Revolut has received
conditional approval from the US Office of the Comptroller of the Currency for
a national bank charter.
Revolut founder and
CEO Nik Storonsky announced the development in a LinkedIn post today. He said
the approval marks a major step towards establishing a full-service banking
operation in the United States.
In January this year, Revolut
moved away from plans to enter US banking through an acquisition and
instead pursued a national banking charter directly. Finance Magnates reported
that the company had returned to the OCC as it sought to expand its banking
operations in the US.
OCC Approval Isn’t the Finish Line
The conditional
approval does not allow Revolut to immediately operate as a fully established
national bank. The company still has regulatory work to complete with the OCC,
the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve.
Storonsky said Revolut
started 11 years ago with a card and an app that helped customers save money on
foreign exchange. Since then, the company has expanded its products and entered
new markets.
He said Revolut cannot
build a “truly global bank” without becoming a full-service bank in the United
States. “This isn’t the finish
line,” Storonsky said, referring to the remaining regulatory work.
He added that the
approval followed years of work on the technology, infrastructure and controls
required to operate as a global bank.
Revolut Targets Full US Banking Access
Revolut’s stated goal
is to serve US customers directly with its broader range of products and
services. Storonsky said the company aims to serve Americans “fully and
directly, with the complete Revolut experience.”
The company will now
continue working with the OCC, FDIC and Federal Reserve to complete the
requirements associated with the charter.
This article was written by Tareq Sikder at www.financemagnates.com.
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