Topman Punk sees the benefits of the crisis situation mainly around banks

The uncertainty surrounding the banking sector and rising interest rates are not bad for bunq online banking, says Ali Nighnam, founder and chief executive. The company was able to turn a profit at the end of last year and therefore was not looking for external lenders who were increasingly drawn into their shells due to the crisis situation. In addition, the Dutch company attracts many new account holders who commit their money to the stock.

“We’re only getting new users and it’s going incredibly fast for us. In Europe, when things are a little uncertain, people spread their money across several banks because it comes under the guarantee system up to 100,000 euros. It’s very convenient for us,” said the founder and top manager of the bank. Explains.

Nignam’s optimistic message contrasted with the turmoil surrounding mid-sized banks in the US and the bailout of Credit Suisse in Switzerland. In the US, the tech-focused Silicon Valley bank collapsed after many customers withdrew their funds after a regulator took control and guaranteed all assets. But in the Netherlands and other European markets, Punk says he doesn’t see any negative effects of those crises.

Bunq sought publicity with a new increase in savings interest rates, rather than the big banks in the Netherlands. ING, ABN AMRO and Rabobank savers get 0.5 percent of their savings, while bunq is 2.01 percent. The company, which operates mainly digitally, says it can keep savings interest rates in line with the European Central Bank’s (ECB) sharply increased interest rates. According to Nignam, this is due in part to self-built systems, so there is no cost to external software providers.

Meanwhile, punk was growing rapidly. Customer balance at bunq rose to 2.3 billion euros, the company announced earlier this month. This is 91 percent higher than the previous year. In the last quarter of 2022, bunq posted a net profit for the first time in its existence. Bunq now hopes to grow rapidly in Germany and expand internationally, with savings and payment services as a key area.

Nignum, which is the majority shareholder, does not require additional investors in the stock. British investor Pollen Street Capital has landed a 10 percent interest in 2021, but new investment rounds have been ruled out for now. “No, we are now in profit. I no longer want to depend on external lenders,” says Nighnam. “But as an entrepreneur I would love to experience an IPO one day, but whether it’s bunq or one of my other companies is irrelevant to me.”