Can Monzo Compete With Revolut In Europe?

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Banking Without Borders 25 min 2 speakers 5 chapters transcribed 1 month ago
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What is the main topic discussed in this episode?

Jonny Pease 0:00
Okay, welcome back to another episode of Banking Without Borders. So Monzo just launched in Europe and the way they've done it is actually really smart. They started in Ireland back in April.
Unknown 0:08
Free accounts for all the family. You've waited long enough. Monzo.
Jonny Pease 0:13
But Ireland isn't really the point. The real reason is that an Irish banking license gives them access to all 27 EU member states. And with that, they've already announced their next target, Spain. Which is also a very deliberate choice, because this market has already proven that digital banking works. And a stat that I find utterly astonishing is that one in three new bank accounts opened in Spain in the last three years were with revenue. So Monzo isn't going somewhere that's untested. They're going somewhere that's already been cracked open. And Revolute, N26, WISE, Bunk. All of those banks are in their sights.

Why does Monzo’s Irish banking licence give it access to all 27 EU countries?

Jonny Pease 0:49
So the question isn't really whether Europe is ready for this kind of bank or it's ready for another digital bank. I think that answer is clear. The question is, can Monzo compete? And what is their actual plan? But before we get into that, Jan, you spotted something very interesting about how Monzo's Spain launch works and how it could potentially be illegal.
Jan Watermann 1:08
Yeah, Johnny, um it could potentially be illegal, at least to our understanding.

What makes Spain a strategic next target for Monzo’s European expansion?

Jan Watermann 1:12
So what Monzo has done is they've launched uh a wait list in Spain, and if you look at the requirements on the website, this seems to be only available to Spanish residents. But under EU law, my understanding is that they they can't afford that as a EU licensed bank. Interesting. I'd understand it that you would have to offer a basic account to any EU resident. resident who applies, right? So whether they're they're based in Germany, whether they're based in France, as long as they don't hold a a bank account in that specific country. So in in Spain in this example, Monzo would have to offer some sort of basic account. That's my understanding at least. It seems like they understand this slightly differently.
Jan Watermann 1:50
Also, you've mentioned they've launched in Ireland. They did that actually last month in April 2026. And um if you look at the website Hm. I can't find any information about uh about non residents being able to open open up a basic account. And that could be could be yeah, quite a uh dangerous topic for them. But you know, time will tell whether they'll get actually get into trouble for that. Maybe we also understand this uh this requirement wrong. Um, I don't know, but um to me it's pretty obvious. And um yeah.
Jonny Pease 2:19
So any regardless of where you are, as long as you're living in the European Union or perhaps maybe the European economic area, you could legally have access to any digital bank that holds an EU license, regardless of where they may stipulate that they're available. So if Revolute are available in say, I don't know how many jurisdictions now they have in u the European Union, probably more than fifteen. But if there's one that they don't service and you live there, you could get a Revolute account regardless just because you live in the European Union. Is that correct?
Jan Watermann 2:49
Yeah, not quite. Good example, Spain, right? Monzo plans to launch in Spain. Revolute is already live in Spain. As someone who lives in Germany, who who's doing potentially business in Spain, who needs a Spanish bank account for some reason, you know? Could be Whatever, but they want to open up a b a Spanish bank account and they don't have one yet. That's a really important um criteria to look at. Any bank would have to provide them with a a basic Spanish bank account, um in that case. That's my understanding at least. Um so Monzo would have to provide their Spanish bank account that they have available in Spain, um also to someone who is not living in Spain. That's my understanding at least. Same with Ireland.
Jonny Pease 3:27
That's really interesting. I think when we talk about the outlook for Monzo in Europe, it's really important to provide context on the behemoth of Europe in terms of digital banking, which is Revolut and the product that they're offering, or the set of features, or the plans, the tiers.

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