Revolut, a fintech firm, has applied for a U.S. national bank charter, as part of their second effort to get a banking license in the United States and further establish themselves as a large presence in North America. The London-based digital bank made this announcement on Thursday.The OCC has accepted an application to establish the bank known as "Revolut Bank US, N.A." The approval of this application would allow Revolut to expand its offering of services within North America, and operate under strict regulations defined by US banking laws as a formal bank.<h2>Strategic Move to Enter the US Market</h2>Revolut's application for a new national bank charter in the United States is part of its strategy to enter into and grow within North America. Obtaining a national bank charter will help Revolut be able to offer: Expanded product offerings: FDIC-insured accounts and a full range of lending and payment options directly to customers in the U.S.; Regulatory Legitimacy: Improved reputation in the U.S. as a legitimate financial institution along with greater trust from consumers and commercial partners; Operational Authority: Complete authority to function independently as a national banking institution, free of any outside reliance upon the funding source(s) for conducting its business. As part of Revolut's overall strategy for international expansion, the company has also experienced significant levels of growth throughout Europe, Asia/Pacific, and Latin America.<h2>New CEO will Bring Fintech Experience to Revolut</h2>As part of the overall application process for becoming a bank, Revolut appointed Cetin Duransoy as the new U.S. CEO. He has over 20 years of experience working in all three sectors, which means he will be able to help Revolut with its large growth strategy in the U.S.<h2>Duran Serving as US CEO of Fintech Marketplace Raisin</h2>Prior to this, Duran served as the US Chief Executive Officer (CEO) at Raisin, where he led strategic expansion efforts and created innovative technology-driven banking solutions. His appointment is consistent with Revolut's philosophy of bringing together Financial Technology (Fintech) Innovation and Regulatory Compliance in the US market.Duran will take over from Sid Jajodia, who will continue to work with Revolut as its Global Chief Banking Officer and ensure that the Company’s international banking strategy remains consistent.<h2>Regulatory Context and Implications</h2>The achievement of a US federally recognized national bank charter is an essential first step toward establishing full federal oversight of fintech companies looking to do business as a federally insured bank from within the United States. A national bank charter allows a company to: <ol><li data-list="bullet">-Accept deposits that are insured by federal insurance (FDIC), which signals to potential customers very good indications of trust and reliability.</li></ol> <ol><li data-list="bullet">-Offer lending, payments and digital banking products directly, instead of through third party partners.</li></ol> <ol><li data-list="bullet">-Expand its compliance capabilities and develop risk management procedures that comply with US banking regulations.</li></ol> The determination that Revolut had about being able to achieve regulatory approvals was shown to be very clear due to their second filing. The approval of a charter would allow them to be included in the group of fintech companies that have received national bank charters and approved their ability to expand within the US, e.g., SoFi and Varo.<h2>Market Impact and Strategic Opportunity</h2>Analysts are noting how the growth in digital banking adoption aligns with Revolut's expansion into the US. An increase in demand from US consumers for neobanks through the fintech category (due to their lower bank fees, mobile payments, and digital financial tools) is one strong point of strategy. Leveraging its global infrastructure will enable Revolut to offer international banking products and technology to US customers. This includes offering the ability to buy/sell/transfer cryptocurrency and providing currency exchange/transfer capabilities, as well as budgeting tools through the usage of its banking technology.Gaining a national bank charter increases Revolut's credibility in the financial world allowing it to create partnerships with payment networks, other fintech platforms, and other financial institutions. Revolut will also be able to expand and grow much quicker in the US by obtaining a national bank charter, as well as for its product/service offerings including deposits and foreign exchange.<h2>Challenges Ahead</h2>Revolut has big plans to expand into the U.S., but it also has to address a number of obstacles, including: Regulatory concerns account for the OCC and FDIC having extensive programs with which to review companies for capital sufficiency, risk management, and governance structures. Revolut will also face stiff competition from other established financial technology firms and traditional banks who also operate in the U.S. Revolut must demonstrate its capabilities to meet all required US banking standards while still being nimble and agile as a fintech. While these challenges present a clear path forward for Revolut, the company's recent changes in leadership and the company's ability to re-file indicate a strong commitment from management to successfully establish a solid presence in the U.S. market.<h2>Conclusion</h2>Revolut's desire to obtain a US national banking license is part of its broader strategy to expand into North America. The appointment of Cetin Duransoy as Revolut's CEO for the US and the company's wealth of experience in global banking, create the foundation for the bank to successfully compete in a fast-growing digital banking environment. If granted a national charter, Revolut Bank US, N.A. would offer a multitude of fully FDIC-insured banking services, lending, and payment products, which would help enhance Revolut's brand and market reputation in the US.This filing demonstrates to the industry that Revolut intends to meaningfully grow in the US, using regulatory approvals, innovation in fintech, and its experienced leadership team to gain a large percentage of the rapidly expanding digital banking marketplace.

Revolut applies for a US national bank charter to expand services, gain FDIC backed accounts, and strengthen its push into the American digital banking market.

Revolut Files for US National Bank Charter in Second Push Into North America

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