Dutch digital financial institution Bunq is plotting re-entry into the U.Ok. to faucet right into a “giant and underserved” market of some 2.8 million British “digital nomads.”
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PARIS — Dutch digital financial institution Bunq is hoping it can handle to safe a banking license from U.Ok. monetary regulators later this 12 months or early subsequent 12 months, the agency’s CEO and founder Ali Niknam informed CNBC.
“I hope we’ll get someplace by the tip of the 12 months, possibly early subsequent 12 months, as a result of the U.Ok.’s processes could also be barely totally different to Europe as a result of it is a totally different regulatory space,” Niknam mentioned in an interview final week on the Viva Tech convention in Paris.
“I do not know when they will say sure, however up to now I’ve little motive to imagine that we can’t achieve success.”
Bunq, recognized for its rainbow-colored playing cards and a give attention to so-called “digital nomads” not certain by anyone nation or location, initially launched within the U.Ok. in 2019. However the financial institution was compelled to exit the nation in late 2020 due to Brexit.
The passage of Brexit into regulation meant that EU-based monetary establishments could not depend on their very own nation authorizations to function within the U.Ok. market. At present, Bunq solely holds a banking license with the Dutch central financial institution.
Challenges of reentering UK market
Now, Bunq is plotting a reentry into the U.Ok. market. The agency final 12 months submitted an software with the Monetary Conduct Authority for an digital cash establishment license. It says a U.Ok. launch would permit it to faucet right into a “giant and underserved” market of some 2.8 million British digital nomads.
That can show troublesome, although. Rival European fintech Revolut, which is predicated in Britain and at present has an digital cash establishment license, has been attempting for some years to safe its U.Ok. banking license.
To make certain, a banking license is totally different from an e-money license. The important thing distinction is {that a} banking license offers companies permission to supply loans. Monzo and Starling are among the many few U.Ok. client fintech platforms that maintain their very own financial institution licenses.
“We’re working as laborious as we are able to, the U.Ok. regulator has been very responsive, dialogue is ongoing, I do not know the way lengthy it’ll take, however issues appear to be shifting,” Niknam informed CNBC.
Based in 2012 in Amsterdam by Dutch tech entrepreneur Ali Niknam, Bunq has since grown to develop into one among Europe’s largest neobanks general, with 12.5 million customers throughout Europe and deposits of 8 billion euros ($8.6 billion). It was final privately valued by buyers at 1.65 billion euros.
Earlier this 12 months, Bunq reported its first full 12 months of profitability, producing 53.1 million euros in web revenue in 2023. Bunq can be pursuing growth in the US, having beforehand filed for a U.S. federal financial institution constitution in April 2023.
