Neobanks that built their reputations in Europe are now accelerating their expansion across borders, with the United States squarely in their sights.
The U.S. offers fertile ground for expansion: Gen Z, the first generation of true digital natives, is beginning to accumulate income, savings and purchasing power — and their expectations for banking services align neatly with the digital-first DNA of those providers.
Revolut Puts Down US Roots
Revolut recently deepened its U.S. presence with the launch of a high-yield savings account in late September, explicitly pitched as part of its broader American growth strategy. The company has also confirmed that it is exploring pathways to secure a U.S. banking license, either by applying directly or by acquiring an existing bank. By building U.S. savings products and examining structural ways to operate as a bank, Revolut is signaling that it views American consumers as central to its next growth chapter.
Monzo Maintains a US Foothold
U.K. neobank Monzo has also laid groundwork in the U.S., albeit more gradually. It continues to maintain live product offerings for American customers, including joint accounts, debit card services and its hallmark “Savings Jars” feature, as noted on its U.S. site. These tools cater to Gen Z’s preference for apps that provide financial control in real time, from micro-saving to splitting expenses.
The bank has also raised capital in past rounds with explicit reference to U.S. expansion and, in preparation for scaling operations, hired a U.S.-based CEO with deep FinTech experience.
Bunq Pursues a US License
Amsterdam-based bunq offers another example of how European neobanks are eyeing the U.S. market. Earlier this year, it completed the first phase of a U.S. banking license filing, a step in a broader bid to serve global customers who move between regions.
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Gen Z as a Growth Catalyst
The common denominator across these expansion strategies is the focus on Generation Z. PYMNTS Intelligence data highlights just how attractive this demographic is to digital-first challengers. Nearly 72% of Gen Z consumers report using a digital wallet at least once a week, compared with just 38% of Gen X. Another 62% of Gen Z say they would consider making a neobank their primary bank account provider, a striking level of openness that outpaces all other generations. And nearly 7 in 10 Gen Z respondents told PYMNTS they prefer to manage their financial lives entirely online, underscoring the digital-first mindset that plays to neobanks’ strengths.
Risks and Challenges Ahead
The path is not without hurdles. Regulatory complexity in the U.S. remains one of the biggest obstacles, particularly for foreign firms that must navigate both federal and state-level banking oversight. Acquiring a bank may speed market entry, but it also comes with significant capital requirements and compliance responsibilities.
Customer acquisition is another challenge. Gen Z is willing to experiment with new apps, but keeping them engaged long enough to transition from secondary accounts to primary banking relationships will be costly. Meanwhile, incumbent U.S. banks are not standing still; many have invested heavily in their own digital platforms and mobile-first experiences.
For neobanks, the opportunity is substantial — but so are the risks. Their ability to adapt their European playbooks to the regulatory, competitive, and cultural realities of the U.S. market will determine whether these cross-border expansions deliver on their promise.
