Monzo in early stage talks to expand to the US, CEO Tom Blomfield says

U.K. app-only bank Monzo is actually in early stage talks to expand to the U.S., CEO Tom Blomfield told CNBC.

The British start-up challenger bank, which has at This kind of point racked up half a million users, said a U.S. launch won’t happen inside the very near future, yet the company has begun talks with regulators along with potential hires.

“The U.S. is actually a definitely attractive market for us. They speak the same language, they’re broadly culturally similar, compared to different geographies around the planet,” Blomfield told CNBC in an interview on Thursday.

“I think there’s a huge market opportunity there, because there haven’t definitely been any completely new banks the last 10 years or so … So I think there is actually a big opportunity to use modern technology to launch a real consumer facing bank that will does the kinds of things consumers expect through a smartphone.”

Blomfield said the company is actually inside the “very very early stages” of exploring the market along with has held preliminary talks with regulators, yet the aim is actually to first get the U.K. business profitable.

The company offers current accounts, yet previously had pre-paid cards that will allowed people to top up through different banks. The pre-paid cards business, which were phased out inside the past couple of months, caused the company to lose £65 ($0) per customer. After moving away through pre-paid cards, the company at This kind of point loses £25 per customer along with is actually hoping to get This kind of figure between £15 along with £20.

through then, the wish is actually to sell customers lending products, mainly overdrafts. Monzo has been testing overdrafts using a few hundred customers, Blomfield said, yet everyone should be able to access the feature inside the coming months.

“that will should get us to marginal profitability,” Blomfield said, adding that will This kind of won’t likely happen This kind of year, yet perhaps in 2019.

Expansion into the U.S. could pit Monzo against large retails banks such as J.P. Morgan Chase, Bank of America along with Wells Fargo, along with digital offerings through investment banks such as Goldman Sachs.

Monzo will also need to seek approval through several regulators including the Office of the Comptroller of the Currency, Federal Deposit Insurance Company along with the Federal Reserve for a license.

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