Revolut applies for US banking licence

Revolut has more than 70 million global customers and more than three million customers in Ireland alone

Revolut has applied for a US banking licence and appointed a former Visa executive as chief for the region, as the financial technology giant rolls out its ambitious plans to expand in the world’s biggest market.

Revolut has applied for a US banking licence and appointed a former Visa executive as chief for the region, as the financial technology giant rolls out its ambitious plans to expand in the world’s biggest market.

Revolut has become one of the largest and fastest-growing fintechs in the world, with more than 70 million global customers with a goal of growing the number to 100 million. It has more than three million customers in Ireland alone.

The company, launched its first full banking operations outside Europe last month in Mexico. Valued at $75bn (€64m) in November, the company has now sought the green light from both the US Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation to operate across all 50 states as Revolut Bank US, according to a statement on Thursday.

A US national bank charter will allow Revolut to directly access US Federal Reserve payment systems, accept customer deposits federally insured up to $250,000 per account, and offer personal loans and credit cards. This represents a fundamental shift from the fintech’s current operating model, which relies on multiple partner banks to provide services in the American market.

“The United States is a key pillar of our global growth strategy,” Nik Storonsky, founder and chief executive of Revolut, said in the statement, adding the application was a “major milestone” for the company.

Cetin Duransoy, who has held senior roles at Visa and Capital One and most recently headed savings platform Raisin in the US, will lead Revolut’s American operations as its regional CEO. He joins an existing executive team and a local workforce of just under 200, a number the company says will grow over time after it obtains the licence.

Revolut is among a slew of fintechs around the world that have been jockeying for formal banking licences in the US, seeking to capitalise on what many business leaders see as a permissive regulatory climate in US president Donald Trump’s second term in the White House. Rival Wise is another contender for a licence to perform some banking activities in the US, while Latin American fintech Nu Holdings won conditional approval from the OCC earlier this year.

Even as of late last year, Revolut was still exploring acquiring a US bank to help fast-track its expansion there.

“That’s one of the benefits for getting the licence, because it reduces the number of intermediaries that we’ll be using in the process, but also brings down the cost,” Sid Jajodia, the company’s global chief banking officer, said in an interview separately.

Having grown its customer base to more than a million accounts in the US, Revolut has been stepping up investment in the market, committing $500m (€430m) over three to five years. In a bid to boost its visibility there, it has ramped up marketing efforts, including offering free subway rides to New Yorkers.

Besides an office in New York’s financial district, the company plans to set up a new hub in Stamford, Connecticut, Jajodia said. It also intends to seek the Fed’s approval to establish a holding company in due course.

Revolut had discussed plans to apply for a US banking licence as far back as in 2021, but paused those efforts to focus on securing a permit back in the UK. In mid-2024, it won a conditional British approval, which still remains in a restrictive “mobilization phase”. 

The company is considering a fresh sale of shares in the second half of this year, though Mr Jajodia said such a move isn’t “any time on the horizon”.

Bloomberg