Revolut Is Yet to Apply for a US Banking License Formally: Report

Revolut Is Yet to Apply for a US Banking License Formally: Report

Time Stamp: September 18, 2023 1:26 AM
Source Node: 2277211

Revolut is yet to file its complete application for a banking license in the United States, according to a report by Tech.eu last Friday. It came two years after the UK-headquartered challenger bank revealed its intentions to submit a draft application for a US banking charter.

Although Revolut did not confirm officially, the FDIC (Federal Deposit Insurance Corporation), the government agency overseeing the US banking industry, told the publication that it does not have any application from Revolut. California’s Department of Financial Protection and Innovation (DFPI) also said it “never received a de novo bank charter application from Revolut.”

The registry of the Office of the Comptroller of the Currency (OCC), another US regulator, does not show any pending application from Revolut.

Earlier, Revolut said that it filed a draft application with both FDIC and DFPI. Finance Magnates has approached Revolut for further clarification and will update this story accordingly.

The Intention of Revlut to Become a Bank

Revolut is headquartered in London and operates as a payment institution in the UK. However, in most of Europe, the company provides services with a banking license obtained in Lithuania.

Meanwhile, the fintech is additionally seeking a banking license in the UK and has applied for the same in 2021. Further, the Australian arm of Revolut is considering a local banking license but is yet to make any formal application, Finance Magnates reported.

Revolut, valued at $33 billion at its peak and then slid to an estimated $18 billion, entered the US in 2020 with services including money transfers and debit cards. Over the years, it extended services in the country and even added a robo-advisor to automate investment portfolios for customers.

However, the platform is wrapping up its cryptocurrency services in the US, as it reportedly instructed its customers in the county last month to sell their crypto holdings. The “difficult decision” was made due to the regulatory hostility in the country towards cryptocurrencies.

Apart from Revolut, several other top fintechs are also seeking US banking charters, but most withdrew their licenses. Robinhood, Square, and Monzo are among the top names that withdrew their US banking license applications in recent years. Meanwhile, Varo Bank became the first consumer fintech to receive a US banking license from the OCC in 2020.

Revolut is yet to file its complete application for a banking license in the United States, according to a report by Tech.eu last Friday. It came two years after the UK-headquartered challenger bank revealed its intentions to submit a draft application for a US banking charter.

Although Revolut did not confirm officially, the FDIC (Federal Deposit Insurance Corporation), the government agency overseeing the US banking industry, told the publication that it does not have any application from Revolut. California’s Department of Financial Protection and Innovation (DFPI) also said it “never received a de novo bank charter application from Revolut.”

The registry of the Office of the Comptroller of the Currency (OCC), another US regulator, does not show any pending application from Revolut.

Earlier, Revolut said that it filed a draft application with both FDIC and DFPI. Finance Magnates has approached Revolut for further clarification and will update this story accordingly.

The Intention of Revlut to Become a Bank

Revolut is headquartered in London and operates as a payment institution in the UK. However, in most of Europe, the company provides services with a banking license obtained in Lithuania.

Meanwhile, the fintech is additionally seeking a banking license in the UK and has applied for the same in 2021. Further, the Australian arm of Revolut is considering a local banking license but is yet to make any formal application, Finance Magnates reported.

Revolut, valued at $33 billion at its peak and then slid to an estimated $18 billion, entered the US in 2020 with services including money transfers and debit cards. Over the years, it extended services in the country and even added a robo-advisor to automate investment portfolios for customers.

However, the platform is wrapping up its cryptocurrency services in the US, as it reportedly instructed its customers in the county last month to sell their crypto holdings. The “difficult decision” was made due to the regulatory hostility in the country towards cryptocurrencies.

Apart from Revolut, several other top fintechs are also seeking US banking charters, but most withdrew their licenses. Robinhood, Square, and Monzo are among the top names that withdrew their US banking license applications in recent years. Meanwhile, Varo Bank became the first consumer fintech to receive a US banking license from the OCC in 2020.

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