Brazilian digital bank Nubank is in preliminary discussions to acquire UK challenger bank Monzo in a deal that could value the London-based fintech at between £8bn and £10bn, according to Sky News and Bloomberg.

The potential transaction would give Nubank its first banking operation in the UK and mark a shift from the group’s predominantly organic international expansion.

Monzo, which has more than 16mn customers, is also considering a new funding round to finance expansion into mainland Europe.

Monzo has hired Morgan Stanley and Qatalyst to advise on its strategic options. A potential acquisition could involve a combination of cash and shares, according to sources cited by Sky News. The bank was valued at £4.5bn in an employee share sale last year.

For the year ended March 2026, Monzo reported pre-tax profit of £87.3mn, up from £60.5mn a year earlier, while revenue rose to £1.7bn from £1.2bn.

Nubank, which is listed on the New York Stock Exchange, had a market value of about $65.5bn. The company operates across Brazil, Mexico and Colombia and is expanding in the United States.

Nubank said it does not comment on “rumours or speculation”. Monzo declined to comment.