Dutch digital bank weighs full licence bid in Britain after years of restricted market access
Bunq, Europe's second-largest digital bank, is considering applying for a full UK banking licence, in a move that could end a year-long drought in such applications.
The Amsterdam-headquartered fintech, which has accumulated 20 million users in roughly a decade, previously operated in the UK under a European banking licence before Brexit. It ceased offering new accounts at the end of 2020 amid the regulatory complexities of the UK's departure from the EU, and began planning a return to the market in 2023.
In 2024, Bunq applied for a UK electronic money institution (EMI) permit, which allows non-bank firms to issue money, hold customer funds and process digital payments. Sources familiar with the matter told City AM the company is now considering a full banking licence — a step up that would allow it to offer a broader range of services. Those sources noted that no formal application had yet been submitted and that plans remained subject to change.
A full licence application would come against a backdrop of declining interest from overseas banks in entering the UK market. According to a Freedom of Information request by financial regulation consultancy Pathlight, only five foreign banks have been authorised in the UK since 2020. No applications for banking licences were made in 2025 — a fact that has prompted scrutiny of regulators' and the government's ability to attract investment and foster competition.
Bunq recorded its second consecutive annual profit in 2024, with net income of €85.3 million (£73.77 million) — a 64% increase year on year. Interest income was the primary driver, nearly doubling to €245.3 million (£212.16 million).
Earlier this year, the company filed for a US banking licence, joining a number of European fintechs seeking entry to the American market. Rival Revolut, which secured its UK banking licence in March 2025 following a protracted wait, has also applied for a US banking licence.
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