Revolut has announced it has finally been granted its long awaited UK banking licence, ending a three-year wait and constant arguments with regulators, delivering an undoubted boost to its expansion plans in the UK and further afield.
The London-based company announced it had received the licence from the Prudential Regulation Authority, which first received an application from Revolut in early 2021.
The application ran into multiple problems, including a warning from auditors that they could not fully verify revenue figures in the group’s 2021 accounts.
Revolut already has a European banking licence from authorities in Lithuania, but its prospects have hinged on securing one in Britain.
A UK banking licence will allow the fintech to widen the products and services it can offer in its biggest market.
“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,” said chief executive Nik Storonsky.
Revolut said it had received the licence from the PRA with restrictions, a status the fintech said would allow it to build out its UK banking operations before launching them.
Revolut has about 9 million customers in the UK, where it was founded in 2015, and more than 45 million globally.
The company, which was last valued at $33 billion in a 2021 fundraising round, is in talks to sell about $500 million worth of shares in a deal that would value the company at about $40 billion.
According to guidance from UK regulators, banking licences are typically awarded within 12 months following an application.
The status allows new banks to invest in the final stages of their build-outs, according to the Prudential Regulation Authority’s website.
During the 12 month period, new banks need to demonstrate they will be fully operational and address additional issues identified by the regulator before they can trade fully.
It is a major victory for Revolut, one of a handful of financial services apps to have emerged in Britain over the last decade, offering services without physical branches.
“Today’s announcement is a significant step forward for Revolut and for our customers,” says Francesca Carlesi, UK CEO of Revolut.
“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.
This is the next phase in Revolut’s journey in the UK – we can’t wait to get going.”
The post Revolut strikes gold and receives UK banking licence appeared first on Payments Cards & Mobile.