Monzo has expanded its presence in Europe by launching in Spain, establishing offices in Barcelona and Madrid with more than 50 employees.
The move, as detailed [move], follows the neobank securing a European banking license. This step marks Monzo’s ongoing efforts to expand across the continent, coming after its exit from the US market.
Monzo has set up offices in two Spanish cities and is building a local team of over 50 employees, with plans to increase staff numbers in the coming year.
Licence and regulatory foundation
Monzo’s EU expansion was enabled by authorizations from both the European Central Bank and the Central Bank of Ireland in December 2025. Ireland serves as Monzo’s primary base within the EU, with its operations commencing in April 2026 amid strong customer interest indicated by a long waitlist.
The European banking license opens up new commercial opportunities for Monzo, allowing it to manage customer deposits and offer credit products like loans and mortgages. This extends the bank’s potential revenue streams beyond just account and payments services.
Spanish market and competitive landscape
The digital banking sector in Spain is already highly competitive, with established players like Revolut, N26, and Openbank (owned by Santander) presenting significant challenges. Each of these companies has achieved substantial scale across various European markets, highlighting the difficulty for newcomers to stand out.
For its Spanish market strategy, Monzo intends to focus on gathering customer feedback before developing a localized product offering. Any launches will require regulatory approval and will follow the phased rollout model typical for digital banks entering new EU jurisdictions, given the diverse regulatory requirements and consumer expectations across different markets.
With over 13 million customers on its UK platform, Monzo brings significant operational experience to its European expansion efforts. Its current banking license in the UK now complements this with a similar framework underpinning its activities within the EU.
