Financial news

Amsterdam-based bunq, the second-largest neobank in Europe, has secured a fresh capital injection of €29M from the company’s existing shareholders.

Bunq’s annual report reveals that in March 2024, its shareholders signed a capital commitment letter of €29M to provide the neobank with sufficient CET1 capital for its 2024 growth ambitions. The first €16.5M has already been received before March 22nd to remain compliant with the Leverage Ratio requirements. 

The company’s shareholders, excluding Stak, have expressed their support for the company’s financial plan and growth.

Both the capital and liquidity ratios are above the regulated threshold in the forecast, reveals the report. 

Turns a profit for a whole year

The announcement comes after the Dutch unicorn reported a net profit of €53M for 2023 in its Annual Report & Financial statements. 

Ali Niknam, founder and CEO of bunq, says,  “I’m incredibly grateful to work with so many amazing people each and every day and proud of what we’ve accomplished together: being the first EU neobank to record a full year of profitability. Not because profit has ever been our main goal, but because it validates one of my core beliefs, that if you build a product that people love, your business will thrive.”

Fund utilisation, application resubmission, and more

The funds will accelerate bunq’s development strategy and ensure compliance with Dutch Central Bank regulations, reports Finnovate. 

Bunq has announced its plan to expand further in the U.K. and enter the U.S. market with the help of new capital. 

The company aims to resubmit its application for a banking license with the U.S. Office of the Comptroller of the Currency (OCC) after withdrawing it earlier this year due to issues between Dutch regulators, the OCC, and the Federal Deposit Insurance Corporation (FDIC). 

In a statement, Bunq confirmed that it is committed to resolving all differences between De Nederlandsche Bank, the FDIC, and OCC’s supervisory expectations.

This move enables the company to target the vast market, particularly the estimated 2.8 million British digital nomads. 

The Dutch neo-bank has reported significant profits in 2022 and 2023, with a triple increase in interest income. The interest income rose from €41M to €151.5M in 2023. 

Besides the milestone profit, bunq disclosed that the customer assets grew from €1.8B to €6.9B.

Finn

Last December, the Dutch neobank also launched Finn, a GenAI platform at bunq Update 24. Powered by LLMs, Finn enables bunq users to plan their finances, better budget, navigate the app, easily find transactions, and much more.

“Finn will wow you,” says Ali Niknam, founder and CEO of bunq.

Like ChatGPT, Finn features a chat-style text box where users can ask questions or seek advice about their bank account, spending habits, savings, and anything else related to money. 

Brief about bunq

Ali Niknam founded bunq in 2012 after obtaining the first European banking permit in over 35 years. As the sole investor until 2021, Niknam personally financed the company with €98.7M.

This approach allowed bunq the freedom to construct a bank that prioritises the needs of its users. 

The neobank claims this allowed it the freedom to build a bank rooted in the wants and needs of its users.

The fintech company was the only self-funded challenger bank that branched into 30 European markets without a penny of VC funds.