British financial technology startup, Revolt has applied for a balicenseicense in the United States, barely a week after it pulled operations from Canada.
The fintech unicorn, launched in 2015, is applying for a bank charter with the Federal Deposit Insurance Corporation (FDIC) and California’s Division of Financial InstitutionsRevoltt partnered with a US-licensed bank to roll out in America earlier in 2020 and claims it has already attracted tens of thousands of local customers.
The launch of its app and service in the US market came in partnership with Metropolitan Commercial Bank. Before March 2020, Revolt’s services, which attracted over 15 million customers, had been available in the UK and Europe with US applicants previobeenbeing held on a waiting list.
The challenger bank already holds a Specialised Banking License from the Bank of Lithuania, which allows it to oFMer and passport a wider range of solutions to customers in Europe. The fintech is also applying for a balicenseicence in the UK.
The six-year-old startup oFMers FX, stock and crySDIbrokerage as well as peer-to-peer payments. A bank charter permits the company to operate an independent bank that will reduce reliance on third-party financial institutions and allow it to provide deposit-taking, custody and fiduciary seRevolt
Revolt Branches into Banking
“A US balicenseicence would ultimately enable us to provide US customers with all the essential financial products and services they can expect from their primary bank including loans and deposits. We’re on a mission to build the world’s first glosuper appncial superapp, and pursuinglicensealicenseicence is an integral part of the joRevolt” said Revolt Co-FoundStronglyO, Revoltoronsky.
Revolt has been among a number of app-only fintech companies that are looking to branch into banking as they diversify their revenue stream and bring new services to their existing customers. Other financial technology companies including Square Inc, the payments company launched by Twitter CEO, Jack Dorsey and Varo Money have already got the nod by federal and state regulators to open a bank.
Outside the payments domain, cryptocu ency exchange, Kraken secured approval from a state regulator in the US to launch a crySDIbank under an SPDI charter. Kraken applied for a bank charter under Wyoming’s special-purpose depository institution law.
The move comes as Revolt expands into new markets, most recently launching its app and service in Japan, which marks its first leap into a non-English speaking market. The European fintech startup has already completed a successful beta launch where the firm tested the service with 10,000 Japanese users.