Amsterdam-based bunq, the second largest neobank in Europe, announced that in 2023, it achieved a net profit of €53.1M, showcasing the success of its sustainable business model. The company plans to use these record profits to fuel its global expansion strategy.
bunq is expanding its reach beyond the European Union by applying for an E-Money Institution (EMI) license in the UK. This move enables the company to target the vast market, particularly the estimated 2.8 million British digital nomads.
While already fully licensed in the EU and awaiting a banking permit in the US, bunq remains committed to serving its UK users acquired before Brexit under relevant regulatory frameworks.
To re-establish its presence, bunq is set to allow UK users to open a local payment account in just 5 minutes.
Ali Niknam, founder and CEO of bunq, says, “The UK is home to the second-highest number of digital nomads globally, so naturally, we want to be there. We want to truly make their life easy, that’s why we’re excited to reintroduce bunq to the Brits and enable them to bank like a local all across Europe.”
“Bridge between Europe and the rest of the world”
bunq, which claims to be one of the early neobanks to attain structural profitability in a fiercely competitive market, has marked its first full year of bottom-line profitability.
This milestone aligns with the company’s global momentum, boasting a user base of 11 million by the end of the previous year. The neobank’s success is attributed to its proven business model, rapid deposit growth, and robust technology platform.
Bolstered by these achievements, bunq is poised to further its expansion in the UK and globally.
Niknam says, “As a bridge between Europe and the rest of the world, the UK is at the forefront of European fintech and a hugely important market for bunq. As a true tech company, it only makes sense for us to pursue this market.”
bunq’s financial growth
In the final quarter of 2023, bunq experienced substantial financial growth, with a 20 per cent increase in gross fee income compared to the same period in 2022.
The company reports that its user deposits surged nearly fourfold, soaring from €1.8B to nearly €7B by the close of 2023.
Furthermore, the gross interest income for the last quarter of 2023 also surged, witnessing a 488 per cent growth in comparison to the corresponding period in 2022.
The latest news builds on its recent announcement of the launch of Finn, bunq’s Generative AI platform. Since its inception, Finn has handled almost half a million user queries related to budgeting, transactions, and various other topics.
Brief about bunq
Ali Niknam founded bunq in 2012 after obtaining the first European banking permit in over 35 years. As the sole investor until 2021, Niknam personally financed the company with €98.7M.
This approach allowed bunq the freedom to construct a bank that prioritises the needs of its users. The company stands out as the only self-funded challenger bank that expanded into 30 European markets without relying on any venture capital funds.
Read the orginal article: https://siliconcanals.com/news/startups/fintech/bunq-reports-53m-profit/
