The OCC denied Bunq's US banking license application Friday, citing an unrealistic marketing plan and concerns about the founder's familiarity with US banking laws.
NEWS CORP currently carries an Alpha Score of n/a, giving AlphaScala's model a neutral read on the setup.
The Office of the Comptroller of the Currency denied Bunq's application for a US banking license on Friday, telling the Dutch FinTech its American expansion plan lacked detail, Bloomberg News reported.
Bunq founder and CEO Ali Niknam said the OCC wants to see a plan more specifically built for the US market, with greater demonstrated experience in the products the company wants to offer, and detail on its financial structure. "So we'll do what we always do: listen, adapt, and keep moving forwards," he said in an emailed statement.
The regulator's denial letter cited several concerns. The initial capital for the proposed American bank would come from Niknam's personal holdings, though the availability of those funds was not clear. The OCC also questioned Niknam's familiarity with US banking laws and his plans to spend considerable time outside the US and in other roles.
Bunq's projections for future credit quality relied on forecasts for the European market, the OCC said. Its US marketing plan was "unrealistic" given the competitive landscape. The proposed directors failed to show an understanding of the differences between US and European credit markets, even though credit cards would be one of the bank's main products, the letter said.
Bunq filed for a bank charter in January. The company had initially sought to open a US bank under former President Joe Biden, pulling that application at the start of 2024 when few such requests were being approved. When it refiled this year, Bunq said it was targeting "digital nomads" who live and work between the US and Europe. Its US broker-dealer license was approved last October, letting users invest in US stocks.
The denial lands as several FinTech companies pursue charters to launch US banking operations. A national charter offers advantages beyond regulatory status, including a single federal supervisory framework, expanded lending and deposit capabilities, reduced dependence on third-party banking partners and greater authority over product development, PYMNTS reported last month.
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