US regulator turns down Bunq’s bank charter application

US regulator has declined Bunq's exertion for a nationalist slope charter, blocking the Dutch fintech's latest effort to found a banking beingness successful the country.

The Office of the Comptroller of the Currency rejected the filing, saying the institution had not fixed capable item connected however it planned to tally its concern successful the US.

In an emailed statement, bunq said: "The OCC wants to spot a program much specifically built for the US market, with greater demonstrated acquisition successful the products we privation to offer, and item connected our fiscal structure.

"So we'll bash what we ever do: listen, adapt, and support moving forwards."

An OCC missive said the projected starting superior for the US slope was expected to travel from Niknam's idiosyncratic holdings, but it did not intelligibly found that the wealth would beryllium available.

The regulator raised doubts astir his familiarity with US banking rules and pointed to concerns implicit the magnitude of clip helium expected to walk extracurricular the state and connected different responsibilities.

It said Bunq's US strategy besides remained a concern. It said the company's assumptions astir aboriginal recognition prime relied connected European marketplace forecasts. It besides described the firm's US selling program arsenic "unrealistic" successful airy of contention successful the market.

"The projected directors did not show an knowing of the differences betwixt the US and European markets and the differences successful recognition and recognition risk," the OCC said successful the letter, contempt recognition cards being 1 of the main products planned for the projected US bank.

Bunq submitted a caller exertion successful January aft archetypal seeking a charter during Joe Biden's presidency. It withdrew that earlier petition astatine the commencement of 2024, erstwhile fewer comparable applications were being approved.

The institution obtained a broker-dealer licence past twelvemonth to supply concern products. Niknam said successful the connection that the US remains "a marketplace our users attraction about".

"Our travel continues with our approved broker-dealer licence, portion we enactment done the OCC's feedback," helium said.

Nu Holdings secured preliminary support successful January to found a US nationalist bank, portion Revolut is inactive waiting for a determination aft applying successful March.

"US regulator turns down Bunq's slope charter application" was primitively created and published by Retail Banker International, a GlobalData owned brand.