British FinTech Revolut has confirmed earlier reports of its American banking plans.
The company is “actively looking” at whether to purchase a U.S. bank or to apply for its own banking license there, Revolut’s U.S. CEO Sid Jajodia told Reuters Tuesday (Sept. 23).
He added that “being a bank in every market we operate in is critical,” particularly in the U.S. where Revolut’s business is small.
The Reuters story followed a series of other news reports — citing unnamed sources — that Revolut was considering either acquiring an American bank or landing its own banking license in the U.S.
Also Tuesday, the company said it was preparing to launch consumer credit in the U.K. as it takes on traditional lenders.
As Reuters noted, Revolut has become the most valuable European FinTech, seeking a valuation of $75 billion in a secondary share sale. The company has 65 million customers, more than some of the biggest European banks, though its client deposit base and revenues are considerably smaller, the report added.
Reuters was reporting from the unveiling of Revolut’s new headquarters in London’s Canary Wharf financial district, where executives said the company would substantially expand its international footprint while still allocating $4 billion of a total $13 billion it wants to spend globally by 2030 to Great Britain.
The company’s international expansion efforts so far have included operations in Latin America, the Middle East and Asia.
“We are committed to the UK as our home country,” Revolut CEO and Co-founder Nik Storonsky said during the unveiling, soon after U.K. Finance Minister Rachel Reeves also spoke, praising Revolut and the British FinTech sector.
As PYMNTS noted last week in a report on the share sale, this has been a busy time for Revolut, which recently announced it had added an open banking tool to its payments gateway offering. The aim here is to let businesses accept quick, secure payments from a customer’s bank account.
“The payments landscape is evolving, and merchants are looking for solutions that eliminate fraud and increase optionality,” Alex Codina, general manager of merchant acquiring at Revolut, said in a news release. “Our new Pay by Bank feature gives them exactly that.”
During the same week the company announced it had received approval for a “Stored Value Facilities” license and a retail payment service license in the United Arab Emirates (UAE).
Source: https://www.pymnts.com/
