Revolut has scrapped plans to buy a US lender and will rather apply for an American banking license. The company is betting that a streamlined approval process under the Trump governance will accelerate its growth in the US.
Europe’s most valuable financial technology company is now in talks with US officials about securing a licence through the Office for the Comptroller of the Currency (OCC). Sources indicate Revolut anticipates a speedy review, thanks to the current deregulatory environment.
This shift marks a change in strategy for Revolut. Just months ago, in August, the company was actively seeking to acquire a nationally chartered US bank. A takeover would have enabled lending operations across all 50 states.
At the time, acquiring an existing bank seemed like the fastest path to expansion. However,finding a suitable target proved challenging.Revolut reportedly explored deals with several institutions,but ultimately couldn’t reach an agreement.
Now, Revolut believes pursuing a banking licence directly offers a more viable route. The OCC has been known to approve applications relatively quickly, notably for fintech companies with strong financial backing. This approach allows Revolut to maintain full control over its US operations.
The decision comes as revolut continues to expand rapidly globally. The company has over 10 million customers and is available in more than 35 countries. The US market represents a important growth opportunity, and a banking licence is crucial for realizing its ambitions.
However, securing a US banking licence isn’t without its hurdles. Revolut will need to demonstrate robust compliance procedures, strong capital reserves, and a complete risk management framework. The OCC will scrutinize every aspect of its operations before granting approval.
Despite these challenges, Revolut remains confident in its ability to navigate the regulatory landscape. The company has assembled a team of experienced banking professionals and is committed to meeting the OCC’s requirements.If prosperous, a US banking licence will position Revolut for long-term success in one of the world’s most critically important financial markets.
