London (AFP) – British digital bank Revolut announced Thursday it has won conditional approval for a US banking licence, bringing it a major step closer to launching as a national bank in the United States. The approval by the US Office of the Comptroller of the Currency opens the door to Revolut eventually offering loans, credit cards and insured deposits to US customers directly.
“Conditional OCC approval is an important first step towards establishing the proposed Revolut Bank US,” Nik Storonsky, the firm’s co-founder and CEO, said in a statement. “It gives us the foundation to build in the world’s largest financial market and bring the full Revolut experience to millions of Americans,” he added. Revolut, which has made the US a key market for future growth, said it is working with authorities to launch the US bank in 2027. The fintech previously relied on partnerships with US banks to provide banking services.
The British company secured a long-awaited banking licence in its home market in March, lifting restrictions on its ability to compete with established retail lenders. The full UK licence allows Revolut to lend to customers in the country and offers them stronger financial protections. It also received a full French banking licence last month, allowing its French bank to operate alongside its Lithuanian subsidiary as dual hubs in the European Union.
Founded in 2015, Revolut has grown rapidly, reaching a valuation of $115 billion in a secondary share sale in July. Revolut has been a leader in rolling out financial services via smartphones, initially focusing on allowing customers to easily exchange currencies and make transfers. Storonsky said in April that an initial public offering of its shares was at least two years away.
The fintech, which says it already serves more than 80 million customers globally, is targeting 100 million customers in 100 countries. Revolut’s rapid growth has also drawn criticism in recent years over its ability to comply with financial regulations, particularly those aimed at combating fraud and money laundering.
© 2024 AFP
