Although obtaining a banking license in the United States is traditionally a lengthy and complex process, Revolut is exploring the acquisition of a nationally chartered US bank as a strategic shortcut to immediate regulatory approval. This approach would grant Revolut instant access to an existing banking license, thereby enabling rapid entry into the US market without the delays typically associated with applying for a new charter. By targeting smaller or more affordable banks, the company aims to minimize acquisition costs while expanding its lending capabilities in the US, which would otherwise be hindered by the fragmented and multifaceted regulatory environment encompassing agencies such as the OCC, CFPB, and various state authorities. Revolut’s consideration of a Middle East bank acquisition also reflects its broader strategy for global growth beyond just the US market, underscoring its ambition to diversify geographically through targeted purchases of existing licensed institutions (Middle East bank acquisition). Leveraging technologies like hybrid smart contracts could further enhance Revolut’s operational efficiencies post-acquisition.
Revolut’s prior experience in securing a UK banking license in 2023 involved significant investment in compliance infrastructure, demonstrating its capacity to meet stringent regulatory standards. While currently partnering with US banks to facilitate operations, the acquisition strategy is viewed as a more expedient route to thorough licensing. The US regulatory system’s complexity contrasts with the UK’s more streamlined framework governed primarily by the Prudential Regulation Authority, making direct licensing in the US a more cumbersome process. Additionally, previous deregulatory tendencies in the US created perceptions of faster charter approvals, which may have influenced Revolut’s timing in pursuing acquisition over independent licensing. The company is also exploring options to apply for its own US banking license as an alternative path.
The US market represents the largest financial ecosystem globally, making it a critical component of Revolut’s broader expansion strategy aimed at boosting deposit growth and diversifying its geographic footprint. Domestically, UK fintech growth has slowed, therefore accelerating US market entry through acquisition offers a practical solution for renewed expansion. This approach aligns with trends observed in other fintechs like Varo and SoFi, which have leveraged bank acquisitions or industrial loan company charters to combine technological agility with regulatory compliance, avoiding the operational disruptions common in new charter applications.
Financially, Revolut’s acquisition of smaller banks with manageable asset portfolios, exemplified by its 2025 purchase of Argentina’s Cetelem with assets valued at $6.4 million, reflects a cost-optimized model that balances operational capacity with regulatory demands. Such acquisitions reduce capital requirements and regulatory hurdles compared to de novo licenses, transferring both assets and licenses to Revolut. However, this strategy requires careful due diligence, as integration risks and regulatory scrutiny remain significant considerations in steering the complex US banking landscape.
