Revolut is
eyeing a renewed effort to secure a US banking license, marking a strategic
shift in its approach to regulatory compliance and market expansion.
Speaking at
an investor conference in Helsinki, Chief Executive Officer Nik Storonsky
acknowledged that operating without full banking licenses had hindered the
company’s growth potential.
“In
the US, you need to be credit driven. So in the US, we need to have a banking
license to launch a product,” Storonsky said, highlighting the importance
of interchange fee revenue in the American financial landscape.
Revolut Chief Signals
Fresh Push for US Banking Expansion
The digital
banking giant, which recently achieved a milestone of 50 million global
customers, currently serves its US clientele through a partnership with Lead
Bank. A previous attempt to secure a US banking charter in 2021 was suspended,
but market conditions and the company’s evolved strategy may now present a more
favorable environment for a fresh application.
In a candid
assessment of Revolut’s past strategy, Storonsky admitted that the company’s
initial resistance to regulation was misguided.
“For a
long time I wanted to be as less regulated as possible, it was the completely
wrong decision,” he explained, noting that securing licenses has become
more challenging as the company has grown in size and complexity.
Meanwhile,
the company has introduced its cryptocurrency exchange platform, Revolut X, to
30 additional markets within the European Economic Area (EEA), targeting the
$200 billion market.
⚡️New: Revolut boss Nik Storonsky has hinted at making a fresh bid for a US banking license at Slush pic.twitter.com/25dx3AMYLP
— Aisha S Gani (@aishagani) November 20, 2024
The UK Approval Already In
The firm’s
regulatory evolution is already showing results, with Revolut
securing a UK banking license in July after a three-year application
process. This milestone, coupled with a recent secondary share sale valuing the
company at $45 billion, has strengthened its position in the global financial
services arena.
Additionally,
the company is developing new products and has announced plans to offer stock
trading services in the UK and EU starting next year. This expansion will
position it in competition with firms like Trading 212 Group Ltd and Freetrade
Ltd, as well as established companies such as Hargreaves Lansdown Plc and AJ
Bell Plc.
Revolut will offer trading of UK and EU-listed stocks from next year, as competition among retail brokers serving British investors intensifies https://t.co/pkwSz1t18p
— Bloomberg UK (@BloombergUK) November 18, 2024
Moreover, Revolut
India CEO Paroma Chatterjee has confirmed that the company plans to commence
operations in the local market in the second half of 2025. She stated,
“Our vision is to gradually introduce the full suite of Revolut products
to the Indian market, adapting them to meet the unique needs and context of
India.”
Looking
ahead, Revolut has set ambitious targets, aiming to double its customer base to
100 million active users across 100 countries. The company’s bold vision
includes reaching $100 billion in annual revenue, positioning itself as a
leading global financial institution.
Revolut is
eyeing a renewed effort to secure a US banking license, marking a strategic
shift in its approach to regulatory compliance and market expansion.
Speaking at
an investor conference in Helsinki, Chief Executive Officer Nik Storonsky
acknowledged that operating without full banking licenses had hindered the
company’s growth potential.
“In
the US, you need to be credit driven. So in the US, we need to have a banking
license to launch a product,” Storonsky said, highlighting the importance
of interchange fee revenue in the American financial landscape.
Revolut Chief Signals
Fresh Push for US Banking Expansion
The digital
banking giant, which recently achieved a milestone of 50 million global
customers, currently serves its US clientele through a partnership with Lead
Bank. A previous attempt to secure a US banking charter in 2021 was suspended,
but market conditions and the company’s evolved strategy may now present a more
favorable environment for a fresh application.
In a candid
assessment of Revolut’s past strategy, Storonsky admitted that the company’s
initial resistance to regulation was misguided.
“For a
long time I wanted to be as less regulated as possible, it was the completely
wrong decision,” he explained, noting that securing licenses has become
more challenging as the company has grown in size and complexity.
Meanwhile,
the company has introduced its cryptocurrency exchange platform, Revolut X, to
30 additional markets within the European Economic Area (EEA), targeting the
$200 billion market.
⚡️New: Revolut boss Nik Storonsky has hinted at making a fresh bid for a US banking license at Slush pic.twitter.com/25dx3AMYLP
— Aisha S Gani (@aishagani) November 20, 2024
The UK Approval Already In
The firm’s
regulatory evolution is already showing results, with Revolut
securing a UK banking license in July after a three-year application
process. This milestone, coupled with a recent secondary share sale valuing the
company at $45 billion, has strengthened its position in the global financial
services arena.
Additionally,
the company is developing new products and has announced plans to offer stock
trading services in the UK and EU starting next year. This expansion will
position it in competition with firms like Trading 212 Group Ltd and Freetrade
Ltd, as well as established companies such as Hargreaves Lansdown Plc and AJ
Bell Plc.
Revolut will offer trading of UK and EU-listed stocks from next year, as competition among retail brokers serving British investors intensifies https://t.co/pkwSz1t18p
— Bloomberg UK (@BloombergUK) November 18, 2024
Moreover, Revolut
India CEO Paroma Chatterjee has confirmed that the company plans to commence
operations in the local market in the second half of 2025. She stated,
“Our vision is to gradually introduce the full suite of Revolut products
to the Indian market, adapting them to meet the unique needs and context of
India.”
Looking
ahead, Revolut has set ambitious targets, aiming to double its customer base to
100 million active users across 100 countries. The company’s bold vision
includes reaching $100 billion in annual revenue, positioning itself as a
leading global financial institution.
This post is originally published on FINANCEMAGNATES.
