Dutch neobank Bunq takes first step in entering U.S. market

One of Europe's largest neobanks took the first step Tuesday toward expanding into the U.S. market.

Dutch digital bank Bunq announced it applied for a broker-dealer license with FINRA and the SEC. The process will allow it to fast-track its entry into the U.S. market while it reapplies for a full banking license later this year.

"It's always been Bunq's dream to launch in the U.S.," Ali Niknam, Bunq's founder and CEO, told American Banker. "The current administration seems to embrace innovation and progress and we're confident we'll land the banking permit ultimately. A broker-dealer license is a big first step that will allow us to swiftly launch all the countless products that don't require a full banking license."

By applying for a broker-dealer license first, Bunq says it will "gather operational insights and user feedback" before submitting for the full license. 

Once it obtains broker-dealer authorization, Bunq will be able to offer nearly all of its services stateside with the exception of savings deposits. U.S.-based users will be able to use its cash management features like automatic transfers to FDIC-insured accounts as well as invest in stocks, mutual funds and ETFs. Users will also eventually be given access to debit cards via its partnership with Mastercard. 

"We're bringing the user-centric vision we're known for in Europe to the U.S.," Niknam said. "As we start building a relationship with an entirely new community, we'll define success in how well we can listen, learn and adapt our product to what U.S. users actually need. In the end, if we build a product people love to use, growth will follow."

Bunq boasts its status as the second-largest neobank in Europe with 17 million customers, placing it behind Revolut's 50 million users but ahead of Monzo's 9 million and N26's just under 5 million. All figures are as of the end of 2024. 

The neobank also announced a 65% increase in year-over-year profits on Tuesday in its annual account filings. Bunq reported its net profit for 2024 as €85.3 million ($96 million USD), up from  €51.6 million ($58 million) in 2023. The company also announced last year was its second consecutive year of profitability. 

The profit increase was a result of a 55% increase in net interest income and a 35% jump in net fee income.

Niknam founded Bunq in 2012. Two years later, it was granted its first official banking license by the Dutch Central Bank, making it the first bank to receive a European banking permit in over 35 years. 

Niknam, a serial entrepreneur, was the company's first sole investor before it raised $228 million in a Series A funding round in July 2021. The funding primarily came from Pollen Street Capital, a U.K. private equity firm, at a $1.9 billion valuation and marked the largest series A round ever secured by a European fintech. A year later, it became the first EU neobank to reach structural profitability. 

In 2022 the company acquired Tricount, an expense management app for groups. The acquisition led to the neobank adding 5.4 million users. 

Bunq holds a banking license from the European Union and has previously sought to expand markets. The neobank operated in the U.K. and had applied for an Electronic Money Institution license but Brexit restrictions forced it to withdraw in 2020. It applied for a U.S. federal bank charter in 2023 but later withdrew its application, noting issues between its Dutch regulator and American agencies.