Revolut and Nubank, two of the world’s most valuable digital banks, are intensifying their competition as they expand into the highly competitive US banking market. Both fintechs obtained conditional approval for US banking charters in 2024, with Nubank officially launching its US operations this month. Revolut, which currently maintains a limited presence, plans to scale up its US activities once it gains full regulatory approval.

The US market presents a significant opportunity, with industry experts emphasizing its size and potential to justify the companies’ substantial valuations. Revolut is valued at approximately $115 billion and aims to leverage its US growth ahead of a planned initial public offering (IPO) in 2028. Investors see the US as a key battleground; Nigel Morris, co-founder of Capital One and head of venture capital firm QED, an investor in Nubank, described the US market as “the biggest prize,” larger even than all of Europe combined.

Despite the allure, entering the US banking sector is fraught with challenges. The industry is heavily regulated at both state and federal levels and features a dense landscape of over 4,000 banks and credit unions, ranging from large Wall Street institutions to smaller community banks. Past attempts by other foreign fintech firms, such as British digital bank Monzo, to establish US footholds have struggled, with Monzo retreating earlier this year.

Both Revolut and Nubank rose to prominence by disrupting entrenched players in their home markets. Founded in 2013 as a no-fee credit card provider, Nubank has grown into Brazil’s largest private-sector lender, amassing more than 135 million customers across Brazil, Mexico, and Colombia. Supported by major investors including Berkshire Hathaway, Sequoia, and Tiger Global, the São Paulo-based company has long viewed the US as a key market for growth.

Revolut, based in London, serves 80 million customers across 40 countries and holds banking licenses in the UK and France that enable it to expand lending and compete directly with traditional banks. Revolut’s leadership has expressed strong commitment to the US market, with CEO Nik Storonsky indicating an interest in a US listing or dual listing alongside London.

Both firms are targeting niche segments in the US initially, focusing on customers who work or study abroad and need multi-currency capabilities. Revolut aims to leverage its strength in offering multiple currency accounts for international use, while Nubank offers a “global account” regulated in Switzerland, enabling global dollar- and euro-backed stablecoin transactions. However, experts caution that replicating their European and Latin American success in the US will be difficult due to entrenched consumer habits and fierce competition from established credit card providers and payment networks like Venmo and Zelle.

Nubank plans to attract US customers by offering competitive interest rates—3.5% yield on current account balances, increasing to 4.5% for credit card users—an uncommon feature among US banks. The company also seeks to build on its credit business, which has been highly profitable in Latin America, and to serve underbanked segments in the US credit card market.

Revolut’s experience is more limited on the lending side, primarily operating loans and mortgages in Lithuania, which industry analysts say could pose challenges as it scales US credit offerings. The company intends to launch checking, savings, credit, and business banking products over the next three years under close regulatory oversight, eventually expanding into mortgages.

Both banks are also eyeing the lucrative $160 billion Latin American remittance corridor, where Nubank may benefit from established brand recognition among Latin American communities, especially given its US headquarters in Miami.

Rather than pursuing aggressive marketing campaigns, both companies emphasize a methodical approach focused on market testing and adapting to consumer preferences. Observers suggest that it may take years for either fintech to gain significant traction, with sustained effort required to “crack the code” of the US financial services landscape.