U.S. Market Expansion Tactic: Monzo Appoints New CEO to Boost Operations in America

In the dynamic world of fintech, the race to expand in the U.S. market is heating up. Two European fintech companies, Monzo and bunq, have recently made significant strides in their bid to capture a share of this lucrative market.

Back in March 2021, Revolut, a digital banking platform, submitted a draft application for a banking license with the Federal Deposit Insurance Corp. and the California Department of Financial Protection and Innovation, indicating its intention to launch in the U.S. The London-based company had already made its debut in the U.S. in 2020.

Monzo, another prominent fintech player, also entered the U.S. scene in 2020. However, in October 2021, the company withdrew its application for a U.S. banking charter with the Office of the Comptroller of the Currency. This move signals Monzo's renewed efforts to capture the North American market.

Conor Walsh, previously head of global product at payments fintech Cash App, has been appointed as the new U.S. CEO for Monzo. Carol Nelson, who was previously Monzo's U.S. CEO, stepped down last year. Sujata Bhatia, Monzo's Chief Operations Officer, announced Walsh's appointment at the Sifted Summit in London.

Monzo, however, is not the only European fintech trying to grab a share of the U.S. banking landscape. The crowded market presents challenges for new players. In April 2021, Amsterdam-based bunq applied for a U.S. bank charter. Bunq CEO Ali Niknam stated that having their own bank is necessary for them to deliver the desired user experience.

Berlin-based N26 abandoned a 2.5-year push to expand in the U.S. in November 2021. Despite this setback, the company launched its app to a 100,000-customer waitlist in July 2019.

The acquisition of licensing rights might be an aspect to consider for European fintechs looking to expand in the U.S. market. Bunq's application for a U.S. bank charter and Revolut's draft application for a banking license are testament to this strategy.

Niknam mentioned that Bunq would rather do things right than rush things. This approach could prove crucial in navigating the competitive U.S. fintech landscape.

In conclusion, the U.S. market presents a significant opportunity for European fintechs. However, the crowded market and regulatory hurdles require careful strategy and patience. The moves by Monzo, Bunq, and Revolut demonstrate that these companies are ready to take on the challenge.