FinTech News
Revolut Officially Files for United States Bank Charter
Following rumors and reports in recent months, Revolut has made it official, applying to become a national bank.
About Revolut’s Bank Charter Application:
This week, London-based neobank Revolut announced that it had filed applications with the U.S. Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation in hopes of gaining a national bank charter. If successful, the new entity would be called Revolut Bank US, N.A.
Along with this milestone step, Revolut has named a new U.S. CEO. Cetin Duransoy has been appointed to the role, taking over for Sid Jajodia, who was given the title in 2022. Jajodia will stay on as Global Chief Banking Officer.
As Revolut notes, obtaining a bank charter would give them full ownership of the customer experience. Currently, the FinTech partners with Lead Bank for its debit card, Sutton Bank for its high-yield savings account products, and Cross River Bank for the Revolut Visa Credit Card. Revolut also states that it plans to introduce new products as a licensed bank, including personal loans, directly-issued credit cards, and more.
Revolut currently has more than 70 million users worldwide and operates in 40 global markets. In November of last year, the neobank closed a new investment round that valued the company at $75 billion.
What They’re Saying:
In a statement, Revolut co-founder and CEO Nik Storonsky said of this development, “The United States is a key pillar of our global growth strategy. Filing for a national bank charter is a major milestone toward our vision of building the world’s first truly global banking platform.”
Storonsky continued, “This charter will give us the direct control needed to innovate faster and deliver the Revolut experience to millions more Americans as we move toward our goal of 100 million customers.”
My Thoughts:
Obviously, this is a big step for Revolut. This news also settles the apparent debate the company was having as to whether it should look to acquire an existing U.S. bank or apply for its own license. Personally, I think this is a better way to go — although I can’t say for sure whether or not it will ultimately work out for them.
As a fan of Revolut overall, I do hope that they are approved… partially just because I’d love to see what they could do with this U.S. platform as an FDIC-insured bank. Of course, I don’t anticipate that this will be a speedy process, so it could be some time before we get to see what a Revolut Bank US, N.A. would have to offer.
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