Dutch digital financial institution Bunq is planning a return to Britain to faucet right into a ‘massive and underserved’ market of round 2.8 million British ‘digital nomads’.
Pavlo Gonchar | Sopa photographs | Mild rocket | Getty Pictures
PARIS – Dutch digital financial institution Bunq hopes it will likely be in a position to safe a banking license from British monetary regulators later this yr or early subsequent yr, the corporate’s CEO and founder Ali Niknam informed CNBC.
“I am hoping we’ll get someplace by the tip of the yr, perhaps early subsequent yr, as a result of the British processes could be a bit of completely different to these in Europe as a result of it is a completely different regulatory space,” Niknam mentioned in an interview on the Viva final week Tech convention. in Paris.
“I do not know when they are going to say sure, however up to now I’ve little motive to consider we can’t achieve success.”
Bunq, identified for its rainbow-colored maps and a concentrate on so-called ‘digital nomads’ who should not tied to at least one nation or location, first launched in Britain in 2019. However the financial institution was compelled to go away the nation on the finish of 2020 due to Brexit.
The passage of Brexit into legislation meant that EU-based monetary establishments couldn’t depend on their very own nation’s permission to function within the UK market. At present, Bunq solely has a banking license with De Nederlandsche Financial institution.
Challenges of re-entering the UK market
Now Bunq is planning a return to the British market. The corporate utilized to the Monetary Conduct Authority for an digital cash establishment license final yr. It says a UK launch would permit it to faucet right into a “massive and underserved” market of round 2.8 million UK digital nomads.
Though that may show tough. Rival European fintech Revolut, which relies in Britain and at present holds an digital cash establishment license, has been attempting to safe its UK banking license for a number of years.
To be truthful, a banking license is completely different from an e-money license. The principle distinction is {that a} banking license provides corporations permission to supply loans. Monzo and Starling are among the many few UK client fintech platforms to have their very own banking licenses.
“We’re working as onerous as we will, the UK regulator has been very responsive, the dialogue is ongoing, I do not understand how lengthy it can take, however issues appear to be transferring,” Niknam informed CNBC.
Based in Amsterdam in 2012 by Dutch tech entrepreneur Ali Niknam, Bunq has since grown into considered 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 valued privately by buyers at 1.65 billion euros.
Earlier this yr, Bunq reported its first full yr of profitability, with a internet revenue of EUR 53.1 million in 2023. Bunq can also be aiming to broaden in america, having beforehand utilized for a US federal banking constitution in April 2023.
