Monzo has applied for a full banking licence in the US.

The company launched an initial roll-out in the US last August, working with 1,000 customers to gather feedback on a bespoke product for the American market, where it claims to have a 20,000-strong waiting list.

The digital challenger bank, which has more than four million UK customers, said the application to the US Office of the Comptroller of the Currency was an important milestone on the journey to becoming a fully-fledged player in the US digital banking market.

A licence would permit Monzo to offer fully insured deposit accounts in the US, as well as issuing loans to American customers. However, it may take up to two years to 18 months for the licence to be approved.

The company is also planning to expand its US workforce and will open a new office in San Francisco.

Monzo is hoping that the application will be helped by its experience operating as a fully regulated bank in the UK over the last three years.

Last week the company announced that it was closing its customer support centre in Las Vegas, with the loss of 165 staff, although the move did not impact the US launch, with customer support across the pond provided by a small team in London.

In December, the company hired Visa's global head of payment products and platforms TS Anil to lead its US expansion.

Commenting on the move, Anil said: “Filing an application for a US banking license is a significant milestone in our mission to make money work for everyone.

“By applying to be one of the first new US banks in a decade, we’re aiming to provide Americans with a better banking alternative - Monzo will be fair, transparent, and will bring many of the features that our UK customers love to the US market.”

Commenting on the move to apply for a licence, Anil said: “Filing an application for a US banking license is a significant milestone in our mission to make money work for everyone.

“By applying to be one of the first new US banks in a decade, we’re aiming to provide Americans with a better banking alternative - Monzo will be fair, transparent, and will bring many of the features that our UK customers love to the US market.”

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