UK digital bank Monzo has had a busy couple of days, securing a full European banking licence from the Central Bank of Ireland (CBI) and European Central Bank (ECB) to power its European expansion plans and announcing its first ever acquisition with a deal to buy London-headquartered mortgage fintech Habito.
Monzo was founded in 2015 and has grown to serve more than 14 million personal and 800,000 business customers in the UK through its mobile-first banking platform, which offers customers savings and current accounts, investment features, financial management tools, and more.
The company, which secured its UK banking licence in 2017, has now been granted a full European banking licence, saying it has become the “first digital bank to secure a full banking licence through an application to the Central Bank of Ireland, and from today becomes fully authorised by the European Central Bank”.
The licence will enable Monzo to expand its products and services across Europe, with the company setting up its official EU headquarters in Dublin and marking Ireland as its first target market.
Monzo announced its plans to establish a presence in Ireland in June 2024, preceding the appointment of Irish national Michael Carney as EU CEO a few months later.
Carney has helped pilot the new expansion into Ireland and will continue to drive the digital bank into new European markets.
Monzo has stated that Irish customers can sign up for early access to personal, joint, business, children’s, and instant-access savings accounts, which will be rolled out over the coming months.
Monzo acquires Habito
Monzo has also hit another landmark achievement this week, announcing its first ever acquisition with a deal to buy digital mortgage broker Habito. The deal is for an undisclosed sum and subject to regulatory approval.
The move will see Monzo integrate Habito’s mortgage offering into its platform as it looks to expand its UK product offering.
Announcing the news on LinkedIn, Monzo’s chief banking officer Kunal Malani writes: “Together, Monzo and Habito will make it easier for customers to find, compare, and secure the right mortgage, all from the Monzo app.”
Habito’s CEO Ying Tan also stated on LinkedIn that he will “be staying on to lead the charge in this next phase”.
These milestone announcements come amid a change in leadership at Monzo, with TS Anil announcing in October that he will be stepping away from his role as Group CEO in February 2026 after five years at the helm, with former Google and Standard Chartered executive Diana Layfield set to succeed him.
Source: https://www.fintechfutures.com/
