European fintech giant Revolut plans to start operations in California. According to CNBC, the company will soon apply to the Division of Financial Institutions of California and the Federal Reserve Bank of San Francisco to receive a bank charter.
The London-based fintech company will use interstate agreements to operate throughout the United States if it succeeds in receiving a California bank charter. However, some industry observers have raised the question why the fintech didn't apply through the Office of the Comptroller of the Currency, and chose a government bank charter.
The financial regulatory regime in the United States is extensive and fragmented. Fintech startups take several different approaches to enter the market. The most successful ones, such as Chime and Current, simply entered into partnerships with existing banks. As a reminder, Kraken Financial received a banking license in Wyoming last month.
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