Revolut Secures UK Banking License After Three-Year Wait
Revolut, the global fintech giant with over 45 million customers worldwide, has finally obtained a banking license from the UK’s Prudential Regulation Authority (PRA) after a three-year application process. The London-based company, which boasts 9 million customers in its home market, announced on Thursday that it has received authorization with restrictions, marking a significant milestone in its journey to become a full-fledged UK bank.
The approval puts Revolut into the ‘mobilisation’ stage, a common regulatory phase for new banks in the UK. During this period, the company will be subject to certain limitations, including a £50,000 cap on total customer deposits. This stage is designed to allow new entrants like Revolut to complete the build-out of their banking operations before fully launching in the market.
Nik Storonsky, CEO of Revolut, expressed pride in reaching this important milestone, stating, “We will ensure we deliver on making Revolut the bank of choice for UK customers.” Francesca Carlesi, UK CEO of Revolut, emphasized the company’s commitment to improving the financial lives of its users through innovative products and services.
The banking license comes on the heels of Revolut’s strong financial performance in 2023. The company reported group revenues surpassing $2.2 billion and record pre-tax profits of $545 million, demonstrating its growing financial strength and market position.
Revolut’s path to obtaining a UK banking license has been marked by challenges, including the need to restructure its share classes to comply with PRA regulations. The company has since resolved these issues, paving the way for today’s announcement.
While the restricted license doesn’t immediately change anything for Revolut’s UK customers, who will continue to use their e-money accounts as before, it sets the stage for the company to offer a wider range of banking products in the future. Once fully operational as a UK bank, Revolut will be able to provide services such as personal loans, credit cards, and mortgages, positioning it to compete more directly with traditional banks and fellow challenger institutions like Monzo and Starling.
The approval of Revolut’s banking license also solidifies its position in the crypto-friendly fintech space. The company has been offering cryptocurrency services since 2017 and recently launched a dedicated crypto exchange for its UK retail users.
