The Challenge of Obtaining Banking Licenses for Fintechs
Obtaining a banking license for a fintech company can be a daunting task, especially depending on the location of the company. The process can be particularly rigorous in the UK, as exemplified by the struggles faced by Revolut. On the other hand, in the US, companies are applying for banking licenses in large numbers, with significant variations in the size of their back office teams.
The Growing Trend of Fintechs Applying for Banking Licenses
A recent report by Bloomberg revealed that at least 17 fintechs have applied for banking licenses leading into 2026. This trend is exemplified by companies like Bunq, an Amsterdam-based neobank, joining the fray. To understand the dynamics of these applications, we have analyzed LinkedIn data for 13 firms seeking banking licenses, focusing on the number of staff members in the US and their roles in risk, compliance, and operations.
One striking example is Nubank, a Brazilian neobank with a market cap of $85bn, which has a substantial workforce but only a handful of staff members dedicated to risk, compliance, and operations in the US. Similarly, Wise, a UK-based payments fintech, has a significant operations team in the US but a limited number of risk and compliance staff.
Interestingly, Fidelity’s digital assets team stands out with a comparatively large compliance team relative to its size, demonstrating a strong focus on regulatory requirements.
Challenges and Opportunities in the Fintech Landscape
While some fintechs are ramping up their hiring efforts in preparation for obtaining banking licenses, others are taking a more measured approach. Companies like BitGo and Nubank are actively recruiting for key risk management roles to strengthen their compliance functions.
Notably, Erebor Bank, led by industry executives Palmer Luckey and Joe Lonsdale, has secured conditional approval for a banking license without making public hires, indicating the diverse strategies employed by fintechs in this competitive landscape.
The Future of Fintech Banking Licenses
As Phil Goldfeder, CEO of the American Fintech Council, aptly noted, 2025 was just the beginning, and 2026 promises to be a pivotal year for fintechs seeking banking licenses. With regulatory scrutiny increasing, fintech companies are facing the challenge of balancing rapid growth with robust compliance measures.
Overall, the journey towards obtaining banking licenses is fraught with challenges but also presents significant opportunities for fintechs to solidify their position in the financial services industry.
