Digital challenger Revolut applies for US banking licence

The fintech working with the FDIC and the California Department of Financial Protection and Innovation to help secure a licence

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

The fintech, which submitted its application exactly one year after it first opened its digital doors in the US, 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, Storonsky said.

To date, Revolut has more than 15m customers across nearly 40 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 expand into the US 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.

Cleary Revolut’s efforts have paid off as US banking licences are extremely 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 approval.

One of Revolut’s UK rivals Monzo applied for its US banking licence 11 months ago and is yet to hear a decision.

In January 2021, Revolut also finally submitted its application for a UK banking licence after operating in the UK for more than 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 search for a UK chairperson to help it secure the banking licence.