A MAJOR online UK bank is in “serious” talks to be sold in what would be a multi-billion pound deal.
Monzo, which has 16million customers, has reportedly been approached by the Brazilian banking giant Nubank.
It could see the business sold for up to £10bn, according to Sky News.
The sale is believed to be one of two options the bank’s board is currently exploring.
However, a source close to the business told The Telegraph that the deal, said to be in its early stages, was “serious”.
The other option is a new funding round expected to value Monzo at more than £8billion, with proceeds earmarked for a mainland European expansion.
Nubank, headquartered in Sao Paulo, is Latin America’s biggest fintech company.
It’s currently listed on the New York Stock Exchange with a market capitalisation of about $65.5billion.
Monzo, which was founded just over a decade ago by a group of entrepreneurs, has grown to become of the UK’s top 10 banks.
The deal would come as a blow to the City of London, which had hoped the challenger bank would list on the London stock market next year.
What it could mean for customers
While the talks of a sale are in the early stages, a takeover could bring big changes for Monzo’s customers.
Branding and features could change, and current accounts could be switched to the new owner.
This is currently the case for Halifax customers, who are seeing their accounts and online services moved over to Lloyds Bank after the group bought Halifax.
Because Monzo operates under a UK banking licence, customer deposits are protected up to £85,000 under the Financial Services Compensation Scheme (FSCS).
However, a sale is not guaranteed, so customers do not need to take any action or change their banking habits.
Monzo offers a range of popular features for its customers, including allowing users to get paid a day early, and its annual 1p savings challenge, which allows customers to save over £667 a year without noticing.
Monzo did not wish to provide a comment.