Revolut US Bank Charter Application: What You Need to Know

Revolut Pursues U.S. Bank Charter

Revolut, a fintech company headquartered in London, has revealed its intention to secure a bank charter within the United States. A preliminary application has been filed with both the FDIC and the California Department of Financial Protection and Innovation.

Expanding Operations with a Charter

Successful acquisition of a California charter would enable Revolut to function as a fully independent bank across the entire U.S. market. Negotiations with regulatory bodies are currently in progress, suggesting the approval process may be lengthy.

Gaining a U.S. banking charter will allow Revolut to broaden its range of financial services. Specifically, it will unlock greater potential in the areas of lending and savings products.

Current U.S. Partnerships

Currently, Revolut collaborates with Metropolitan Commercial Bank within the U.S. This partnership facilitates deposit handling and FDIC insurance for customers. Metropolitan Commercial Bank also manages the issuance of Revolut cards.

Launch of Revolut Business

Revolut is also introducing Revolut Business to the U.S. market. These accounts are designed to streamline international payment processes for businesses.

Companies utilizing Revolut Business can benefit from both virtual and physical debit cards for payments. The service is now accessible in all 50 states, building upon a European user base of 500,000 businesses.

Global Customer Base and Licensing

Revolut’s financial super app currently serves 15 million customers, primarily located in the U.K. and the European Union. The company has also recently applied for a banking license in the U.K., its home and largest market.

Within Europe, Revolut operates under a specialized license granted by the Bank of Lithuania. A segment of its customer base is already transitioning their accounts to Revolut Bank.

Competition for Charters

Revolut is not alone in its pursuit of a U.S. bank charter. Brex announced its application for a charter in Utah last month. Varo Bank successfully obtained its own charter in the previous year.

The Benefits of Independence

Utilizing the charter of an existing bank can be advantageous for initial growth. However, securing an independent charter becomes crucial for launching innovative products and increasing revenue streams.

Ultimately, obtaining its own charter will allow Revolut to fully capitalize on market opportunities and expand its financial offerings.