Revolut applies for US banking licence

Suban Abdulla
·2-min read
Revolut card next to of Android Revolut mobile app launched on the smartphone is seen in Gdansk, Poland on 9 July 2019 
Revolut reached over 400.000 users in Poland this year. The number of Polish clients increased by 100% in 9 months period.
Revolut Ltd is a UK financial technology company that offers banking services  (Photo by Michal Fludra/NurPhoto via Getty Images)
The company will also launch its business accounts in all 50 US states. Photo: Michal Fludra/NurPhoto via Getty Images

Revolut announced on Monday that the firm has submitted a draft application with the Federal Deposit Insurance Corporation (FDIC) and the California Department of Financial Protection and Innovation — the first step in the process to obtain a banking licence.

A banking licence allows the fintech startup to provide a broader range of financial products to US customers including overdraft protection, loans and deposit accounts, it said.

In January, the company applied for a UK bank licence to the Prudential Regulation Authority and the Financial Conduct Authority (FCA).

It was granted an EU banking licence in Lithuania two years ago, allowing it to roll out banking services in Central Europe.

“A US banking licence would ultimately enable us to provide US customers with all the essential financial products and services they can expect from their primary bank including loans and deposits,” Revolut co-founder and CEO, Nik Storonsky said.

He added: “We’re on a mission to build the world’s first global financial superapp, and pursuing a US banking licence is an integral part of the journey.”

The company will also launch its business accounts — which allow companies to make free money transfers in 29 currencies at the interbank exchange rate, among other things — in all 50 US states.

READ MORE: Revolut tackles digital payments with new business service

Last year, the company launched its merchant acquiring services, which allow businesses in 13 European countries to accept online card payments directly into their account. It costs 1.3% for UK and European Economic Area (EEA) cards and 2.8% for all other cards.

Revolut said that businesses can accept payments in 14 currencies and funds can be converted to another currency at the interbank rate, which allows them to save money on foreign exchange.

Since launching in 2015, the UK-based bank, which offers a range of money management tools has amassed more than 13 million retail customers. Its products include a debit card connected to an app that allows users to spend different currencies at the interbank exchange rate with low fees.

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