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.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now