Neobank Bunq applies for US banking licence

European neobank Bunq has applied for a US banking licence, founder and chief executive officer Ali Niknam has revealed.

The European Union’s second largest neobank has filed a formal application to the Federal Deposit Insurance Corporation in the US.

In a blog post, Niknam wrote that Bunq is “going stateside” with a simple proposition, “offering a banking product that enables US consumers and businesses to bypass banking bureaucracy by opening a fully-fledged international bank account in just five minutes”.

Ali Niknam, chief executive of bunq

Niknam said: “Having expanded to over 30 markets within Europe, taking ‘the bank of The Free’ to ‘the Land of the Free’ is a logical next step.”

He wrote: “The US is home to a community of nearly five million digital nomads: expats, international entrepreneurs and professionals with strong ties to both sides of the Atlantic.

“We will introduce this large group of location-independent people to our proven, transparent and value-based banking model, one that gives them the freedom to live life on their own terms.”

In July 2021, Bunq was valued at €1.6 billion following an investment of €193 million and welcomed its first investment partner, Pollen Street Capital.

Last year, Bunq acquired Belgian fintech TriCount in May, which added 5.4 million new users, making it the second largest neobank in the EU.

Earlier this year, Bunq formed a strategic partnership with Ireland-based insurtech Companjon, to bring its customers an end-to-end embedded insurance solution.