European digital bank bunq has now topped 9 million users, holding €4.5 billion in user deposits.
Bunq reported that it grew its user base from 5.4 million to over 9 million in a bit longer than one year. In the last four months, Bunq has doubled its deposit base while generating a profit.
Bunq targets digital nomads who travel abroad. To help boost its growth, Bunq announced a new cashback program providing 2% back for European transactions.
At the same time, Bunq is introducing a new savings account that generates a 3.71% interest return – in multiple currencies – starting with US dollars and British pounds.
Bunq said it is the first EU digital bank to offer up to a 2% cashback.
Bunq was founded in 2012 by Ali Niknam after he secured the first European banking permit in over 35 years. He was bunq’s sole investor until 2021, financing the company with €98.7 million of his own money. Niknam says this freedom provided bunq with the independence to build a bank rooted in the wants and needs of its users.
In July 2021 bunq raised the largest series A round ever by a European Fintech receiving €193 million in a deal with British private equity firm Pollen Street Capital, valuing bunq at approximately €1.6 billion.
Bunq claims the title of the second-largest digital bank in the EU. In February 2023, bunq became the first EU digital bank to report a quarterly profit of €2.3 million.