Dutch digital bank Bunq announced today (Tuesday) that it has filed for broker-dealer registration in the US. The move is part of its efforts to expand into the US market.

Bunq’s CEO, Ali Niknam, stated that securing broker-dealer authorization is the first step toward obtaining a full banking license in the US While he could not provide a specific timeline for this, Niknam expressed optimism about Bunq’s growth prospects in the country, CNBC reported.

Bunq Eyes Full US Banking License

With broker-dealer authorization, Bunq will be able to offer most of its services in the US, except for savings accounts. The company primarily serves digital nomads—individuals who can live and work remotely.

Bunq currently holds a banking license in the European Union and has applied for an Electronic Money Institution (EMI) license in the UK. The company previously operated in the UK but had to withdraw in 2020 due to Brexit. Bunq also filed for a US Federal bank charter in April 2023 but withdrew the application in April 2024, citing regulatory issues. The company plans to reapply for a full US banking license later this year.

Digital Bank Reports 65% Profit Increase

In addition to its expansion efforts, Bunq reported a 65% year-over-year increase in profits, reaching 85.3 million euros ($97.2 million). This growth was driven by a 55% rise in net interest income and a 35% increase in net fee income. Like other fintech firms such as N26 and Monzo, Bunq has benefited from high interest rates by earning yields on customer deposits held at central banks.

Niknam highlighted Bunq’s operational efficiency as a key factor in its profitability. He noted that the company’s lean structure, combined with the fact that its systems were built from scratch, enabled it to offer competitive interest rates while increasing profits.

You may want to read it at FinanceMagnates.com: bunq Jumps into Stock Trading: Targets Digital Nomads.

Interest Rate Cuts Won’t Affect Profit

Although central banks in the EU, UK, and US have recently cut interest rates in response to falling inflation and economic slowdown concerns, Niknam is not worried. He believes that any potential reduction in interest income will be offset by a more diversified revenue mix, including income from paid subscription products and new features like stock trading tools.

Bunq faces significant competition in the US market, where established banks like JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup dominate, alongside fintech players such as Chime and Robinhood.

This article was written by Tareq Sikder at www.financemagnates.com.FinTechRead More

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