Dutch challenger Bunq prepares for UK relaunch as it reports first full year of profitability
Dutch digital challenger Bunq has applied for an Electronic Money Institution (EMI) licence in the UK after reporting a net profit of €53.1 million in 2023 – its first full year of profitability.
Bunq applies for UK EMI licence
Bunq broke even for the first time at the end of 2021 and became the first neobank to record a quarterly profit in the EU after a decade of operations in Q4 2022.
The company claims it has become “Europe’s second most profitable neobank” and has now set its sights on re-entering the UK to challenge the likes of Monzo and Revolut as part of its global expansion plans.
Bunq, which currently operates in over 30 European markets, previously offered services in the UK via its EU licence but pulled back from the market and stopped allowing new UK signups in 2020 due to Brexit.
However, CEO and founder Ali Nikham says that the neobank sees the UK as a “bridge between Europe and the rest of the world”, with the company aiming to capitalise on the estimated 2.8 million British digital nomads.
The firm has elected to apply for a UK EMI licence to enable UK customers to open local payment accounts, claiming the move is a “natural step” to bring its products and services to the UK.
In the last quarter of 2023, Bunq’s gross interest income grew by 488%, compared to the same period in 2022, while its user deposits grew from €1.8 billion to almost €7 billion by the end of 2023.
Last year, Bunq also applied for a US banking licence with the Federal Deposit Insurance Corporation (FDIC) in a push to expand its services to all 50 states.
The neobank has also recently launched a self-built GenAI platform for its customers called Finn, claiming that the launch makes Bunq the first AI-powered bank in Europe.
