Online bank Bunq returns to the UK

Bunq Bank will move online to the UK. The bank had previously left the country due to Brexit, but has now returned. CEO Ali Niknam describes London as a “hotspot for tech companies.” FD journalist Matthijs Rotteveel said the bank mainly focuses on digital nomads, who often settle in the British capital.

This is one of the reasons that prompted the bank to open a branch in London again. “Digital nomads do almost everything online and Bonk wants to serve this group. To do that, they want to be in the hotspot for tech companies,” explains Routevel. “Because if you as a bank want to serve your customers, it also helps to have a presence in that specific country.”

Bonus rule

The fact that a number of rules have recently been scrapped in the UK, including the bonus rule, is highly coincidental, according to an FD journalist. This means that it is easier to pay variable rewards. This is very attractive for a new bank like Bunq, which is competing not only with other banks but also with many fintech companies.

“The UK has abolished these rules to attract top finance people to London. Many technology companies are paying equity packages to promising employees. CEO Ali Niknam believes that it may also be beneficial for Bunq to pay such variable bonuses,” explains Rotteveel.

Profitability

Nicknam himself does not give a clear answer to the question of whether the removal of those regulations will actually play a role in the return of online banking to London. The CEO expects that Bunq will also close this year with a profit. According to Rotfell, this is mainly due to the fact that interest rates remain high. “But a large portion of these interest rate increases have already been completed, so it is not yet possible to determine whether the Bunc will be able to maintain its own increases.”