Revolut secures UK banking licence

By Gloria Methri

Global FinTech Revolut has received its UK banking licence more than three years after applying to the Prudential Regulation Authority (PRA).

Revolut will now enter the ‘mobilisation’ stage, sometimes referred to as ‘Authorisation with Restrictions’, a common step for many new banks in the UK.

Nothing changes for UK customers during this restricted period, during which Revolut will work on building the operations required of it as a bank before launching in the market. Until then, UK customers can continue to use their e-money account as they always have.

Nik Storonsky, CEO of Revolut, said, “We are incredibly proud to reach this important milestone in the company’s journey, and we will ensure we deliver on making Revolut the bank of choice for UK customers.”

UK CEO Francesca Carlesi said, “Today’s announcement is a significant step forward for Revolut and for our customers. It is a tremendous responsibility to be a bank in the UK. We will work relentlessly to offer products and services that improve the financial lives of everyone who uses Revolut. This is the next phase in our journey in the UK – we can’t wait to get going.”

It has been an eventful year for Revolut, which recently posted record profits in its 2023 company accounts. The pre-tax profit was £438 million, up from losses of £25 million the year before. Revenues nearly doubled to £1.8 billion from £923m in 2022. The Canary Wharf-based company also added 12 million new customers last year, taking its total to more than 45 million globally.

In addition to launching its existing suite of products in more markets, in the first six months of 2024, Revolut has launched offerings such as eSIMs, RevPoints and Robo-Advisor. Having a UK bank licence will enable it to launch even more products, particularly in lending, which was limited under its previous e-money regulatory status.