Dutch virtual depot Bunq is plotting re-entry into the U.Ok. to faucet right into a “large and underserved” marketplace of a few 2.8 million British “digital nomads.”
Pavlo Gonchar | Sopa Photographs | Lightrocket | Getty Photographs
Dutch virtual depot Bunq on Tuesday stated it’s filed for broker-dealer registration within the U.S. because it appears to be like to additional make bigger around the Atlantic.
Bunq CEO Ali Niknam stated the broker-dealer software might be an preliminary step towards securing a complete banking license. He couldn’t do business in a company timeline for when Bunq will keep this authorization within the U.S. — however stated he’s excited for its enlargement possibilities within the nation.
Acquiring a broker-dealer license will ruthless Bunq “can offer our users who have an international footprint — which is the user demography we’re aiming for — a great number of our services,” Niknam informed CNBC. Bunq basically caters for “digital nomads,” people who can reside and paintings from any place remotely.
Bunq will have the ability to do business in maximum of its products and services within the U.S. excluding a financial savings account next securing broker-dealer authorization, Niknam added.
Bunq, which touts itself as a depot for “digital nomads,” lately has a banking license within the Eu Union. It has carried out for an Digital Cash Establishment (EMI) within the U.Ok. Bunq in the past had operations in Britain however compelled to pull back from the rustic in 2020 because of Brexit.
Bunq to begin with filed for a U.S. Federal depot constitution in April 2023. On the other hand, it withdrew the applying a yr upcoming, mentioning problems between its Dutch regulator and U.S. businesses. The corporate plans to resubmit its software for a complete U.S. banking license upcoming this yr.
65% leap in benefit
Past the replace on global growth, Bunq additionally on Tuesday reported a 65% year-over-year leap in benefit to 85.3 million euros ($97.2 million). That leap was once essentially pushed through a 55% building up in web hobby source of revenue, age web charge source of revenue additionally grew 35%.
In a similar way to fintech friends comparable to N26 and Monzo, Bunq has benefited from a prime rate of interest state through pocketing yieldings on buyer deposits sat on the central depot.
Bunq’s CEO informed CNBC that, age prime rates of interest have undoubtedly helped, extra normally Bunq is eye larger utilization of the platform and has been all in favour of price potency from an operational point of view.
“Because we are so lean and mean, and because we have set up all of our systems from scratch … we have been able to not only increase our profits, but also offer very good interest rates in the European market in general, and in the Netherlands specifically,” Niknam stated.
Extra not too long ago, central banks within the EU and U.Ok. and U.S. have moved to slash rates of interest in keeping with falling inflation and issues of an financial slowdown, which is able to chunk into depot profits.
Niknam stated he’s now not involved through the probability of charges coming i’m sick and expects possible declines in hobby source of revenue to be offset through a “diversified” earnings combine that incorporates source of revenue from paid subscription merchandise, in addition to brandnew options. Bunq not too long ago introduced a tool that lets users trade stocks.
“This is different in continental Europe to the U.K. We had negative interest rates for long,” Niknam informed CNBC. “So as we were growing, actually our cost base was also growing because we had to pay for all the deposits that people deposited a Bunq so I think we’re in a great position in 2025
Bunq is coming up against heaps of competition, especially in the U.S. market. America is already served by established consumer banking giants, including JPMorgan Chase, Bank of America, Wells Fargo and Citigroup. It’s also home to several major fintech brands, such as Chime and Robinhood.
