Revolut to apply for local bank charter in the US

Tuesday 13 October 2020 13:55 CET | News

UK-based Revolut has revealed its intentions of applying for a banking license in California, seeking to become a regulated bank.

As CNBC states, the fintech company plans on applying for a charter with the Federal Reserve Bank of San Francisco and California’s Division of Financial Institutions in October 2020. Even though Revolut’s bank charter will be with California, it will allow the lender to operate widely throughout the US via interstate agreements.

CNBC explains that the US financial regulatory regime is large and fragmented, and fintech startups have taken several different approaches to breaking into the market. The most successful so far, like Chime and Current, have simply partnered with existing banks.

The startup has already started doing business in the US, launching its core digital banking product in March 2020 after partnering with Metropolitan Commercial Bank. After a slow start, Revolut is approaching half a million users in the US, according to CNBC.

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Keywords: Revolut, UK, US, banking license, bank charter, digital banking, bank charter, brick and mortar bank, California Division of Financial Institutions
Categories: Banking & Fintech | Online & Mobile Banking
Countries: United States
This article is part of category

Banking & Fintech