Revolut is reportedly closing in on a decision over how to become a US bank.
Revolut has reportedly decided to apply for a US banking licence, a change from earlier plans to acquire an existing lender state side.
The decision, first reported by the Financial Times, would see the UK-based fintech pursue approval through the Office of the Comptroller of the Currency, allowing it to offer lending products, hold deposits, and operate nationally without relying on partner banks.
This is a change from Revolut’s previously reported plan of buying a US institution to fast-track regulatory access, which has become an increasingly adopted strategy by fintechs worldwide.
Earlier this month, Zilch agreed to acquire Lithuania-based Fjord Bank, securing a European banking licence in the process, which allows it to passport services across multiple markets while expanding its product offering.
Payment Expert has approached Revolut to comment on the report.
Pros and cons of both routes
Acquiring a bank can offer faster entry into fully regulated markets, giving an instant licence, established compliance teams and access to deposits. However, it also brings significant drawbacks, including legacy technology, inherited liabilities and the challenge of integrating a traditional banking culture into a fintech environment.
Applying for a licence directly is arguably a slower and more resource‑intensive pathway, potentially taking years and requiring significant investment in governance, risk, and capital frameworks before approval.
However, it offers a cleaner, more controlled foundation, allowing firms like Revolut to build modern systems from scratch and have full control of their regulatory relationship.
The change suggests Revolut sees more value in full control aligned with its super-app ambitions, even if it means navigating a longer regulatory process. It also points to growing confidence that approval is now within reach.
Timing the market
“US expansion has always been central to our global strategy,” Revolut CEO Nik Storonsky said in November 2024, though he acknowledged the company had struggled to find the right entry route.
“In the US, you need to be credit-driven,” he said. “So in the US, we need to have a banking licence to launch a product.”
Storonsky also admitted at the time that Revolut’s early expansion model of prioritising speed over regulatory depth had complicated its ability to secure approvals in more tightly regulated markets.
“For a long time I wanted to be as less regulated as possible, it was the completely wrong decision,” he added.
Sources cited by the Financial Times suggest Revolut now believes the regulatory route may be more viable than previously thought, pointing to changes in US policy environment and greater political interest in fostering competition within financial services.
During US President Donald Trump’s first term, the US rolled back elements of post-financial crisis banking regulation, easing compliance requirements for smaller and mid-sized lenders and altering competitive dynamics across the sector.
Now in his second term, Trump is already taking aim at traditional and established firms, pushing recently for a 10% credit card cap which will undoubtedly challenge Mastercard and Visa’s duopoly on the sector.
Global ambitions
Revolut’s latest moves abroad show just how aggressively fintech is pursuing its long‑term international strategy.
In recent months, the company has stepped up efforts to secure banking licences in multiple regions. Earlier this week, Revolut announced plans to obtain a banking licence in Peru, strengthening its presence in Latin America. Reports have also emerged of the firm being in talks to acquire Turkish digital bank FUPS.
This follows its September 2025 announcement that it would seek a full commercial banking licence in South Africa.
This growth aligns with Revolut’s ambition to reach 100 million customers by mid‑2027 and enter 30 new markets by 2030.
Despite its international progress, the company is still awaiting approval for a full UK banking licence. Regulators have slowed the process over concerns around risk controls and the pace of Revolut’s global expansion.
