In a significant strategic shift, London-based financial technology giant Revolut is now actively pursuing a de novo bank charter from the U.S. Office of the Comptroller of the Currency, according to a recent Financial Times report. This move marks a pivotal change from its initial strategy of acquiring an existing US bank, highlighting the complex regulatory landscape and ambitious growth plans defining the 2025 fintech arena. The decision underscores Revolut’s determined effort to secure a firmer foothold in the lucrative American market while simultaneously scaling its integrated cryptocurrency offerings.
Revolut’s Strategic Pivot on US Bank License
The Financial Times report, citing informed sources, reveals that Revolut has withdrawn its earlier plans to acquire a local US bank. Instead, the neobank is now focusing its efforts on obtaining a new banking license directly from the OCC. This regulatory body oversees all national banks and federal savings associations in the United States. Consequently, this pivot represents a more organic, albeit challenging, path to market entry.
Industry analysts view this shift as a calculated response to several market realities. Firstly, the acquisition landscape for suitable banking targets has become increasingly competitive and expensive. Secondly, a de novo application, while rigorous, offers Revolut greater control over its operational structure and brand integration from inception. This approach allows the company to build a US banking entity tailored to its specific technology stack and customer experience model.
Moreover, this strategy aligns with a broader trend where large fintech firms seek full banking charters to reduce dependency on partner banks. By obtaining its own license, Revolut can potentially offer a wider range of products, improve profitability on core services like lending, and exert greater control over compliance frameworks. The process, however, demands significant resources and entails navigating one of the world’s most stringent financial regulatory environments.
The Complex US Regulatory Landscape for Neobanks
Entering the US banking market presents a formidable challenge for any foreign fintech entity. The regulatory system is a dual state and federal framework, often described as a patchwork of rules. For a company like Revolut, the OCC charter provides a unified federal standard, but the application process is notoriously demanding. Applicants must demonstrate robust capital adequacy, detailed business plans, strong risk management protocols, and a clear benefit to the communities they intend to serve.
Several other fintech companies have embarked on similar journeys with varying success. For instance, Varo Money successfully obtained a national bank charter in 2020, becoming the first consumer fintech to do so. On the other hand, companies like Square’s industrial loan company (ILC) application have faced prolonged scrutiny and delays. The table below outlines key recent examples:
| Company | License Type | Status (as of 2025) | Primary Challenge |
|---|---|---|---|
| Varo Bank | National Bank Charter (OCC) | Approved & Operational | Pathfinding for consumer fintechs |
| Square Financial Services | Industrial Loan Company (ILC) | Approved after lengthy review | Commercial vs. consumer focus debates |
| SoFi | National Bank Charter (OCC) | Approved via acquisition | Integrating a traditional bank platform |
| Revolut | National Bank Charter (OCC) | Reportedly in Application Phase | Foreign ownership & global crypto integration |
Revolut’s application will likely receive particular attention regarding its global operations and its significant emphasis on cryptocurrency trading and holding services. US regulators remain highly cautious about digital assets, requiring stringent anti-money laundering (AML) and know-your-customer (KYC) controls. Revolut’s ability to present a watertight compliance plan for its crypto segment will be a critical component of its OCC review.
Expert Analysis on Market Entry Strategies
Financial regulatory experts note that Revolut’s pivot from acquisition to a de novo charter is a telling sign of market maturation. “Acquiring a bank provides instant infrastructure but also legacy liabilities and integration headaches,” explains Dr. Anya Petrova, a fintech regulation scholar at the Georgetown University Law Center. “A de novo application, while slower, allows a tech-native company like Revolut to design its US banking subsidiary around its own software and customer journey from day one. It’s a long-term play for control and scalability.”
Furthermore, this move occurs within a specific economic context. Interest rate environments and capital costs influence the viability of banking models. By holding a bank charter, Revolut US could gather customer deposits directly, creating a more stable and potentially cheaper funding base compared to relying on wholesale markets or partner bank balances. This structural advantage is crucial for building sustainable lending businesses and improving unit economics in a competitive market.
Cryptocurrency Services as a Core Growth Driver
Parallel to its banking license pursuit, Revolut continues to aggressively expand its cryptocurrency services globally. In the US, it currently offers crypto trading through a partnership with a regulated entity. Securing a bank charter could dramatically alter this dynamic. It might provide a more integrated framework for offering crypto-based products, such as potential crypto-backed lending or more seamless fiat on-ramps, all under the consolidated oversight of the OCC.
However, this integration presents a unique regulatory hurdle. The OCC, along with the Federal Reserve and FDIC, has issued guidance on crypto-asset risks for banking organizations. Revolut’s application must convincingly address:
- Risk Management: Detailed frameworks for market, liquidity, and operational risks tied to crypto.
- Custody Solutions: How customer crypto assets will be securely held and insured.
- Regulatory Compliance: Adherence to the Bank Secrecy Act (BSA) and sanctions rules in crypto transactions.
- Consumer Protection: Clear disclosures about the volatility and uninsured nature of cryptocurrency investments.
The company’s experience in offering crypto across dozens of other countries will be both an asset and a subject of scrutiny. Regulators will examine its global compliance record closely. Successfully navigating this could position Revolut as a leader in the convergence of traditional chartered banking and digital asset services, a key battleground for fintech relevance in the latter half of this decade.
Conclusion
Revolut’s reported pivot to seeking a new US bank license from the OCC is a strategic maneuver of high significance. It reflects a shift from buying market entry to building it, emphasizing long-term control and integration. This path, while laden with regulatory challenges, offers the potential for a more tailored and scalable US banking operation. Crucially, the success of this application is inextricably linked to Revolut’s ability to present a compelling and secure model for its cryptocurrency services within a regulated banking framework. The outcome will not only shape Revolut’s future in the world’s largest financial market but also serve as a key case study for the evolving relationship between global fintech platforms, national regulators, and the digital asset economy.
FAQs
Q1: What is a de novo bank charter?
A de novo bank charter is a license granted to a newly formed banking institution that is not the result of a merger, acquisition, or transformation of an existing entity. The application process with the OCC is comprehensive, requiring detailed plans for capital, management, and operations.
Q2: Why did Revolut switch from acquiring a bank to applying for a new license?
Reports suggest the acquisition strategy presented challenges, including high costs, integration complexity with legacy systems, and potential regulatory hurdles. A de novo application, though slower, allows Revolut to build a US bank from the ground up based on its own technology.
Q3: How does a US bank license help Revolut’s cryptocurrency business?
A bank charter could allow for more integrated crypto and traditional banking services under one regulatory roof. It may enable new product offerings and provide a stable deposit base to fund operations, but it also subjects all crypto activities to stringent federal banking oversight.
Q4: How long does the OCC bank charter application process typically take?
The process is lengthy and can take 18 to 24 months or more from initial application to final decision. It involves multiple stages of review, requests for additional information, and a thorough examination of the business plan and risk management frameworks.
Q5: Can Revolut operate in the US without a bank license?
Yes, Revolut currently operates in the US through money transmitter licenses and partnerships with existing chartered banks. These arrangements allow it to offer payment and crypto trading services. A full bank charter would expand its permissible activities to include taking insured deposits and offering a broader range of credit products.
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