19 December 2025
On 17 December 2025, Monzo, the UK-based digital bank, announced that it had been granted a banking license by the Central Bank of Ireland (CBI).
It is the first digital bank to secure a full banking licence from Ireland’s Central Bank with the plan to base its European headquarters in Dublin.
Monzo was founded in 2015 and was fully regulated in the UK in 2017. Since then, Monzo has rapidly grown to service over 14 million customers and 800,000 businesses in the UK, using a mixture of the security of a regulated bank together with technical innovation to offer customers a different option from high street banks.
The decision to move into the European banking space is as a result of Brexit which led to UK-based banks losing their passporting rights to operate freely across the European Union. This prompted Monzo to seek a standalone license within the EU, with Ireland chosen as its gateway due to its robust regulatory framework and tech-savvy population.
This marks Monzo’s first entry into the eurozone as a fully licensed bank, positioning it to offer a comprehensive suite of financial services to Irish consumers and, potentially, to expand further across Europe.
With the CBI’s approval, Monzo can now begin the journey of bringing a digital banking option to the Irish market. The license also means that Irish deposits will be protected under the Deposit Guarantee Scheme, providing up to €100,000 of coverage per depositor.
Monzo’s achievement represents a pivotal moment for digital banking in Ireland, as it will offer customers a digital alternative together with the knowledge that they are bound by the CBI's supervisory and regulatory guidelines.
Experienced lawyers from KPMG Law LLP’s Financial Services Regulation team can provide firms and individuals with confidential legal advice on the framework around regulated entities. If you have any queries relating to same, please do not hesitate to contact our team below.
