Dutch digital bank bunq is advancing its US expansion plans by filing for a broker-dealer license, marking a strategic shift in its approach to cracking the American market. This move comes as the neobank reports impressive financial results, with net profits surging 65% to €85.3 million in 2024 compared to €51.6 million the previous year. The Amsterdam-based fintech, which boasts 17 million users and claims to be Europe’s second-largest neobank, had previously applied for a US banking license in 2023 but withdrew the application. Now taking a more measured two-step strategy, bunq will first establish itself through the broker-dealer license before reapplying for a full banking license later this year.
The broker-dealer authorization will enable bunq to offer American customers investment features and cash management services through FDIC-insured accounts, along with Mastercard debit products, while initially excluding savings accounts due to regulatory limitations. This phased approach allows the company to gather valuable operational experience and user feedback before committing to full-scale banking operations in the competitive US market. Founder and CEO Ali Niknam emphasized the bank’s global ambitions, stating that their internationally mobile users demand financial services that transcend borders. The expansion strategy reflects bunq’s confidence following its strong financial performance and established position in Europe, where it holds a banking license and has applied for UK electronic money institution status.
Bunq’s US entry faces significant challenges in a market dominated by established digital banks like Chime and Current, but the company brings distinct advantages including its European base, AI-powered features, and sustainability-focused brand identity. The decision to pursue a broker-dealer license first demonstrates a pragmatic approach to US regulatory hurdles that have thwarted other European neobanks. Industry observers note this cautious expansion mirrors bunq’s successful subscription-based model in Europe, where monthly fees ranging from €3 to €18 have contributed to its profitability. The coming months will prove crucial as bunq navigates the US regulatory landscape while maintaining its growth trajectory in European markets.