Dutch neobank startup BUNQ is hiring spree and 65% profit surges as they plan to expand. Double the digital nomads

Six months ago, Dutch neobank startup Bunq hired employment, as other fintechs had cut their staff. Now, that bold move seems rewarding. On Tuesday, BUNQ announced it had applied for a broker-dealer registration in the US and plans to expand beyond Europe.

The move aims to serve digital nomads, a group of remote workers who live across the border, and to approach a full US banking licence.

CEO Ali Niknam said the broker-dealer application was a “first step” in that direction, but did not give a timeline when BUNQ expects to secure full bank approval in the US, but the company appears to be confident in its plan.

By getting a broker-dealer license, BUNQ is able to provide most of its services, except for savings accounts, but it is a major victory for its international user base. “We can provide many services to users who have an international footprint, the user demographic we are aiming for,” Niknam told CNBC.

Founded in 2012, BUNQ has established itself as a counter for traditional banking operations and branded it as a “digital nomadic” bank. The approach seems to be working. Amsterdam-based FinTech now has around 9 million users, from the previous 5.4 million. Deposits rose to 4.5 billion euros compared to just 1 billion euros two years ago.

The company has not stopped in the US. In addition, we are applying for an electronic money license in the UK. BUNQ originally applied for the US Bank Charter in April 2023, but earlier this year cited the application, citing friction between Dutch regulators and US agencies. The plan is to resubmit the full application later this year.

As BUNQ pushes it into new markets, it grows its team across several features including sales, products, PR, marketing, development, and user support. Many of these roles offer remote flexibility and tailor the company’s pitch and digital nomads. Still, BUNQ plans to maintain physical offices in cities such as Amsterdam, Istanbul, New York, London and Madrid.

65% profit surge

Beyond expansion, there is also momentum in the financial aspects. BUNQ reported a 65% jump in annual profits, reaching 85.3 million euros ($97.2 million). That growth stemmed mainly from a 55% increase in net interest income and was raised by higher interest rates on customer deposits held at the central bank. Fee revenues also increased by 35%.

Niknam rated the results more than just a favorable interest rate environment. “We were very lean, mean and we set up all our systems from scratch. We were able to not only make profits, but also provide very good interest rates in the European market in general, and in the Netherlands in particular,” he told CNBC.

With strong numbers and a growing user base, it appears that BUNQ is challenging incumbents of fintech like Monzo and N26, and is giving their own name in the US market along the way.