Revolut Drops US Bank Takeover Plans

Revolut has dropped plans to acquire a US bank, opting instead to pursue an independent banking license as it looks to accelerate its long-term expansion in the American market.

The UK’s largest digital bank had previously been exploring the takeover of a nationally chartered US lender, a move that would have allowed it to bypass the lengthy process of applying for a banking license from scratch.

In September, Revolut was considering such an acquisition as a way to fast-track growth in the US, where it has been steadily building its customer base since launching in 2020.

However, the fintech has now reportedly made a U-turn as it concluded that acquiring a US bank could prove more complex than initially anticipated.

One key hurdle was the possibility that purchasing a community bank would require the company to maintain physical branches, which contradicts its digital-first model.

Any takeover would also need approval from US regulators, including sign-off on a change in ownership, adding further uncertainty and potential delays.

Instead, Revolut is now reportedly in discussions with US authorities about submitting an application for a banking license through the Office of the Comptroller of the Currency (OCC).

The company is reportedly betting that the approval process could be faster under the current regulatory climate, which it believes has become more permissive following changes at the OCC after Donald Trump regained the presidency.

Revolut has previously described the US as central to its long-term growth strategy and reiterated its ambition to operate as a fully licensed bank in the country.

While it has emphasised that no final decision has been made and plans remain subject to change, the neobank has suggested it is hopeful the licensing process could move at pace due to the current deregulatory push.