Revolut takes step closer to US bank launch after clearing key regulatory hurdle
Revolut has taken a step closer to launching a bank in the US after clearing a major regulatory hurdle.
The Canary Wharf-based business has received conditional approval from the Office of the Comptroller of the Currency (OCC) for its American national bank charter.
The UK’s biggest fintech is progressing its application with the Federal Reserve and the Federal Deposit Insurance Corporation, both of which it will need to secure ahead of plans to open its US bank as soon as next year.
Revolut founder and chief executive Nik Storonsky said: “Conditional OCC approval is an important first step towards establishing the proposed Revolut Bank US. It gives us the foundation to build in the world’s largest financial market and bring the full Revolut experience to millions of Americans.”
The process marks the firm’s second bid for a US permit after it made a play at the state-level in March 2021 through Californian regulators.
The initial effort ultimately stalled and was withdrawn by late 2023 following years of regulatory friction, including a staggering $20m loss due to a flaw in its US payment system and concerns over its internal financial controls.
This year, Revolut landed its full-fat licence in the UK following a four year wait as well as a fresh permit from the European Central Bank.
Revolut crosses hurdle other peers fell at
Europe’s top fintechs have turned to the US for expansion in the last few years, though several have faced problems in entering the market.
In the span of a fortnight, the OCC blocked bids from both money transfer firm Wise and Europe’s second largest neobank Bunq.
Wise, the UK fintech that transferred its primary listing to the US last year, was blocked on the grounds of “significant supervisory and compliance concerns”, regarding its anti-money laundering controls. It has been operating in the US since 2015, working under a money transmitter licence.
Meanwhile Bunq was told to produce a plan more “specifically built for the US market”. The OCC also appeared to disapprove of boss Ali Niknam’s plan to manage the US arm on a part-time basis.
Others have withdrawn from the market altogether with Monzo confirming earlier this year it had abandoned operations in the US to turn attention to Europe under new chief executive Diana Layfield. Payments platform Zilch confirmed it had “curtailed” its US operations in its 2024 accounts after rolling out its buy now, pay later offering to a waitlist of over 150,000 Americans in 2022.