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Amsterdam-based digital financial institution bunq introduced plans to develop to the U.S.
The financial institution will likely be concentrating on the inhabitants of 5 million European expatriates residing within the U.S.
Since launching in 2012, bunq has expanded to greater than 30 markets in Europe and now facilitates funds in 16 totally different currencies.
Amsterdam-based digital financial institution bunq introduced this week it’s “bringing the financial institution of The Free to the land of The Free,” which means it has formally utilized for a U.S. banking license.
Based in 2012, bunq got down to make a financial institution that prospects love to make use of that’s designed to make life straightforward. When the corporate obtained its European banking license in 2014, it was the primary group in 35 years to take action. Since then, bunq has expanded to greater than 30 markets in Europe and now facilitates funds in 16 totally different currencies, offers each private and enterprise banking accounts, and affords a mortgage product.
When bunq launches within the U.S., the corporate will goal the inhabitants of 5 million digital nomads– European expatriates and companies working within the U.S. that battle to acquire a standard checking account as non-U.S. residents.
“We’re going stateside with a easy proposition, providing a banking product that allows U.S. shoppers and companies to bypass banking forms by opening a totally fledged worldwide checking account in simply 5 minutes,” stated bunq Founder and CEO Ali Niknam. “Utilizing bunq, they’ll effortlessly handle their funds from anyplace on the earth.”
bunq has obtained $260 million in funding and was valued at $1.9 billion in 2021. The corporate just lately turned worthwhile, having secured $2.5 million in revenue within the final quarter of 2022. If profitable in its mission to acquire a U.S. banking license, bunq could possibly construct on that profitability into the tough waters of 2023.
Different European fintechs have confirmed that the path to success within the U.S. will not be straightforward, nonetheless. Germany’s N26 pulled out of the U.S. market in late 2021 after initially launching within the area in 2019. When U.Okay.-based Monzo confronted difficulties securing its U.S. banking license in 2021, the fintech in the end determined to accomplice with a standard financial institution to launch its companies stateside. Equally, Revolut can also be working with a accomplice financial institution within the U.S., although it’s at the moment awaiting the approval of its U.S. banking license.
“In our opinion, making use of for a U.S. license is the one means we are able to keep independence and supply The Free with the simple and protected banking expertise they deserve,” stated Niknam. Will bunq’s U.S. enlargement appear like that of different European digital banks which have gone earlier than it? If it does, the corporate might must sacrifice a little bit of that independence and discover a accomplice financial institution that shares its imaginative and prescient to create “the financial institution of The Free.”
Picture by Karolina Grabowska
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