Dutch-based digital financial institution bunq has secured $31 million (€29 million) in new funding.
The funding announcement got here after the corporate reported a revenue of $57 million (€53 million) for 2023.
bunq added that it’ll re-submit its software for a banking license within the U.S. as a part of its growth plans.
European digital financial institution bunq has raised $31 million (€29 million) in new funding. The capital infusion from the corporate’s shareholders got here within the wake of bunq’s announcement that it has achieved a internet revenue of $57 million (€53 million) in 2023. The funds will speed up bunq’s improvement technique, in addition to be certain that the corporate satisfies Dutch Central Financial institution capital necessities.
The digital financial institution has credited curiosity revenue for its profitability, not simply in 2023, however in 2022, as effectively. The corporate reported that curiosity revenue tripled in 2023, rising from greater than €41 million to greater than €127 million. Along with its revenue milestone in 2023, bunq additionally introduced that buyer belongings climbed from $1.9 billion (€1.8 billion) to $7.4 billion (€6.9 billion).
Bunq plans to leverage the brand new capital to develop extra within the U.Okay., in addition to transfer into the U.S. market. To this finish, the establishment famous that it plans to resubmit its software for a banking license with the U.S. Workplace of the Comptroller of the Foreign money (OCC). Bunq withdrew its software earlier this yr citing points between Dutch regulators, the OCC, and the Federal Deposit Insurance coverage Company (FDIC). In a press release, bunq famous that it was “totally dedicated to resolving all of the variations between De Nederlandsche Financial institution’s, and the FDIC’s, and OCC’s supervisory expectations.”
That stated, it has not been simple for monetary establishments outdoors the U.S. to safe approval to function inside the U.S. For instance, Monzo, a U.Okay.-based challenger financial institution, tried and walked away from the method in 2021 when approval appeared unlikely. Sadly, new U.S.-based corporations in search of financial institution charters have solely fared somewhat higher. For each Savi Monetary, there’s a New Canaan Financial institution.
Bunq raised $111 million final July, boosting the agency’s valuation to $1.8 billion. The corporate ended 2023 with the launch of its generative AI monetary copilot Finn. Basically, Finn will assist substitute the search operate on the bunq app. However the know-how will even help customers as they plan their funds, construct budgets, assessment transactions, and extra.
“Finn will wow you,” bunq founder and CEO Ali Niknam stated when the product was launched. “Years of AI innovation, coupled with a laser concentrate on our customers, allowed us to utterly remodel banking as you recognize it. Seeing Generative AI make life a lot simpler for our customers is extremely thrilling.”
Photograph by Chait Goli
