WASHINGTON — U.S. banking regulators have rejected Dutch fintech Bunq’s application for a U.S. banking license, citing concerns about the company’s capital plans, management experience and ability to operate profitably in the competitive U.S. market.
The Office of the Comptroller of the Currency said Bunq’s application did not adequately explain how the Amsterdam-based company would maintain sufficient capital in the United States, the Wall Street Journal reported.
In an Aug. 4 letter, the OCC also raised concerns about Bunq management’s experience with unsecured credit cards, which are expected to be the company’s primary U.S. lending product.
The regulator also said Bunq’s application failed to demonstrate that the company could achieve profitability in the U.S. market.
Bunq said it plans to review the OCC’s feedback and continue pursuing its U.S. expansion.
Just the Latest Obstacle
The setback marks the latest obstacle in Bunq’s effort to enter the U.S. banking market. The company, which focuses heavily on serving so-called digital nomads, has said it plans to initially target metropolitan areas with large expatriate populations.
Bunq previously applied for a U.S. banking license in 2023, seeking authority to accept deposits and make loans. It withdrew that application the following year amid regulatory concerns.
The company made progress on a separate front last year when it received approval from the Financial Industry Regulatory Authority to operate in the United States as a broker-dealer.
Bunq recently said it has surpassed 20 million users. The company is also seeking a banking license in the United Kingdom.
