STAMFORD, Conn. — Revolut took a major step toward becoming a full-service American bank after receiving conditional approval from the Office of the Comptroller of the Currency for a national bank charter.
The British financial-technology company still needs approvals from the Federal Deposit Insurance Corporation and the Federal Reserve before it can fully launch banking operations in the United States.
But the OCC decision moves Revolut significantly closer.
The company has approximately 80 million customers worldwide and has built much of its growth around mobile banking, foreign-exchange services, multicurrency accounts and international payments.
Revolut plans to base its U.S. bank in Stamford, Connecticut, where it expects to invest approximately $95 million in capital and employ roughly 160 people.
Its planned U.S. products include checking accounts, installment loans, credit cards, foreign-exchange services and eventually a stablecoin.
That matters because Revolut would no longer simply be a financial app relying on another bank’s infrastructure.
A banking charter would allow it to move much deeper into deposits, lending and payments.
It would also give Revolut more control over the economics of its U.S. business.
Fintech companies traditionally earn fees by sitting on top of traditional banks. Once they become banks themselves, they can potentially capture more of the revenue from deposits, lending and transaction activity.
For small and midsize businesses, the most important part may be Revolut’s international reach.
Companies increasingly operate across borders, paying vendors overseas, employing remote workers, buying inventory in foreign currencies and receiving payments from customers in different countries.
Traditional banking services can make those transactions expensive and slow.
Revolut has built much of its brand around making multicurrency banking simpler and cheaper.
If it connects a U.S. bank directly into its existing European and Latin American infrastructure, it could become a more serious competitor for businesses that regularly move money across borders.
The bigger story is what is happening to banking itself.
For years, fintech companies competed with banks by building better apps.
Now some of those companies are trying to become the bank.
That puts pressure on traditional institutions not only to improve digital products, but also to compete on fees, foreign-exchange pricing and ease of use.
The remaining regulatory approvals are still important, and conditional OCC approval does not guarantee a final launch.
But Revolut’s move shows that the line between fintech and traditional banking is disappearing quickly.
For consumers and businesses, that could mean more competition.
For established banks, it means another global rival is getting closer to entering their core business.
JBizNews Desk | Stamford
© JBizNews.com All Rights Reserved. Reproduction or distribution without written permission is prohibited.
