Revolut applies for US banking licence on first anniversary of its US launch

By Aisling Finn on Tuesday 23 March 2021

Digital Banking

The digital banking fintech, on the first anniversary of its US launch, is also rolling out its business banking products in all 50 states. 

Revolut applies for US banking licence on first anniversary of its US launch
Image source: Nik Storonsky (right)/Revolut

 

Digital challenger Revolut has submitted a draft application for its US banking licence and launches business accounts in all 50 states.

The fintech, which submitted its application exactly one year after it first opened its digital oors stateside, has taken its first steps towards obtaining a licence, working with the FDIC and the California Department of Financial Protection and Innovation to help secure it.

Nik Storonsky, co-founder and CEO of Revolut, said: “A US banking license would ultimately enable us to provide US customers with all the essential financial products and services they can expect from their primary bank including loans and deposits.”

“We’re on a mission to build the world’s first global financial super-app, and pursuing a US banking license is an integral part of the journey.” 

To date, Revolut has amassed over 15m customers across nearly 40 different countries and was granted a European banking licence from the Bank of Lithuania back in 2018 and launched its first bank accounts in the country in May of last year, launching them in ten more countries earlier this month.

Revolut first announced plans to jump across the pond back in 2018 and has since deepened its involvement in the country, today announcing plans to bring its popular business banking offering to all 50 states.

In February 2021, Ronald Oliveira, CEO at Revolut US, told AltFi: “The US is a large and important market with millions of customers who don’t currently have access to a sophisticated financial services app that offers the range of services that  Revolut does.”

“In Europe, we grew very quickly and largely organically as people shared our services with their friends. We launched very quietly last March with hardly any marketing spend and have already amassed tens of thousands of customers and refined our product.” 

Cleary Revolut’s efforts have paid off as US banking licences are notoriously difficult to obtain. 

Since 2017 there have only been between three to four applications per year and it often takes anywhere between 18 months and two years to get the green light. 

One of Revolut’s keenest UK rivals Monzo applied for its US banking licence 11 months ago and is yet to hear if it is successful or not. 

In January 2021, Revolut also finally submitted its application for a UK banking licence after operating in the UK for over five years without one. 

Revolut was first rumoured to be applying for a banking licence in March last year and was reportedly hoping to seal the deal by the end of the year and the fintech also started its hunt for a UK chairperson to help it secure the ever-elusive banking licence.

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