels and telephone assistance.
Customer Co-Creation Approach: The market entry strategy includes working directly with early Irish customers to test and refine products, indicating an approach focused on adapting services to local needs rather than deploying a uniform product set from launch.
Customer Scale and Operating Base: The European expansion builds on an established UK customer base of more than 14 million personal customers and over 800,000 business customers accumulated since the bank’s founding in 2015.
Adjacent Strategic Developments: The EU banking licence follows acquisition of Habito, a UK digital mortgage broker, expected to complete in spring 2026, extending existing mortgage-tracking features used by over 450,000 customers.
Future Outlook
The licence provides Monzo with a regulatory foundation to scale operations within the European Union, using Ireland as an initial launch market under local supervision. This European expansion coincides with reported plans to reapply for a US banking licence and preparations for a potential initial public offering (IPO) in the first half of 2026, following annual revenue exceeding £1bn for the first time.
