Dutch Neobank Bunq Expands Workforce, Targets Digital Nomads Amid Fintech Job Cuts

Dutch neobank Bunq is embarking on a hiring spree, planning to grow its global team by 70% this year. This strategic expansion contrasts with widespread job cuts across the financial technology sector, as many fintech startups struggle to maintain profitability.

Operating in multiple European Union countries, Bunq is eyeing new markets, including the United Kingdom and the United States. This expansion pits it against established fintech players like Monzo, Revolut, and Chime in these regions.

The bank is set to increase its workforce from 427 at the start of 2024 to 735 employees by year-end, a 72% surge. This growth is driven by Bunq’s global ambitions, particularly in the realm of serving “digital nomads,” a core target demographic.

A Focus on Digital Nomads

Bunq’s CEO and co-founder, Ali Niknam, emphasized the company’s focus on digital nomads, individuals who travel the world while working remotely. "We aim to provide seamless banking services to our users wherever they are," Niknam said. To achieve this, the company must navigate regulatory challenges and expand its staff.

Currently, Bunq is seeking banking licenses in both the U.S. and U.K. In the U.S., Bunq has applied for a federal banking license, while in the U.K., the company awaits approval to operate as an e-money institution (EMI).

Hiring to Support Global Expansion

Bunq’s hiring plans extend across several key areas, including sales, business development, product marketing, PR, affiliate marketing, user support, and quality assurance. Some of these roles are part of a “tailored digital nomad” program, allowing employees to work from anywhere in the world. However, Bunq will also maintain its offices in major cities like Amsterdam, Sofia, Istanbul, Munich, and New York, where many new hires will be based.

Standing Apart in a Time of Job Cuts

Bunq’s expansion stands in stark contrast to job cuts seen across the fintech industry. As inflation impacts consumer confidence and rising interest rates make it harder for startups to secure funding, many firms have been forced to reduce staff.

Major players like Coinbase, PayPal, and Klarna have all announced significant layoffs. Klarna, for instance, has leaned heavily on artificial intelligence to streamline its operations, reducing its workforce by nearly 50% in the last year.

Despite the industry trend, Bunq views AI as a tool for enhancing employee performance, not reducing headcount. Niknam noted that AI has been part of Bunq’s strategy for years, but it is used to empower staff rather than replace them. "AI helps us serve our users more efficiently, but it doesn’t mean fewer people," Niknam said.

Profitability and Future Growth

Bunq reported its first full year of profitability in 2023, with net profits of €53.1 million ($58.5 million). The bank’s valuation currently stands at €1.65 billion, as it continues to scale and expand its reach.

By targeting digital nomads and expanding into new regions, Bunq is positioning itself as a unique player in the fintech space, offering flexibility and modern solutions to a growing demographic of global travelers.