The British bank is set to launch in Ireland over the coming months having finally secured a licence from the Central Bank.
The Irish banking sector is set to welcome another high-profile digital player, as British online bank Monzo has confirmed plans to launch here shortly after securing regulatory approval.
Following the high-profile exits of Ulster Bank and KBC in recent years, the arrival of a new bank will no doubt be welcomed by Irish consumers looking for more choice, better online banking options and lower fees.
However, while Monzo has been hugely successful in the UK, it will be entering an Irish market that already has some well-established digital banks — most notably Revolut, which has built up a massive customer base here in recent years.
Here's a bit more about monzo and what it plans to offer...
Who is Monzo?
Monzo is a British online “challenger” bank founded in 2015.
It is best known for its slick mobile app, user-friendly design and detailed insights into customers’ spending, budgeting and saving habits.
The bank now has around 14 million customers in the UK and offers current accounts, savings accounts and a growing range of financial products.
Monzo received a full UK banking licence in 2017 and has been gradually laying the groundwork to expand into Europe over the past few years.
What’s happening?
Monzo has received a full banking licence from the European Central Bank as well as the Central Bank of Ireland.
This will allow it to start offering its services in Ireland over the coming months, before expanding more widely across the eurozone.
Monzo will become the first online bank to operate in Ireland under a licence issued by the Central Bank of Ireland itself and will have its EU headquarters in Dublin. By contrast, Revolut operates here under a Lithuanian banking licence, N26 under a German licence and Bunq under a Dutch licence.
The bank says it will offer customers Irish IBANs, a fee-free current account, joint accounts, and an instant-access savings account paying 1.6% AER.
It also says that it will provide 24-hour customer service support using humans as opposed to chatbots or AI.
As a fully digital bank, all services will be accessed through the Monzo app. And because Monzo will be regulated in Ireland, customer deposits of up to €100,000 will be protected by the Irish Deposit Guarantee Scheme.
Speaking about the move, Michael Carney, EU CEO at Monzo, said:
“Monzo has already proven that by combining the trust of a regulated bank with cutting-edge technology, we can truly transform people’s relationship with money. Today marks a significant step forward in our global mission to make money work for everyone.”
A changing banking landscape
The Irish banking sector has undergone significant change in recent years, with the high-profile exits of Ulster Bank and KBC reducing choice for consumers.
But at the same time, digital-first banks have flourished. Revolut, in particular, has become a big force in Ireland, offering everything from everyday banking and savings to bill-splitting, budgeting tools and investing features — all wrapped in a highly polished app. With millions of Irish customers already on its books, Revolut has a significant head start.
That means Monzo may find it challenging to gain a strong foothold in Ireland, despite its impressive track record in the UK. To succeed, it will likely need to clearly differentiate itself, whether through better savings rates, superior budgeting tools or a simpler, more transparent banking experience. And of coruse it has other online banks such as Bunq and N26 to compete with too.
Still, the arrival of another regulated bank can only be a positive development for Irish consumers. Even if Monzo doesn’t immediately match Revolut’s scale, increased competition should help keep fees down, encourage innovation and push all banks operating here to improve their offerings.
