Bunq applies for US licence as it targets ‘digital nomads’
Dutch challenger bank Bunq has lodged an application for a US banking license with the Federal Deposit Insurance Corporation, hot on the heels of recording its first quarterly profit.
The company wants to introduce its subscription model in the US, targeting customers it describes as “digital nomads who are EU or US citizens with deep ties on both sides of the Atlantic”.
With a five-minute account opening process, users will be able to manage their finances from anywhere in the world, earning saving on foreign exchange fees, using multiple currencies, and accessing automated budgeting tools.
“Throughout Bunq’s history, we’ve always focused on making life easy for digital nomads in Europe,” said Ali Niknam, chief executive and founder of Bunq. “We can’t wait to bring our user-centered philosophy stateside, giving a community of location-independent people an effortless way to bank on the go.”
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Bunq reported break-even for the first time at the end of December 2021, and recorded its first profit in the final quarter of 2022. In that period it saw net fee income grow by 37 per cent, with user deposits up by 64 per cent, to €1.8bn (£1.44bn) at the end of the year.
At the time Niknam said: “I’m incredibly proud that, just a decade since our inception, Bunq’s service-oriented business model has proven to be profitable. Truly aligning our user-centered philosophy with financial success, we were able to build a business that’s only successful as long as our users are happy.”
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Niknam also said the self-styled ‘bank of The Free’ expected to maintain profitability throughout 2023 as it invests in innovation, product development and international expansion.
In December 2022, the business was able to raise €193m in capital, valuing the it at €1.6bn.
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