FinTech: Revolut Applies For U.S. Banking Charter

March 22, 2021 | FinTech, News

The digital bank wants to expand its range of offerings to U.S. customers.

Revolut, the digital challenger bank led by co-founder and CEO, Nik Storonsky (pictured above), has filed a draft application for a banking charter with the Federal Deposit Insurance Corporation (FDIC) and the California Department of Financial Protection and Innovation. Currently, without a banking license, Revolut offers financial services in the US through FDIC-insured Metropolitan Commercial Bank (NYSE: MCB). (Finextra)

Revolut eyes all primary banking services

“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,” said Storonsky. “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.”

In Europe, Revolut officially launched earlier this month as a bank in ten European countries, ramping off its Lithuanian banking license. It offered protected deposit accounts in Bulgaria, Croatia, Cyprus, Estonia, Greece, Latvia, Malta, Romania, Slovakia, and Slovenia.

It rolled out a full-fledged Lithuanian bank last May.

In January, the neobank submitted an application to the U.K.’s Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) for a banking license. According to estimates, a full banking license would help lift its deposits in the country by a potential 50%.

However, Revolut’s Canada foray proved a damp squib. It recently decided to exit the country when its two-year effort sans a banking license turned out unsuccessful.

Nevertheless, since launching in the UK in 2015, Revolut has gained more than 13 million retail customers and 500,000 business clients.

If it wins a U.S. charter, it would be able to roll out more products such as overdraft protection, loans, and deposit accounts.

Related Story:  Are NeoBanks Finally Turning Around? Revolut Breaks Even

Image of Revolut’s Nik Storonsky:  Wikimedia Commons                                                   

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