Yes, Monzo is a real bank.
Monzo Bank Ltd is fully authorised and regulated in the UK, confirming its status as a legitimate banking institution. This is a crucial point for anyone considering banking with them.
Regulatory Status
Monzo operates as a licensed bank, which means it adheres to strict financial regulations designed to protect customers. The key regulatory bodies overseeing Monzo in the UK are:
- Prudential Regulation Authority (PRA): Responsible for promoting the safety and soundness of financial firms.
- Financial Conduct Authority (FCA): Responsible for protecting consumers and maintaining the integrity of the UK's financial markets.
As stated in the reference, "Monzo Bank Ltd" is fully authorised in the UK by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority and the PRA. This authorisation and regulation are what grant Monzo the status of a real bank, allowing it to offer banking services like current accounts, savings, and lending.
What Does This Mean for Customers?
Being a fully authorised bank means that eligible deposits with Monzo are protected up to £85,000 per eligible person by the Financial Services Compensation Scheme (FSCS). This is the same level of protection offered by traditional high street banks.
| Regulatory Body | Role |
|---|---|
| Prudential Regulation Authority (PRA) | Authorises and supervises banks for safety and soundness. |
| Financial Conduct Authority (FCA) | Regulates conduct of financial firms to protect consumers and markets. |
In summary, Monzo is not just a financial app or e-money institution; it holds a full UK banking license.
