Revolut Plans Bank Acquisitions In USA and Middle East

Revolut is said to be looking at taking over Middle Eastern and US banks as part of a move to fast-track global expansion and further solidify its position as one of the world’s most valuable digital banking platforms.

Revolut is in advanced negotiations to raise new funding at a valuation of around $65 billion, with money going to grow abroad, according to a Bloomberg report. Among the things high on the agenda: breaking into the U.S. banking system and establishing a presence in the Middle East through strategic acquisitions.

In the U.S., Revolut is considering the purchase of a nationally chartered bank, which would allow it to bypass the lengthy process of filing an application for a banking license from scratch. 

While the company has considered filing on its own, buying a bank would speed up its expansion and enable Revolut to offer lending and deposit products in the world’s largest financial market.

The expansion into the U.S. follows hope that the deregulatory approach of the Trump administration will relieve licensing barriers. Revolut already has millions of U.S. customers with restricted financial services, but a full banking license would significantly boost its powers.

At the same time, Revolut is looking to make a similar play in the Middle East, where it already has operations in Saudi Arabia and the UAE. Though present in the market, Revolut does not yet have a banking license, and purchasing a local player would enable it to expand quicker without the need for regulatory go-ahead. 

Revolut has also brought in new management for Morocco as it targets further expansion into North Africa.

Abu Dhabi’s state fund Mubadala is said to be considering a $100 million follow-on investment in Revolut. This follows its previous investment in a $400 million private sale of shares when Revolut was valued at $45 billion. Shares from investors like Balderton Capital, which is seeking to exit.

Mubadala’s decision is a vote of confidence in Revolut’s international expansion and fintech dominance, with the company now having more than 60 million customers.

These moves follow Revolut’s purchase of BNP Paribas’s Argentine bank Cetelem last week and form part of a broader move to expand its banking presence in high-growth economies.

Revolut’s two-pronged growth can turn the company into a global banking giant providing classic services, crypto exchange, and fintech products from the same roof.

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