Bunq plans strategic U.S. entry with investment products first, full banking next

Bunq has filed for a broker-dealer license with FINRA and SEC, marking the completion of the first phase of its two-step expansion strategy in the United States.

Full suite: The authorization will enable the Dutch neobank to offer American users investment products such as stocks, ETFs, and mutual funds, along with cash management features including Mastercard-powered debit cards and FDIC-insured accounts. CNBC says the move does not amount to a full banking license, which Bunq intends to seek later this year.

Reinvesting in growth: Bunq’s push into the U.S. follows its second consecutive year of profitability, reporting €85.3 million (over $90 million USD) in net profit for 2024, a 65% jump from the previous year. The firm plans to reinvest these earnings to fuel its international expansion. According to wide reporting, CEO Ali Niknam has emphasized the importance of serving "location-independent" users, calling the U.S. market both a growth opportunity and a proving ground for Bunq’s global ambitions.

Regulatory friction remains: Bunq is Europe’s second-largest neobank, serving 17 million users under an EU banking license, though it previously withdrew from the UK post-Brexit and now seeks an EMI license there. After pulling its U.S. federal bank charter application last year due to regulatory friction, the firm adopted a broker-dealer route as an alternative entry point given America’s dense market of legacy banks and fintechs. While Bunq’s profitability has benefited from elevated interest rates, looming rate cuts may put pressure on its margins.

Tough market: Bunq faces a saturated U.S. market with incumbents such as JPMorgan Chase and Bank of America, as well as fintech competitors like Chime. The broker-dealer approach limits Bunq to offering investment accounts and debit services until a full license is obtained, creating uncertainty around savings account availability. Still, regulatory complexities persist, as the company navigates past misalignments and interest rate fluctuations that may affect net interest income.