Monzo names new US CEO as it crosses 5 million customers

U.K. challenger bank Monzo is putting its eggs into the competitive U.S. market. In pursuit of that goal, it appointed Carol Nelson, former CEO of Cascade Bank and senior vice president of Bank of America, as the company’s new U.S. CEO. Nelson takes over from TS Anil, who is now Monzo’s U.K. CEO.

Why should we care?
Reports this week suggest Monzo secured $69M in Series G extension funding on a lower valuation after the company raised more than $80M in December – also a down round on a $1.7B valuation. The pandemic has hit Monzo hard, with annual pre-tax losses more than doubling in size in 2020 compared to the prior year. The company, whose founder Tom Blomfield stepped down recently, shuttered a U.S. office last year. With the appointment of a new U.S. CEO, it appears the company hasn’t yet given up on a U.S. presence, with a team of 10 and a bank charter application in process. Monzo’s plans to take a piece of the U.S. market likely stem from a view that the U.S. isn’t a winner-take-all market, with a large pool of customers who may be dissatisfied with their banks. As Monzo plans to launch stateside, it faces competition from other European challenger banks attempting to do the same thing, including Berlin-based N26, which works with a partner bank in the U.S. N26 has embarked on a marketing blitz, but it’s unclear if it’s made a noticeable dent in the U.S. market. Whether Monzo can buck that trend and generate brand affinity from the U.S. public is yet to be seen.