- After a 3-year long wait, British Fintech startup Revolut has finally received its UK banking license from the Prudential Regulation Authority (PRA).
- Right now, the company works with a banking license from the European Union. However, since the UK is its home country, a UK banking license will open more doors for it.
- However, it’ll take some time for Revolut to get complete authorization to operate in the UK. At the time of writing, the company is in the “mobilization” stage, which comes with some restrictions.
British Fintech startup Revolut has finally received its UK banking license from the Prudential Regulation Authority (PRA) after a long three-year wait.
It’s important to note that the license has been granted to a subsidiary of Revolut Group Holdings Ltd. So, the company will not transfer its UK customers just yet but will work as an e-money institution regulated by the Financial Conduct Authority.
The news comes from Antoine Le Nel, Chief Growth and Marketing Officer & Partner at Revolut, who took to LinkedIn to share the big news.
“We are incredibly proud to reach this important milestone in the journey of the company and we will ensure we deliver on making Revolut the bank of choice for U.K. customers.” – Revolut’s co-founder and CEO, Nik Storonsky
It’s also well worth noting that Revolution already has a banking license in the European Union, which it received in 2018 with the help of the Bank of Lithuania.
However, getting a banking license in its home country UK proved to be a challenge. The company has been trying since 2021.
Not having a UK banking license greatly hindered the company’s growth, especially when it came to offering credit products, such as personal loans, overdrafts, and credit cards. Revolut can now offer all these products to its UK customers.
What Does This Mean for Revolut Customers?
Getting a license means that bigger and better things are coming for Revolut customers. However, things won’t change overnight.
Although the company has been granted authorization, it’s still in the “mobilization” stage, which comes with certain restrictions. This stage can last for a few months, but usually does not exceed 12 months.
The primary restriction during this stage is that the bank cannot hold more than £50,000 in total customer deposits.
About Revolut
Founded in 2015, Revolut has more than 45 million customers, out of which 9 million are from the UK.
In 2023, the company managed to garner $2.2 billion (£1.8 billion) in revenue and $545 million (£438 million) in pre-tax profit.
This was also the first time in three years that the company published its audit reports. This goes to show that it’s trying to be more transparent, which might have influenced PRA’s decision in its favour.
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