The Dutch neobank has revealed enormous growth in profits. It’s not just that they’re increasing their expansion efforts in the U.S. either. The announcement came eight months after the company boasted a mind-boggling 65% year-over-year spike in profit, up to 85.3 million euros ($97.2 million). This good fortune arises from a stunning 55% increase in net interest income. Further, net fee income has increased a whopping 35%.
CEO of Bunq, Ali Niknam, placed his bank’s profitability on the current high interest rate environment. In a recent statement to CNBC, he touted the advantages of being “lean and mean.” He continued, noting how they developed their systems from day one. This operational efficiency has underpinned the dramatic rise of profits. It has allowed the fintech powerhouse Bunq to offer highly competitive interest rates in the European market.
Bunq, which is getting close to its U.S. expansion, is seeing customer adoption start to boom. The platform primarily serves the so-called “digital nomad,” individuals able to live and work remotely from wherever in the world. The bank’s major concern is with being cost effective. It is preparing to re-apply for a full U.S. banking license in the second half of this year.
Bunq recently pulled its application for a U.S. Federal bank charter due to regulatory issues. The company remains bullish on its prospects in the U.S. market. Bunq has already obtained broker-dealer authorization. Now, it intends to make almost all of its services available in the U.S., excluding savings deposits.
Bunq is doing well in other international markets. As for the bank, it continues to pursue an Electronic Money Institution (EMI) license in the U.K. This follows its suspension of service there in 2020 due to Brexit-related difficulties.
Bunq is currently in the midst of a major expansion phase. Last month, it released a new commission-free trading tool that further strengthens its robust offerings. This positive advancement is a testament to the company’s dedication to giving creative solutions to their users.
Bunq’s business model is all about luring customers who prize flexibility and tech-savvy banking options. With rapid expansion and digitization in demand spreading across markets, the company has focused on meeting the needs of an increasingly digitally-savvy customer base around the world.
“Because we are so lean and mean, and because we have set up all of our systems from scratch… we have been able to not only increase our profits, but also offer very good interest rates in the European market in general, and in the Netherlands specifically,” – Ali Niknam
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