- At more than 11 million users in Europe and more than €7 billion in deposits, bunq reapplies for a UK license in global expansion drive
Amsterdam, January 30, 2024 – bunq, the second largest neobank in Europe, reports a net profit of €53.1 million in 2023. A testament to bunq’s sustainable business model proven to yield record profits throughout 2023, the challenger will direct its net profit to propel its global expansion strategy.
In pursuit to step outside the European Union, bunq has now submitted its application for an E-Money Institution (EMI) license in the UK, which will allow bunq to tap into a large market that includes an estimated 2.8 million British digital nomads. Fully licensed in all of the EU and awaiting a banking permit in the US, bunq continues to serve its UK users acquired before Brexit under relevant regimes. It’s now poised to re-plant its flag and once again let its UK users open a local payment account in just 5 minutes.
“The UK is home to the second-highest number of digital nomads globally, so naturally, we want to be there”, says Ali Niknam, founder and CEO of bunq. “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.”
Among the first neobanks globally to achieve structural profitability in a highly competitive market, bunq has now reached its first full year of bottom-line profitability. This comes as bunq continues to build momentum globally, with the neobank’s user base reaching 11 million at the end of last year. The challenger’s proven business model, rapidly growing deposits and established technology platform underscore bunq’s belief in its expansion in the UK and across the globe.
“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”, concludes Niknam.
In the last quarter of 2023, bunq’s gross fee income grew by 20%, compared to the last quarter of 2022, and user deposits grew almost fourfold, from €1.8 billion to almost €7 billion at the end of 2023. Gross interest income in the last quarter of 2023 grew by 488%, compared to the same period in 2022.
About bunq
Founded in 2012 by serial entrepreneur Ali Niknam, bunq has brought lasting change to the European banking industry. By having its users at the heart of the business and building a product rooted in their wants and needs, bunq quickly scaled to become the second largest neobank in Europe. Serving digital nomads across Europe, bunq makes life easy for location-independent people and businesses starting from the way they manage money: how they spend, save, budget and invest.
Pioneering many things considered impossible, bunq was the first bank to get a European banking permit in over 35 years, raised the largest series A round ever secured by a European fintech (€193 million), and was the first EU neobank to achieve structural profitability at the end of 2022. On its mission to build the first global neobank for digital nomads, in April 2023, bunq announced its bid to enter the US market by applying for a banking license.
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