OCC Says No to Bunq US Banking License Bid

American banking regulators have reportedly turned down Dutch FinTech Bunq’s request for a banking license.

The Office of the Comptroller of the Currency (OCC) denied the request Friday (Aug. 7), telling Bunq the company needed to offer more insight into its American expansion plans, Bloomberg News reported .

“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,” Bunq Founder and CEO Ali Niknam told Bloomberg in an emailed statement. “So we’ll do what we always do: listen, adapt, and keep moving forwards.”

While the initial capital injection for the proposed American bank would come from Niknam’s personal holdings, the availability of the funds was not clear, the OCC said in a letter cited by Bloomberg. The regulator also expressed concerns about Niknam’s familiarity with U.S. banking laws and his plans to spend a great deal of time outside the U.S. and in other roles.

In addition, the OCC said Bunq’s view of future credit quality was based on forecasts for the European market, and that its marketing plan for the U.S. was “unrealistic” considering the competition Bunq would face.

“The proposed directors did not demonstrate an understanding of the differences between the U.S. and European markets and the differences in credit and credit risk,” even though credit cards would be one of the U.S. bank’s chief products, the letter said.

Bunq applied for a bank charter in January. The company had initially sought permission to open a U.S. bank under former President Joe Biden, the Bloomberg report said, but pulled that application at the beginning of 2024, at a time few such requests were being approved.

When announcing its filing earlier this year, Bunq said it was targeting “digital nomads” who live and work between the U.S. and Europe. The company’s U.S. broker-dealer license was approved last October, letting users invest in U.S. stocks.

The OCC’s denial comes at a moment when several FinTech companies are seeking charters to launch banking operations in the U.S., as PYMNTS wrote last month.

“A national charter offers advantages that extend beyond regulatory status,” that report said. “Depending on an institution’s business model and approvals, it can provide a single federal supervisory framework, expand lending and deposit capabilities, reduce dependence on third-party banking partners and give institutions greater authority over product development and customer relationships.”