Revolut Receives Conditional US Bank Charter Approval

Revolut has received conditional approval from the Office of the Comptroller of the Currency (OCC) for its national bank charter in the United States. The approval, granted on Wednesday, allows the UK-based fintech to move forward with plans to establish a bank in the U.S. However, it comes with limitations on four specific product lines.

Product Limitations

The OCC's approval requires Revolut to get additional supervisory sign-offs before launching four services. These services include leveraged currency trading, foreign exchange forwards, merchant acquiring, and correspondent banking for unaffiliated foreign banks. Evey Guo of FS Vector noted that the OCC's decision to limit these products is unusual. Other recent charter approvals did not impose such conditions. The OCC did not explain the reasons for these restrictions.

Future Plans and Challenges

Revolut founder and CEO Nik Storonsky called the OCC's conditional approval a crucial step toward launching Revolut Bank US. The company aims to offer its full range of services to American customers. Revolut previously tried to secure a state-level permit in California in 2021, but that application was withdrawn due to regulatory challenges. The firm has since secured a full banking license in the UK and a permit from the European Central Bank.

Revolut is also working to gain approvals from the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) before it can officially launch its U.S. bank. The company hopes to do this as soon as next year. In contrast, other fintechs like Wise and Bunq have faced challenges in entering the U.S. market. The OCC recently blocked their applications due to compliance concerns.

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Based on reporting by: americanbanker.com, cityam.com