It's official: Monzo's now got a full banking license from the Bank of England's PRA and the Financial Conduct Authority

Lynsey Barber
Follow Lynsey
Restrictions on Monzo's banking license have now been lifted

It's full speed ahead for digital challenger bank Monzo which has now been granted a full unrestricted banking license by financial regulators.

The approval from the Bank of England's Prudential Regulation Authority and the Financial Conduct Authority comes after raising a fresh round of funding that fulfils the capital requirements needed for a bank to holds deposits.

Read more: Digital challenger bank Monzo just smashed another crowdfunding record

The startup was first granted a restricted license last August, but the full approval now gives it the green light to launch its current account, planned for the coming months, which will also include overdraft facilities.

Monzo founder and chief Tom Blomfield called it an "incredible achievement".

Read more: Here’s why fintech will make banks stronger

Economic secretary to the Treasury Simon Kirby said: The authorisation of pioneering digital banks like Monzo underlines the UK's status as the best place in the world to start and grow a fintech."

“I look forward to seeing Monzo succeed. Its innovative products and services offer a real alternative to existing banks and will help increase competition – delivering one of the government’s key objectives to make UK financial services the most competitive in the world.”

The milestone comes ahead of the Innovate Finance Global Summit next week, which will bring together thousands of financial and technology experts from around the world.

Related articles