Dutch Digital Bank Bunq is plotting the re -entry in the United Kingdom to take advantage of a “large and unattended market of about 2.8 million British” digital nomads “.
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The Dutch Bunq Digital Bank said Tuesday that the Bolsa runners registry was requested in the USA., Since it seems to expand even more through the Atlantic.
The Bunq CEO, Ali Niknam, said the application of the Corridors dealership will be an initial step to ensure a complete bank license. He could not sacrifice a firm timeline for when Bunq will ensure this authorization in the United States, but said he is excited for his growth prospects in the country.
The change of a runner distributor license will mean that Bunq “can sacrifice our users who have an international footprint, which is the demography of users that we point to a large number of our services”, Niknam Toold CNBC. Bunq mainly serves “digital nomads”, people who can live and work from anywhere remote.
Bunq may sacrifice most of its services in the US. UU. With the exception of a savings account after ensuring the authorization of the Corridors Concessionaire, Niknam added.
Bunq, which is a bank for “digital nomads”, currently has a bank license in the European Union. He has requested an electronic money institution (EMI) in the United Kingdom that Bunq previously had operations in Britain, but forced to withdraw from the country in 2020 due to Brexit.
Bunq Initiax requested a letter from the Federal Bank of the United States in April 2023. However, he withdrew the request a year later, citing problems between his Dutch regulator and the US agencies. The company plans to submit its application for a complete banking license from the United States at the end of this year.
65% jump into profits
Beyond the update of the international expansion, Bunq also reported on Tuesday a jump year after 65% of profits at 85.3 million euros ($ 97.2 million). That jump was mainly driven by a 55% increase in income from net interest, while net rates revenues also grew by 35%.
Similar to Fintech’s pairs such as N26 and Monzo, Bunq has fished a high interest rate environment by pushing yields in customer deposits sitting in the Central Bank.
Bunq’s CEO told CNBC that, although high interest rates have certainly helped, in general, Bunq is seeing greater use of the platform and has focused on profitability efficiency from an operational perspective.
“Because we are very thin and bad, and because we have established all our systems from scratch … we have bone capable of not only increasing our profits, but also sacrificing interest rates in the European market in general,” Niknam said.
More recently, central banks in the EU and the United Kingdom and the United States have moved to reduce interest rates in response to the fall in inflation and concerns of an economic deceleration, which can bite bank profits.
Niknam said that it is not concerned about the possibility that rates will decrease and expects possible decreases in interest income to be compensated by a “diversified” income combination that includes income subscript products, as well as new features. Bunq recently launched a tool that allows users to exchange actions.
“This is different in continental Europe to the United Kingdom, we had negative interest rates for a long time”, “so as we grew up, our cost of cost was also growing, we had to pay all the deposits that people deposited a Bunq, so I think we are in a large position in 2025.
Bunq faces a lot of competition, especially in the US market. America is already attended by established consumer bank giants, including JPMorgan Chase, Bank of America, Wells Fargo and Citigroup. It is also home to several important final brands, such as Chime and Robinhood.