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Revolut Finally Secures UK Banking Licence After Years of Delays
13 Mar
Summary
- Revolut received a full UK banking licence after a three-year application process.
- The licence allows Revolut to offer lending and protected deposits up to £120,000.
- The fintech firm aims to launch current accounts for new customers soon.
Financial technology firm Revolut has officially secured a full banking licence in the UK, a milestone achieved three years after it first applied. The Prudential Regulation Authority (PRA), part of the Bank of England, granted the licence after a lengthy and complex approval process. This development empowers Revolut to offer lending services and accept customer deposits protected up to £120,000 under the Financial Services Compensation Scheme.
Founded in 2015, Revolut has garnered 13 million customers in the UK and 70 million globally, already providing payment services and trading in stocks and cryptocurrencies. The journey to obtaining a UK banking licence proved challenging, with a notable hiccup in 2021 concerning unverified revenue figures. Despite the delays, Revolut's headquarters remain in London, and the company has announced ambitious global expansion plans, including a £10 billion investment across its operations over the next five years.
Following the licence's approval, Revolut will commence the gradual rollout of current accounts to new customers. Founder Nik Storonsky emphasized this as a crucial step towards their goal of building the world's first truly global bank. The company also recently applied for a banking licence in the US and has committed significant investment to its UK expansion, planning to create 1,000 jobs.
