Revolut Shifts Strategy, Seeks US Banking Charter Instead of Acquisition

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Financial technology firm Revolut is changing its approach to the US market, opting to apply for a new national banking charter rather than acquiring an existing institution. This pivot, reported by the Financial Times on Friday, marks a significant shift in the company’s expansion plans.

The London-based company had been actively pursuing the purchase of a nationally chartered US bank as recently as last August. That strategy was seen as a faster route to establishing a full lending business across all fifty states.

According to the report, Revolut abandoned the acquisition plan after determining it presented considerable challenges. These included potential requirements to operate physical branch networks of a community bank and a separate, lengthy regulatory approval process for the change in ownership.

Revolut is now reportedly banking on a streamlined approval process from the Office of the Comptroller of the Currency. People familiar with the matter cited an overhaul at the agency over the past year. The OCC has previously granted conditional licenses to several crypto-native companies, including Paxos and Ripple.