Dutch digital financial institution Bunq is plotting re-entry into the U.K. to tap into a “huge and underserved” industry of some 2.8 million British “electronic nomads.”
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PARIS — Dutch electronic lender Bunq is hoping it will control to protected a banking license from U.K. money regulators later on this 12 months or early up coming 12 months, the firm’s CEO and founder Ali Niknam told CNBC.
“I hope we will get somewhere by the close of the calendar year, possibly early next calendar year, for the reason that the U.K.’s processes could be a little bit unique to Europe since it truly is a various regulatory location,” Niknam claimed in an job interview last week at the Viva Tech conference in Paris.
“I will not know when they are heading to say indeed, but so much I have small cause to believe that that we will not likely be productive.”
Bunq, known for its rainbow-colored cards and a concentrate on so-identified as “digital nomads” not sure by any just one region or locale, to begin with launched in the U.K. in 2019. But the financial institution was forced to exit the region in late 2020 since of Brexit.
The passage of Brexit into legislation meant that EU-primarily based money establishments couldn’t count on their personal place authorizations to run in the U.K. market. At present, Bunq only holds a banking license with the Dutch central financial institution.
Difficulties of reentering British isles marketplace
Now, Bunq is plotting a reentry into the U.K. current market. The agency final yr submitted an application with the Economical Perform Authority for an digital dollars establishment license. It says a U.K. start would permit it to tap into a “substantial and underserved” sector of some 2.8 million British digital nomads.
That will show challenging, while. Rival European fintech Revolut, which is primarily based in Britain and at present has an digital revenue establishment license, has been making an attempt for some decades to safe its U.K. banking license.
To be guaranteed, a banking license is various from an e-cash license. The important variation is that a banking license gives companies authorization to offer loans. Monzo and Starling are among the the handful of U.K. buyer fintech platforms that maintain their have financial institution licenses.
“We are doing work as difficult as we can, the U.K. regulator has been incredibly responsive, dialogue is ongoing, I do not know how extended it can be likely to choose, but matters feel to be transferring,” Niknam informed CNBC.
Started in 2012 in Amsterdam by Dutch tech entrepreneur Ali Niknam, Bunq has since developed to become one of Europe’s most significant neobanks over-all, with 12.5 million consumers across Europe and deposits of 8 billion euros ($8.6 billion). It was final privately valued by buyers at 1.65 billion euros.
Earlier this yr, Bunq noted its initially comprehensive year of profitability, making 53.1 million euros in web gain in 2023. Bunq is also pursuing expansion in the United States, owning previously submitted for a U.S. federal bank constitution in April 2023.
