I’ve experienced a bug twice now where the app doesn’t try FaceID at all and asks me to log out.
Here’s a 
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Would you be able to try FaceID in another app and then go back to Monzo?
Can’t anymore. I logged out and back in to fix it. But you’re probably right because just after this I tried FaceID in other app and it asked me for the passcode instead.
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FaceID was locked out for whatever reason (too many failures, last successful attempt was more than 24 hours ago, etc), and Monzo at the moment has no fallback mechanism for that (passcode, etc) so it just sits there. If you “prime” FaceID again in another app that does support it, it would’ve most likely worked. 