European Neobank bunq Files for Banking License in US

Amsterdam-based neobank bunq has formally launched its campaign for an American banking license.

The company announced Wednesday (Jan. 7) that it had filed for a de novo banking license with the Office of the Comptroller of the Currency (OCC) as it targets “digital nomads,” or customers who live and work between the U.S. and Europe.

“Our users are building their lives across borders, so they need a bank that is safe, secure and easy to use, wherever they are,” Ali Niknam, founder and CEO of bunq, said in a news release. “We want to give them the freedom to live the way they want, whether they’re heading to America, coming to Europe, or moving between both.”

Once the license is approved, bunq will launch services beginning with U.S. metro areas with large expat communities. The company says it can help these users quickly build credit, often a challenge for new arrivals, by accessing European financial records.

The filing with the OCC follows the Financial Industry Regulatory Authority’s (FINRA) approval of bunq’s request for a broker-dealer license, filed earlier this year.

“With the broker dealer license secured and the full banking application submitted, bunq moves into the next phase of its plan to make its full services available to users in the United States,” the news release added.

PYMNTS wrote in October that bunq, which bills itself as Europe’s second-largest neobank, was part of a group of EU challenger banks putting down roots in the U.S. Other neobanks targeting the American market include Revolut and Monzo.

“The U.S. offers fertile ground for expansion: Gen Z, the first generation of true digital natives, is beginning to accumulate income, savings and purchasing power — and their expectations for banking services align neatly with the digital-first DNA of those providers,” that report said.

Research by PYMNTS Intelligence spotlights how attractive this age group is for digital-first challengers. Nearly three-quarters of Gen Z consumers report using a digital wallet at least once a week, compared with just 38% of Gen X.

And 62% of Gen Z consumers told PYMNTS they would consider using a neobank as their primary bank account provider, “a striking level of openness that outpaces all other generations,” the report added.

The path to these customers comes with challenges, the report said, including regulatory complexity and the cost of customer acquisition.

“Meanwhile, incumbent U.S. banks are not standing still; many have invested heavily in their own digital platforms and mobile-first experiences,” PYMNTS wrote.