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Revolut Secures Conditional US Banking Licence, Strengthening IPO Prospects

Revolut has received conditional approval for a US banking licence, a move described as a "consequential" step towards a potential public debut. This follows a series of international licence approvals for the digital bank.

  • Revolut gained conditional approval for a US national bank charter from the Office of the Comptroller of the Currency (OCC) last week.
  • The approval is seen as strengthening Revolut's pre-IPO position and follows recent licence authorisations in Australia and from the European Central Bank.
  • The firm aims to reach 100m customers by mid-2027.

Revolut has been granted conditional approval for a US banking licence, a development analysts have called a "consequential" step for the fintech company as it moves towards a public debut. The digital bank received approval from the Office of the Comptroller of the Currency (OCC) for its American national bank charter last week, which removes a significant obstacle to launching operations across the US.

This entry into the US banking market follows previous unsuccessful attempts by other digital banks, including Wise and Bunq, to secure similar approvals, and Monzo's decision to withdraw its US operations. Revolut, however, has maintained its global ambitions, targeting 100m customers by mid-2027.

Tomasz Noetzel, an analyst at Bloomberg Intelligence, stated that direct deposit taking, lending, and card issuance in the US will "remove the sponsor-bank drag on unit economics and materially strengthens the pre-IPO story." Denis McGoldrick, head of financials research at Goodbody, added that the approval is a "notable step forward in its international ambitions" and "reinforces growing confidence in the group’s long-term growth prospects."

The US licence win follows Revolut securing its full UK banking permit in March, after a four-year wait, and subsequent authorisations in Australia in July and a new permit from the European Central Bank via its French operations. These recent successes are expected to solidify the firm's valuation, which is currently undergoing a secondary share sale that could reach $115bn.

Despite these regulatory achievements, McGoldrick noted that the "real challenge" for Revolut will be building trust with customers to manage their salaries, savings, mortgages, and broader financial lives.

Why this matters: The conditional US banking licence is a significant regulatory win for Revolut, potentially boosting its valuation and strengthening its position ahead of a possible initial public offering.

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