Bunq: Revolut rival eyeing up UK banking licence bid

Europe’s second largest digital bank is gearing up for a bid for a UK banking licence, City AM can reveal, as the firm puts its hat in the ring in the fight to claw market share from fintech leader Revolut. 

Bunq – which reached 20 million users in just a decade – is understood to be eyeing deeper penetration of the UK market with a full-fat permit, in a move that could end a year-long drought in applications for the licence in Britain. 

In 2024, the $2bn Dutch fintech made a play for an electronic money institution (EMI) permit, that allows non-bank fintech companies to issue money, hold customer funds, and process digital payments.

Prior to Brexit, it had operated in the UK under a European banking licence and stopped offering new accounts at the end of 2020 due to the red-tape associated with the country leaving the European Union. It began to plot a return in 2023.

Sources familiar with the matter said Bunq is now mulling an official UK licence that would allow it to bring its fully-fledged banking services to the market. They added that plans remained subject to change with no formal application having yet been made. 

UK banking licence applications fell to zero in 2025

It would come after the number of applicants for UK banking licences plummeted to zero in 2025, raising questions over the government and regulators’ capacity to foster competition and attract overseas investment.

Payments fintech Wise was reported to be mulling a licence bid last year in a bid to widen its customer offering, according to reports from The Times. 

Just five foreign banks have been authorised by regulators in the UK since 2020, according to a Freedom of Information request by financial regulation consultancy Pathlight.

Bunq founder and top boss Ali Niknam said in 2024 that a UK licence was not an immediate priority with “a lot of the regulations constantly changing”.

The firm recorded its second consecutive year of profit at €85.3m (£63m) for the 2024 financial year, marking 64 per cent growth. Interest income serves as the main driver after near doubling to €245.3m

Earlier this year it became the latest fintech to file for a US banking licence as Europe’s digital banking talent look to crack the market.

Rival Revolut, which secured its own UK banking licence in March after a years-long wait, has also applied for a licence to operate in the US.

A spokesperson for Bunq said: “We cannot share details of the regulatory process. The UK is of course important to us, as it is a priority market for our users, which is why we operated there under our European banking licence before the UK left the EU.”