- Revolut has dropped its plan to acquire a US bank.
- The fintech firm is now attempting to secure its own banking license in the US.
- This is due to the complex regulatory conditions and the expense of acquisition.
Revolut, the blockchain-based crypto trading and digital banking firm, has reportedly dropped plans to buy a US bank. Instead, the platform is now looking apply for its own American banking license. The move comes as part of the fintech firm’s vision to expand into the broader financial market.
This strategic decision reflects Revolut’s desire to stay true to its digital-only model, avoiding the complications of maintaining physical branches. The firm is pursuing a “de novo” license through the Office of the Comptroller of the Currency (OCC), with the hopes of gaining approval more quickly.
Why Revolut is Choosing a Banking License over Acquisition?
Revolut, a UK-based fintech firm that also offers crypto trading, has dropped plans to buy a US bank. According to a Reuters report, the bank has taken the initiative to secure its own banking license in the US instead.
Significantly, Revolut’s banking license plans come amid its broader vision of expanding its services across the financial space. The fintech giant noted that the US market remains central to its global growth plans and confirmed it is considering several options, adding, “The U.S. market is critical for Revolut’s global growth strategy and our long-term plan is to establish a bank in the U.S.”
As per the report, the platform is looking to apply for a so-called “de novo” banking license from the Office of the Comptroller of the Currency (OCC), which is issued to newly formed banks. People familiar with the bank believe that the process could move faster under a revamped OCC during the Trump administration.
The London-based firm had initially planned to enter the US banking system quickly by buying an existing US bank. However, it ultimately decided that pursuing an acquisition will be slower and more complex than anticipated.
Analysts say that the shift in Revolut’s view is driven by several factors. They posit that suitable acquisition targets have become harder to find and more expensive. Also, now regulators are more scrutinizing bank mergers, especially those linked to fintech firms. In addition, experts also argue that the company gains greater control over its technology, customer expertise, and long-term strategy by securing its own banking license.
Navigating the US Regulatory Space
Revolut’s withdrawal from its bank acquisition plans comes amid the tightening crypto and banking regulations in the US. The regulatory space still remains complex and uncertain, especially due to the multiple delays in the CLARITY Act.
The OCC, which oversees national banks, has gradually shaped its approach to crypto. While it initially allowed banks to hold digital assets and use stablecoins, it later tightened its hold, stressing stronger stress controls.
If Revolute gets a federal bank charter, it would place the firm under the control of the OCC. This would simplify compliance under one regulator, but it could also mean meeting tighter rules on capital, liquidity, and consumer protection.
Other global neobanks have taken different routes in the US. For instance, Germany’s N26 entered with a limited offering before exiting, while Brazil’s Nubank expanded through acquisitions. Revolut’s strategy points to a long-term bet- the clarity and stability of a full banking license are worth more than the faster route of buying an existing bank.
