Revolut takes step closer to US bank launch after clearing key regulatory hurdle

Revolut, the UK-based fintech giant, is inching closer to opening a bank in the US after receiving conditional approval from the Office of the Comptroller of the Currency (OCC). The company is now progressing its application with the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) as it aims to launch its US bank within the next year.

Revolut's founder and CEO, Nik Storonsky, expressed excitement about the conditional approval, stating that it provides the foundation to enter the world's largest financial market and offer the full Revolut experience to millions of Americans.

This marks Revolut's second attempt at securing a US permit, as the company tried in March 2021 through Californian regulators, but the initial effort ultimately stalled and was withdrawn in late 2023 due to regulatory friction. The most recent attempt comes after Revolut secured its full-fat license in the UK last year and a fresh permit from the European Central Bank.

Revolut's move comes as other fintechs have turned to the US for expansion in recent years, but many have faced challenges in entering the market. In a span of two weeks, the OCC blocked bids from money transfer firm Wise and Europe's second-largest neobank, Bunq. Wise was blocked due to concerns over its anti-money laundering controls, while Bunq was told to produce a more market-specific plan.

The OCC also appeared to disapprove of Bunq's plan for its US arm to be managed on a part-time basis by Ali Niknam, the company's CEO.

Despite these setbacks, Revolut remains undeterred and continues to pursue its goal of entering the US market. The company's persistence sets it apart from other fintechs that have either withdrawn from the market or scaled back their operations, such as Monzo, which abandoned its US operations to focus on Europe.