Key facts
- Revolut has received conditional approval for a US national banking license from the Office of the Comptroller of the Currency (OCC).
- This approval is seen as a significant step towards Revolut's potential initial public offering (IPO).
- The license allows Revolut to conduct direct deposit taking, lending, and card issuance in the US.
- Competitors like Wise and Bunq have recently had their US banking license bids blocked by the OCC.
- Revolut's previous attempt at a US license stalled due to regulatory friction and financial control concerns.
- The company is currently in a secondary share sale that could value it at $115 billion.
Revolut has achieved a significant milestone in its global expansion by securing conditional approval for a US national banking license from the Office of the Comptroller of the Currency (OCC). This development is viewed as a major boost to the fintech company's prospects for a long-awaited public debut.
The approval allows Revolut to directly engage in deposit taking, lending, and card issuance within the United States, removing previous reliance on sponsor banks. Analysts suggest this move materially strengthens Revolut's pre-IPO narrative.
This success comes at a time when other fintech firms have faced setbacks in the US market. In recent weeks, the OCC blocked bids from money transfer firm Wise and Europe's second-largest neobank, Bunq. Monzo also recently announced its withdrawal from US operations to concentrate on the European market.
Revolut's journey to this point has not been without challenges. The company began its second bid for the US license in March, following a previous attempt at the state level in 2021 that ultimately stalled and was withdrawn by late 2023. That earlier effort was hampered by regulatory friction, a substantial $20 million loss due to a flaw in its US payment system, and concerns regarding its internal financial controls.
Despite these hurdles, Revolut has maintained its global ambitions, targeting 100 million customers by mid-2027. The company has also recently secured other international authorizations, including in Australia in July and a permit from the European Central Bank via its French operations, following its full UK banking permit in March.
The recent regulatory wins are expected to solidify Revolut's substantial valuation. The company is currently engaged in a secondary share sale that could potentially value it at $115 billion. Analysts note that while regulatory approvals are crucial endorsements, building customer trust will be the key challenge for Revolut as it aims to transition from a successful fintech to a mainstream bank.