Revolut, the UK-based global fintech giant, has reportedly abandoned its attempts to acquire an existing US bank to fast-track its entry into the highly regulated American market. According to sources cited by the Financial Times (FT), the company has halted merger negotiations and will now concentrate on applying for an independent, or ‘de novo,’ banking charter.
This strategic pivot suggests Revolut is prioritizing long-term control over speed. While the strategy of acquiring a bank ‘shell’ is often considered the quickest way for fintechs to secure a US banking license—allowing them to offer insured deposits and lending products directly—these deals frequently encounter significant integration issues, high valuations, and protracted regulatory reviews.
By pursuing a de novo license, Revolut will apply to federal regulators, such as the Office of the Comptroller of the Currency (OCC), to build a federally regulated bank from the ground up. Although this process typically takes longer, potentially spanning several years, it grants the company complete authority over its operational structure, technological integration, and risk management framework.
Revolut currently operates in the US through partner banks, which limits the scope of its offerings. Securing a full banking license is viewed as crucial for the company to unlock key revenue streams and fully compete with domestic challenger banks and established institutions in the competitive US consumer finance landscape.
Source: Revolut abandons US merger plans to pursue own de novo banking licence: FT
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