Revolut Drops U.S. Bank Merger, Seeks De Novo Banking License
According to the Financial Times, Revolut has scrapped plans to acquire an existing U.S. bank and will apply for a de novo banking charter, arguing that the licensing process under the current administration is likely to be quicker and would remove the need to operate physical branches. The move reflects the company’s digital-first strategy and a desire to sidestep the operational complexity of integrating an incumbent institution. If granted, a de novo license would allow Revolut to operate as a U.S. bank, accept deposits and expand lending and payment services directly, which could accelerate its U.S. product rollout. The timeline and outcome remain uncertain: de novo approvals can be stringent and politically sensitive, so regulators’ reactions will determine how quickly Revolut can scale and how this shift affects competition among neobanks and incumbents.