Dutch digital bank Bunq is planning to re-enter the UK to tap into the “large and underserved” market of around 2.8 million British “digital nomads”.
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Dutch challenger bank Bunq told CNBC that it plans to increase its global headcount by 70% this year to more than 700 employees, even as other fintech startups have decided to lay off employees.
Bunq operates across the EU market and is looking to expand into new regions such as the UK and the US to compete with existing fintech companies in these countries, including Monzo and Revolut in the UK and neobank Chime in the US.
Bunq said the company needs talent in these regions to support its global expansion ambitions. To this end, the company said it plans to have 735 employees worldwide this year, an increase of 72% from 427 employees at the beginning of 2024.
“Bunq is focused on digital nomads who like to roam around the world,” Bunq CEO and co-founder Ali Niknam told CNBC in emailed comments.
So-called “digital nomads” are defined as people who travel freely while working remotely, using technology and the Internet to work in hotels, cafes, libraries, co-working spaces or temporary housing abroad.
“We want to be able to serve our users no matter where they are – and given the regulatory environment we’re in, that results in us having to have a lot of extra headcount to make that happen,” Nicknan added.
Bunq is currently applying for banking licenses in the United States and the United Kingdom, and last year the company submitted an application for a federal banking license. In the UK, Bunq is awaiting a decision from the financial regulator on its application to become a licensed electronic money institution (EMI).
The digital bank said it is actively seeking talent in sales and business development, product marketing, public relations, affiliate marketing, market analysis, and user support, development and quality assurance.
Bunq said many of the positions will be part of a “tailor-made digital nomad” program that allows employees to work from anywhere in the world.
However, the company stressed that it will not be closing office space and many of the new employees will be working in its offices, including Amsterdam, Sofia, Istanbul, Munich, Paris, Dublin, Madrid, London and New York City.
Comparison with layoffs at other fintech companies
One of the biggest stories in fintech and the broader tech industry over the past two years has been companies cutting jobs to cut back on the huge spending implemented during the pandemic in 2020 and 2021.
At the same time, the operating environment for fintech companies has become more difficult, with inflation denting consumer confidence and rising interest rates making it more difficult for new startups to raise capital.
In January last year, cryptocurrency exchange Coin library 950 layoffs. Payment giants follow suit PayPalthe company laid off 2,000 employees globally in early 2023 and another 2,500 in early 2024.
At the same time, some fintech companies are looking to artificial intelligence to take on an increasing number of roles.
For example, Swedish buy now, pay later company Klarna said last month that attrition alone was able to reduce its headcount from 5,000 to 3,800 employees over the past year. The company added that it hopes to further reduce its headcount to 2,000 by using artificial intelligence in marketing and customer service.
“Our investments in artificial intelligence have enhanced our proven efficiencies of scale, which have lowered operating expenses and improved gross margins,” the company said in its first-half earnings report.
Klarna said its revenue per employee increased 73% compared with the same period last year, largely due to the internal application of artificial intelligence.
However, Bunq’s Niknam said he doesn’t see AI as a way to help companies reduce headcount.
He told CNBC: “We have been deploying artificial intelligence systems and solutions before they became mainstream, but in our experience, artificial intelligence enables our employees to do better and better with the help of users. Effective and more efficient.
Earlier this year, Bunq reported its first full-year profit, with net profit of 53.1 million euros ($58.51 million) in 2023.
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