Bunq, a digital bank from the Netherlands, is now available to enter the United States market after obtaining a U.S. broker-dealer license. This now enables the Dutch bank to offer investments to American clients, allowing them to expand their reach to the U.S. capital market. This is a large step in Bunq’s plan to grow internationally and continue to expand its services worldwide.
Bunq has been practicing its product disinhibition since 2012
Bunq has been focusing on disintermediating digital mobility and disinhibition banking in Europe, and in most of its digital services and products, disinhibition has been a strong value.ย Furthermore, Bunq is known for the transparency of its service. Bunq also promotes the values of transparency and disinhibition in product construction.
Bunq is providing a cross-country service that enhances banking services. Transparency of services with regard to mental banking and disinhibition has been a strong value. This has allowed Bunq to become the most promoted in Europe.ย Transparency of services in finance and banking is most known for helping digital nomads to be mobile.
With the rise of neobanks like Bunq, competition and low interest rates are having their effects on modern banks. With successfully modernized, customized financial services and digital technologies, Bunq and others are able to provide services that are cheaper and more accessible to consumers.
Ali Niknam – an emblematic player in his domain
More than wanting to satisfy American consumers, Niknam champions a cause:
“This license is a key step in our mission to make life easy for digital nomads and global citizens.”
Bunq intends to provide clients with seamless access to American investment services. Bunq’s soft, encouraging approach most likely also underwrites his confidence toward getting his American product services in place, despite not being in the investment ecosystem for Bunq’s services.
He also states:
“Our users roam the world – they live, work, and travel across borders. For many, the US is an important part of their lives.”
Digital banks and fintech companies are finding it necessary to expand their revenue sources
Modern banks are impacted by competition and low interest rates. Neobanks like Bunq are using the advantages of technology to tailor and offer modernized and cheaper financial services that are highly cost-effective for consumers.
Bunq’s expansion to the U.S. market is part of the greater international expansion strategy of European fintech companies. While very competitive, the U.S. market is very profitable, as there are numerous retail investors and strong financial services that can be easily accessed. Most international entrants are stopped by regulatory barriers, but Bunq submitted its paperwork to FINRA, so they are very close to the competitive U.S. market. There are some regulations, but they have the license, so Bunq does not need to worry
There are many retail investors in the U.S., making the U.S. market very competitive yet profitable.
Bunq will start the rollout with a limited beta version
Bunq has told the public that its U.S. investment services are a work in progress, and they expect to begin the process with a limited beta rollout.
Many in the industry expect Bunq to partner with American financial institutions to achieve operational effectiveness. As Bunq nears the finish line to break into America, the acquisition of a broker-dealer license is much more than regulatory approval for the bank.
It is the groundwork of a strategic pivot to become a globally integrated full-service financial platform. More for U.S. users, the license opens up more access to advanced investment instruments. More for the industry, it is another example of the U.S. regulatory framework permitting the digital age to bleed banking into investing.