Digital Bank

Revolut has finally obtained a full U.K. banking license after a lengthy regulatory process. This approval enables the fintech giant to expand its offerings, including lending services, for both retail and business customers in the UK. This milestone is crucial for Revolut’s growth strategy and its mission to become a global digital bank. The company has also applied for a U.S. banking license and aims to enter 30 new markets by 2030.

Klarna, initially known for its BNPL model, is transitioning to a comprehensive digital bank ahead of its IPO. The IPO, expected to value Klarna at up to $14 billion, will test investor confidence in this pivot. Klarna faces the challenge of convincing investors of its neobank strategy, expanding banking services despite recent losses, while showing 20% YOY revenue growth. Its success hinges on demonstrating a path to profitability in a changing economic landscape, comparing itself with public peers like Affirm.