Monzo banks on revamp to pave way for international expansion

Monzo, one of Britain's biggest digital banks, is revamping its corporate structure as it pursues an international expansion strategy that will serve as the prelude to a multibillion-pound stock market listing.

Sky News has learnt that Monzo has established a new holding company - Monzo Bank Holding Group - to avoid it facing punitive capital treatment by British regulators as it launches in additional overseas markets.

Monzo has about eight million UK customers, making it the UK's seventh-biggest bank by customer numbers, and has a small presence in the US.

Sources close to the company, which could seek a public listing in the next couple of years, said the holding company was a logical step to make it more efficient.

A spokesperson for Monzo said: "This is a common step which gives us flexibility to support our ambitions for growth both in our home market and abroad.

"It will have no impact on our customers or how we operate on a day-to-day basis."

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Monzo competes with other British fintechs, including Revolut, which has so far failed to secure a banking licence from British regulators.

Starling Bank, another competitor, is currently seeking a new permanent chief executive.

Monzo's investors include a big Abu Dhabi-based fund, and was valued at $4.5bn when it raised funding in 2021.

On Tuesday, the company announced the launch of an investment product, accessible through its app.