Revolut has finally landed a UK banking licence with restrictions from the Prudential Regulatory Authority, ending a three-year wait for the fintech firm.
With this, Revolut has now formally entered the “mobilisation stage” or “authorisation with restrictions” – the next step in the process of obtaining a full licence, which involves allowing the new bank to complete the buildout of its banking operations in the UK before fully launching in the market. Among the restrictions, the bank is allowed to hold only £50,000 in total customer deposits during this stage.
Francesca Carlesi, UK CEO of Revolut, said that receiving the licence was “a significant step forward for Revolut and for our customers”.
“It is a tremendous responsibility to be a bank in the UK and we will work relentlessly to offer products and services that improve the financial lives of everyone who uses Revolut,” she added.
While Revolut holds a European banking licence from Lithuania, it had been trying to secure a UK banking licence since 2021, where it boasts more than 9 million customers. However, the fintech company faced multiple issues with its application, including its auditors stating they could not verify its balance sheet figures for 2021.
Commenting on the announcement, Nik Storonsky, CEO of Revolut, said: “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 UK customers.”
The company recently published its financial accounts for 2023, announcing that the group’s revenues surpassed $2.2 billion, with record profits before tax of $545 million.
