Dutch digital financial institution Bunq is plotting re-entry into the U.Ok. to faucet right into a “giant and underserved” market of some 2.8 million British “digital nomads.”
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PARIS — Dutch digital financial institution Bunq is hoping it should handle to safe a banking license from U.Ok. monetary regulators later this 12 months or early subsequent 12 months, the agency’s CEO and founder Ali Niknam informed CNBC.
“I hope we’ll get someplace by the top of the 12 months, perhaps early subsequent 12 months, as a result of the U.Ok.’s processes could also be barely completely different to Europe as a result of it is a completely different regulatory space,” Niknam mentioned in an interview final week on the Viva Tech convention in Paris.
“I do not know when they will say sure, however up to now I’ve little cause to consider that we cannot achieve success.”
Bunq, identified for its rainbow-colored playing cards and a deal with so-called “digital nomads” not certain by anybody nation or location, initially launched within the U.Ok. in 2019. However the financial institution was pressured to exit the nation in late 2020 due to Brexit.
The passage of Brexit into legislation meant that EU-based monetary establishments could not depend on their very own nation authorizations to function within the U.Ok. market. At present, Bunq solely holds a banking license with the Dutch central financial institution.
Challenges of reentering UK market
Now, Bunq is plotting a reentry into the U.Ok. market. The agency final 12 months submitted an software with the Monetary Conduct Authority for an digital cash establishment license. It says a U.Ok. launch would enable it to faucet right into a “giant and underserved” market of some 2.8 million British digital nomads.
That can show tough, although. Rival European fintech Revolut, which relies in Britain and at present has an digital cash establishment license, has been making an attempt for some years to safe its U.Ok. banking license.
To make certain, a banking license is completely different from an e-money license. The important thing distinction is {that a} banking license offers companies permission to supply loans. Monzo and Starling are among the many few U.Ok. client fintech platforms that maintain their very own financial institution licenses.
“We’re working as exhausting as we are able to, the U.Ok. regulator has been very responsive, dialogue is ongoing, I do not understand how lengthy it’ll take, however issues appear to be transferring,” Niknam informed CNBC.
Based in 2012 in Amsterdam by Dutch tech entrepreneur Ali Niknam, Bunq has since grown to grow to be certainly one of Europe’s largest neobanks total, with 12.5 million customers throughout Europe and deposits of 8 billion euros ($8.6 billion). It was final privately valued by buyers at 1.65 billion euros.
Earlier this 12 months, Bunq reported its first full 12 months of profitability, producing 53.1 million euros in internet revenue in 2023. Bunq can be pursuing enlargement in the US, having beforehand filed for a U.S. federal financial institution constitution in April 2023.