Revolut Secures Long-Awaited UK Banking License

Revolut, a fintech company with 45 million users, has just secured a UK banking license, a pursuit that began in 2021. The significance of this achievement is underscored by the fact that Revolut has 9 million clients in the UK. They have been operating in the EU since 2018, thanks to a partnership with Lithuania.

Prior to obtaining the UK license, Revolut was unable to offer credit products such as loans or cards, and had a less robust control over its local operations. Nik Storonsky, co-founder and CEO, is enthusiastic about the development. "Revolut will become the bank of choice for UK customers," he declares.

The implementation of these changes will not be immediate. The banking license comes with conditions—a "mobilisation" phase is required. For up to a year, Revolut will be restricted from holding more than £50,000 in customer deposits. This phase was also experienced by Monzo and Starling.

Revolut Group Holdings Ltd's subsidiary has been approved, but UK customers will continue to operate under the Financial Conduct Authority's e-money regulations for the time being.

In 2023, Revolut reported $2.2 billion in revenue and $545 million in pre-tax profit. This marks the first time in three years that they met the annual report deadline. Increased transparency may have contributed to the favorable outcome with the Prudential Regulation Authority.