App-based, digital bank Monzo plans a US rollout soon

A recent £113 million investment by Y Combinator in digital challenger bank Monzo has ratcheted up the latter’s valuation to over £2 billion, double what it was just eight months ago.

Digital banks such as N26, Revolut, Starling and Monzo rely on phone-based apps for their business as an increasing number of customers seek to escape cheque books and physical banking.

Monzo

The bank operates a Monzo Bank app and issues customers with a contactless Hot Coral debit card. The bank allows current accounts and certain free transaction limits on international transactions and ATM withdrawals.

The bank has over 2 million users and is looking to tally 3 million customers in a matter of a few months.

The new valuation helps Monzo overtake rival challenger bank Revolut.

Rapid expansion eyed

Monzo is planning to expand its business in the UK and abroad, including a launch in the US.