Dutch neobank bunq is set to expand its services to the United States, following a successful decade in Europe. The company has applied for a US banking license with the Federal Deposit Insurance Corporation (FDIC) in New York, aiming to target the five million European expats, international entrepreneurs and professionals residing in the US. The Amsterdam-based fintech firm has seen rapid expansion across 30 European countries, becoming Europe’s second-largest neobank, with a valuation of €1.6 billion.
Targeting European expats and digital nomads
With a focus on catering to the needs of European expats, international entrepreneurs, and professionals in the US, bunq aims to simplify the banking process for these users. Traditional banks in the US often have hidden fees and minimum balance requirements, which bunq looks to eliminate. The neobank’s customised app is designed for users with an international lifestyle, offering features such as savings on exchange rate surcharges, the use of multiple currencies, and automatic budgeting.
There were 4.9 million European expats in the US by the end of 2021, a group often facing complex rules and a lack of transparent financial services. bunq’s mission is to provide a tailored product that meets the specific needs of these users. By leveraging their roots in Europe and understanding what Europeans expect from a bank, bunq aims to provide a better fit than US banks, while also connecting Americans in Europe to US financial services.
Impressive growth and profitability
In recent years, bunq has expanded rapidly across more than 30 European countries, becoming the second-largest neobank in Europe after acquiring Belgian fintech Tricount, which added 5.4 million users, in May 2022. The company has also made history by being the first European neobank to achieve operational profit in 2021. Bunq’s founder, Ali Niknam, has invested over €100 million in the company since its establishment in 2012, with bunq raising an additional €193 million at a €1.6 billion valuation in the largest Series A round ever for a European fintech.
Timeline and differentiation strategy
While the timeline for bunq to receive FDIC approval for a US banking license is expected to take one year, the neobank is already planning its strategy to differentiate itself from existing digital banks and financial service providers in the US market. By leveraging its European background and extensive experience in digital banking, bunq aims to offer a unique, user-focused approach to banking, targeting digital nomads and those with an international lifestyle.
CEO and founder Ali Niknam stated, “We can’t wait to let digital nomads in the US bank without hassle; where, when, and how it suits them best.” As bunq continues its global expansion, it is well-positioned to disrupt the traditional banking landscape, offering tailored products and services to meet the ever-evolving needs of its diverse user base.
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