Revolut, UK’s biggest fintech, has received conditional approval from the US Office of the Comptroller of the Currency (OCC) for a national bank charter, moving the company closer to establishing a full-fledged banking operation in the United States.
The approval is a major regulatory milestone for the London-based financial technology company, which plans to launch Revolut Bank US as early as next year.
However, the OCC approval is not the final step. Revolut must still secure approval from the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) before it can begin operating as a US bank.
“Conditional OCC approval is an important first step towards establishing the proposed Revolut Bank US,” said Nik Storonsky, Revolut’s founder and chief executive.
“It gives us the foundation to build in the world’s largest financial market and bring the full Revolut experience to millions of Americans.”
The latest application marks Revolut’s second attempt to secure a US banking licence. The company previously pursued a state-level banking licence in California in March 2021, but the application ultimately stalled amid years of regulatory scrutiny and was withdrawn in late 2023.
Among the challenges faced during its earlier US push were concerns about Revolut’s internal financial controls and a flaw in its US payment system that resulted in a reported $20 million loss.
Revolut’s renewed US banking push comes after the company secured its full UK banking licence this year following a four-year wait. It has also obtained a fresh banking permit from the European Central Bank.
Revolut Targets Prime Place in US Market
Revolut’s progress comes against a difficult regulatory backdrop for European fintech companies seeking to expand into the US banking market. The OCC recently blocked applications from two other European fintechs, money-transfer company Wise and Dutch neobank Bunq.
Wise, which has operated in the US since 2015 under a money transmitter licence, was denied a banking licence amid what US regulators described as “significant supervisory and compliance concerns” relating to its anti-money laundering controls.
Bunq, meanwhile, was asked to develop a plan more specifically designed for the US market. The OCC also raised concerns about chief executive Ali Niknam’s proposed part-time management of the company’s US operations.
Monzo confirmed earlier this year that it had abandoned its US operations, choosing instead to focus on Europe under new chief executive Diana Layfield. Payments company Zilch also said it had “curtailed” its US operations in its 2024 accounts, despite previously building a US buy-now-pay-later waitlist of more than 150,000 customers.
For Revolut, the conditional OCC approval provides a route to compete more directly in the world’s largest banking market, although the company still faces further regulatory approvals before its US banking operation can open.
