The news: Revolut is exploring paths that can help it expand in the US banking industry.

The company recently held talks with investment bankers about hiring them to advise on a potential bank acquisition, per Bloomberg.

Why it matters: This potential hiring underscores the urgency of Revolut’s intent to secure a US banking license. The company's experience in the UK, which took over three years and involved a mobilization phase with strict guardrails, has likely pushed it to seek a more efficient path.

By pursuing an acquisition, Revolut could bypass the lengthy application process and immediately gain the ability to offer critical services like loans and credit products. This move signals a strategic shift, hoping to buy its way into a market it's long been eyeing.

Our take: Revolut successfully fast-tracking a US banking license could light the way for other fintech players to do the same. It would redefine the competitive landscape, making banking a buy-in game rather than a build-from-scratch one.

What it means for banks: Nationally chartered banks could see more interest from fintechs or international firms that want to follow Revolut’s path. And more licensed banks means more competitors—armed with not only the agility and digital innovation of a fintech, but also the physical footprint of the banks they’re acquiring.

To combat the threat, banks will need to double down on their biggest strengths, including longstanding reputations, customer-centricity, and the personalized products and services that customers want most, like those we highlight in our “US Mobile Banking Emerging Features Benchmark 2024” report.