Six months after unveiling plans to reenter the UK market, Amsterdam-based challenger financial institution bunq insists it’s ready ‘patiently’ for its E-Cash Establishment (EMI) licence. Nevertheless, the financial institution admits it might be subsequent yr earlier than it secures the mandatory regulatory approval.
bunq initially pulled out of the UK market in 2020 because of the uncertainties and problems attributable to Brexit. The withdrawal was a strategic choice, it says, however the UK has all the time remained a “massively vital market” for the financial institution, which highlighted the UK’s place on the forefront of European fintech.
“Earlier than Brexit, we deliberate to open our second workplace in London,” says Bianca Zwart, bunq’s chief of employees.
“We’ve all the time had our sights set on the UK. We see enormous potential right here – It’s on the forefront of European fintech and a bridge between Europe and the remainder of the world.
“With the second-highest variety of digital nomads on the planet, the UK is a pure match for us. These digital nomads need to reside a global life free from borders, and we are able to’t wait to be again so we are able to make their life straightforward wherever they go.”
EMI software
The Monetary Conduct Authority (FCA) points Digital Cash Establishment (EMI) licences within the UK. Whereas EMIs are much like banks, they’re restricted to offering fee companies and holding consumer funds with out partaking in conventional banking actions like lending.
In January 2024, bunq revealed its software for an EMI licence slightly than a full banking licence, a strategic alternative that permits the financial institution to supply important companies tailor-made to the wants of its UK customers.
“Our alternative fell on the EMI licence because it permits us to supply all of the important companies that may make our UK customers’ lives straightforward,” Zwart defined.
bunq’s return to the UK coincides with profitability milestones amongst its opponents. Monzo just lately introduced its 2024 monetary outcomes, revealing its first full-year pre-tax revenue, whereas UK digital banking group Starling additionally just lately reported a 54.7 per cent enhance in pre-tax earnings to £301.1million.
But Zwart means that bunq’s technique stays centered on its user-centric strategy.
“We’ve all the time run our personal race and constructed a financial institution rooted within the desires and wishes of our customers. We observe our customers’ lead, and our growth is fully pushed by the place they go. We’ve reached structural profitability and we use these earnings to gasoline our international progress. Our strategy for the UK is identical as for some other market: making a product customers love. When customers are glad, business success naturally follows.”
“We all the time selected to stay unbiased, and that’s the trail we’re sticking to.”
Development technique
Increasing into new markets includes a balanced strategy of native management guided by a world technique, explains Zwart.
“At any time when we enter a market, we observe a two step strategy. We first deal with getting a bunch of enthusiastic customers and really tailor our product to their wants. Following this, we go all-in. Whereas our central crew in Amsterdam drives our international progress technique, our native crew in London ensures a seamless match tailor-made to native wants.”
Countdown to launch
The precise timeline for bunq’s UK launch is dependent upon the EMI licence approval however Zwart stays optimistic, stating: “As quickly because the licence is granted, we’ll relaunch within the UK and onboard new British customers. We are able to’t wait!”
She hopes that the licence might be granted “someplace by the tip of this yr, perhaps early subsequent yr” however insists the licensing course of, although detailed, has been progressing easily.
“As anyplace on the planet, conversations with the regulator are strictly confidential. Moreover, regulators simply don’t rush issues (within the Netherlands, we have been the primary in 35 years to get a full European banking licence!).
“It all the time takes a whole lot of time, persistence, and paperwork. Up to now, the regulator has been very responsive and a productive dialogue is ongoing. We simply have to proceed to work arduous on our software and permit the regulator to do their job.
“We can not wait to be again, keep tuned!”
