Dutch neobank unicorn company Bunq will re-enter the “hugely important” UK market following its first full year of profitability.
The Amsterdam-based fintech has applied for an e-money institution (EMI) license that will allow it to provide financial services in the UK.
“As a bridge between Europe and the rest of the world, the UK is at the forefront of European fintech and a hugely important market for Bunq. As a true tech company, it only makes sense for us to pursue this market,” said Ali Niknam, founder and CEO of Bunq.
Bunq previously operated in the UK due to its European Union license but left the market after Brexit.
Now looking to expand beyond the EU – and bolstered by a 2023 pre-tax profit of €53.1m (£45.3m) – Bunq is planning to offer customers in the UK payments accounts.
“The UK is home to the second-highest number of digital nomads globally, so naturally, we want to be there”, Niknam added.
“We want to truly make their life easy, that’s why we’re excited to reintroduce Bunq to the Brits and enable them to bank like a local all across Europe.”
The move will see Bunq compete with the likes of Monzo, Revolut and Starling in the highly competitive British challenger bank market.
Bunq is among the largest neobanks in Europe, with a user base of around 11 million. It achieved unicorn status – a private company valued at $1bn or more – in 2021.
With an EMI license, Bunq will be able to issue payment cards and provide digital payment services, however, it will not be able to operate as a fully licenced bank in the UK without separate regulatory approval.