Revolut submits a draft application for a banking charter in the United States

LONDON (Reuters) – London-based fintech startup Revolut said on Monday it had taken the first step in applying for a U.S. banking license and launching its services for businesses in 50 states.

One of Europe’s best-known fintech startups, Revolut opened its US virtual doors at the start of the coronavirus pandemic in partnership with a local bank, following US launches by European competitors Monzo and N26.

The company said a license would allow it to offer more services to U.S. customers, such as overdraft protection, loans and deposit accounts.

“If you just partner with a local bank, you aren’t able to provide all the products you need,” said Nik Storonsky, co-founder and CEO of Revolut. “You rely on the infrastructure and processes of the other bank. “

Storonsky said initial growth figures in the United States were hit by the pandemic, which forced people to stay at home and cut back on travel. Revolut currently approaches 200,000 retail customers in the United States and 15 million worldwide.

It is now launching its services for small and medium-sized businesses across the United States, which Storonsky says is a more pandemic-resistant offering.

Services include free and instant money transfers between businesses registered with Revolut Business, as well as expense and subscription management tools.

Revolut’s flagship product is an app-connected debit card that allows users to spend different currencies at the interbank exchange rate with low fees.

Analysts and investors have been skeptical about whether the newcomers could gain traction with U.S. customers in an increasingly crowded digital banking market.

Revolut’s submission of a draft application to the Federal Deposit Insurance Corporation and the California Department of Financial Protection and Innovation comes months after the announcement of the submission of a UK banking license application. United.

She has held an EU banking license in Lithuania since the end of 2018.

Reporting by Anna Irrera; Editing by Jan Harvey

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