The UK-based fintech firm, Revolut, boasting a global customer base of 45 million, has finally procured a banking license from its domestic regulator, culminating a three-year anticipation for approval. The group announced on Thursday that it has now initiated a “mobilisation” phase that will enable the completion of its banking functionalities ahead of market launch. In the course of this operation, the UK banking validation puts restrictions in place, such as maintaining its deposits below £50,000 (€59,440).
This status permits nascent banks to invest in their ultimate stages of establishing operations, as stated on the Prudential Regulation Authority’s website. Over a 12 month span, budding banks are expected to exhibit operational readiness and rectify additional concerns outlined by the regulator prior to fully-fledged trading.
Revolut’s win is substantial, as the company is part of a small cluster of fintech applications that have surfaced in the UK over the past ten years, providing services without the need for physical branches. Revolut’s CEO, Nik Storonsky, shared his immense pride in reaching this critical milestone for the company and pledged to make Revolut the preferred bank for UK consumers.
Revolut already possesses a banking license in Lithuania, authorising it to provide banking services within the Eurozone, inclusive of Ireland. Last year, the number of clients in the Republic surged by 21%, amounting to 2.7 million, approximately half of the state’s population. The company aims to expand its Irish client base to more than three million this year.
The UK authorisation was granted less than a month post the announcement of Revolut’s recent annual results, marking the first time the company published ahead of a September deadline in three years. The earlier delays had prompted increased watchdog attention from UK regulators on the company’s licence application.
The results revealed that the group reported an unanticipated profit of $428 million (€398 million) last year, with revenues skyrocketing 95% to $2.2 billion. Revolut has indicated previously that it would initially target the domestic loans market in Lithuania. Additional data was provided by Reuters.