Revolut Considers Hiring Advisers on US Banking Acquisition
U.K. FinTech Revolut is reportedly getting closer to entering the U.S. banking space.
The company is mulling hiring investment bankers to advise it on a possible acquisition of an American lender to bolster its growth in the U.S., Bloomberg News reported Thursday (Aug. 28), citing sources familiar with the matter.
One source told the news outlet that Revolut is still deciding between an acquisition or applying for its own banking license, and that these deliberations are happening as the company readies the launch of savings products for U.S. consumers in the weeks ahead.
The report follows a similar story from the Financial Times late last month, which said Revolut was considering the acquisition of a U.S.-chartered bank. A spokesperson for Revolut declined to comment when reached by PYMNTS.
As the Bloomberg report notes, Revolut has operated for years in the U.S. by collaborating with other banks. But now, the company and its competitors are seeking a greater share of the banking space amid a more relaxed attitude toward financial regulation in Washington.
Revolut is still in the process of establishing its banking presence in its home country. It took the FinTech more than three years to land a U.K. banking license, and while it eventually secured that permission, it must operate under certain restrictions. Per Bloomberg, Revolut has said it’s in the closing stages of this process.
“Given Revolut’s global scale, this is the largest and most complex mobilization ever undertaken in the UK,” the firm said in a statement last month. “A thorough review is an expected part of the process and getting this right is more important than rushing to meet a specific date.”
Revolut CEO Nik Storonsky has said that the company’s “grow fast” ethos had been ill-advised because a smaller firm would have been able to obtain licenses more easily than one the size of Revolut.
Meanwhile, last month saw a report that the British government and the U.K. central bank had suffered a “falling out” due to delays in allowing a full banking license for Revolut.
Bank of England Gov. Andrew Bailey denied that report, saying the central bank and British treasury have a good relationship.
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