Revolut Mulls Buying US Bank to Fast-Track American Licence: Report

Digital banking giant Revolut is reportedly exploring the purchase of a US bank as it seeks to accelerate its entry into the American market.

The move would allow the UK’s largest fintech to bypass the often lengthy process of securing a banking charter from scratch.

The company is considering acquiring a nationally chartered bank that already holds a licence, the Financial Times reported Tuesday. An acquisition would allow Revolut to lend in the US more quickly than applying for a banking charter independently, which can take years.

According to the report, the company is also said to be weighing applying for its own banking licence rather than entering through an acquisition.

Revolut declined to comment on the matter.

Trump-Era Policies Seen as Potential Boost to Revolut’s Licence Bid

The fintech, which has 60m customers worldwide, has been searching for ways to deepen its presence in the US, one of the world’s largest financial markets.

Winning an American banking licence would provide access to a vast base of customers and deposits at a time when UK fintechs are facing slower growth at home.

US President Donald Trump’s deregulatory agenda has created a perception that the Office of the Comptroller of the Currency could expedite the approval process for bank charters, the FT said. However, Revolut is still exploring the most efficient path forward.

Revolut Eyes Middle East, Latin America as It Seeks Scale Abroad

The company is already in talks for a $1b deal that would raise fresh capital and value the fintech at about $65b, the FT reported ths week. Part of the funding would help finance its global expansion.

Revolut has considered similar strategies elsewhere, including a plan to acquire a Middle Eastern bank. It completed the purchase of Argentine bank Cetelem from BNP Paribas last month as part of its expansion drive.

Although Revolut holds banking licences in Lithuania, which allows it to operate across the European Union, and in Mexico, it has yet to secure one in the UK. Regulators approved its application last year but imposed restrictions that continue to limit its lending activity.

US Banking Approval Could Pave Way for Digital Asset Services

The company’s international ambitions extend beyond traditional banking. Revolut, which has offered crypto trading in the UK and the European Economic Area, resumed limited crypto operations in Hungary this week. The move came after a regulatory freeze earlier this summer, when Hungary introduced a new law requiring all crypto service providers to hold a domestic licence.

As of Oct. 2023, Revolut suspended its crypto services in the US due to regulatory uncertainty.

Now, it’s push for an American banking licence could lay the groundwork for broader product offerings, including digital asset services, if approved.

Industry observers say a US banking licence would mark a significant milestone for Revolut and help it compete with American fintech rivals.