US regulator has declined Bunq’s application for a national bank charter, blocking the Dutch fintech’s latest attempt to establish a banking presence in the country.
The Office of the Comptroller of the Currency rejected the filing, saying the company had not given enough detail on how it planned to run its business in the US.
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In an emailed statement, bunq said: “The OCC wants to see a plan more specifically built for the US market, with greater demonstrated experience in the products we want to offer, and detail on our financial structure.
“So we’ll do what we always do: listen, adapt, and keep moving forwards.”
An OCC letter said the proposed starting capital for the US bank was expected to come from Niknam’s personal holdings, but it did not clearly establish that the money would be available.
The regulator raised doubts about his familiarity with US banking rules and pointed to concerns over the amount of time he expected to spend outside the country and on other responsibilities.
It said Bunq’s US strategy also remained a concern. It said the company’s assumptions about future credit quality relied on European market forecasts. It also described the firm’s US marketing plan as “unrealistic” in light of competition in the market.
“The proposed directors did not demonstrate an understanding of the differences between the US and European markets and the differences in credit and credit risk,” the OCC said in the letter, despite credit cards being one of the main products planned for the proposed US bank.
Bunq submitted a fresh application in January after first seeking a charter during Joe Biden’s presidency. It withdrew that earlier request at the start of 2024, when few comparable applications were being approved.
The company obtained a broker-dealer licence last year to provide investment products. Niknam said in the statement that the US remains “a market our users care about”.
“Our journey continues with our approved broker-dealer licence, while we work through the OCC’s feedback,” he said.
Nu Holdings secured preliminary approval in January to establish a US national bank, while Revolut is still waiting for a decision after applying in March.
