Dutch digital financial institution Bunq is planning to re-enter the UK to faucet into the “giant and underserved” market of round 2.8 million British “digital nomads”.
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PARIS – Dutch digital financial institution Bunq hopes to acquire a banking license from Britain’s monetary regulator later this 12 months or early subsequent 12 months, CEO and founder Ali Niknam instructed CNBC.
“I hope we will make progress by the tip of this 12 months or early subsequent 12 months as a result of the method within the UK could also be barely totally different than in Europe as a result of it’s a totally different regulatory space,” Nicknan stated in an interview final week on the Viva Tech convention in Paris. .
“I do not know when they’ll say sure, however to date I’ve no motive to consider we can’t achieve success.”
Bunq, identified for its rainbow-colored playing cards and give attention to so-called “digital nomads” who will not be certain by any nation or area, initially launched within the UK in 2019. Europe.
Brexit turning into legislation implies that EU monetary establishments can’t depend on their nationwide authorizations to function within the UK market. Presently, Bunq solely holds a banking license from the Dutch Central Financial institution.
Challenges of re-entering the UK market
Now Bunq is planning to re-enter the UK market. The corporate submitted an utility for an digital cash establishment license to the Monetary Conduct Authority final 12 months. The corporate stated launching within the UK would give it entry to a “giant and underserved” market of round 2.8 million British digital nomads.
Nonetheless, it will show troublesome. Rival European fintech firm Revolut, headquartered within the UK, at the moment holds an digital cash establishment license and has been making an attempt to acquire a British banking license for years.
To make sure, a banking license is totally different from an digital cash license. The principle distinction is that the banking license permits the corporate to supply loans. Monzo and Starling are among the many few UK shopper fintech platforms with their very own banking licenses.
“We’re doing our greatest, the British regulators have been very responsive, conversations are ongoing, I do not know the way lengthy it’ll take, however issues appear to be altering,” Nicknan instructed CNBC.
Based in Amsterdam in 2012 by Dutch tech entrepreneur Ali Niknam, Bunq has grown to turn out to be considered one of Europe’s largest neobanks, with 12.5 million customers and €8 billion ($8.6 billion) in deposits throughout Europe. Buyers final privately valued the corporate at 1.65 billion euros.
Earlier this 12 months, Bunq reported its first full-year revenue, with a web revenue of 53.1 million euros in 2023.
