Fintech
Revolut finally gets UK banking license
After a three-year wait, Revolution obtained a banking license in his home country.
British FinTech announced The licence, with restrictions, was granted on Thursday (July 25) by the country’s Prudential Regulation Authority (PRA), an arm of the Bank of England that oversees the UK’s banking sector.
From here, Revolut enters what is known as the ‘mobilisation’ phase, also called ‘Restricted Authorisation’, a typical phase for many new banks in the UK.
“Nothing changes for UK customers during this period of restrictions, which is to allow new banks like Revolut to finish building their UK banking operations before they launch,” the company said in a press release. “Until then, UK customers can continue to use their Revolut e-money account as they always have.”
The company had first applied for a banking license in 2021 and had seen the process take longer than usualas Revolut has come under scrutiny over its size and issues with its financial reporting.
“Today’s announcement represents a significant step forward for Revolut and our customers,” said Francesca CarlesiCEO of Revolut UK. “It’s a huge responsibility to be a bank in the UK and we will work tirelessly to deliver products and services that improve the financial lives of everyone who uses Revolut.”
The license marks a series of successes for Revolut, which began July by announcing that its revenues were has increased by 95% last year, from $1.1 billion in 2022 to $2.2 billion in 2023.
The company also reported a record pre-tax profit of $545 million, with Revolut adding 12 million new customers in 2023, the fintech’s third profitable year, bringing its total customer base to 45 million as of last month.
This week also saw reports that Revolut was plan a stock sale which would value the company, already the world’s most valuable FinTech startup, at $45 billion.
A Wall Street Journal report said this would set the stage for an initial public offering (IPO). The company declined to comment on the sale when contacted by PYMNTS.
Assuming Revolut is ready to go public, there is no guarantee that the company will do so in its home country. Chairman Martin Gilbert recently said it was not ready to commit to an IPO in London, although it praised pending regulatory changes to listing on the UK market.
“All the moves [regulators] they’re doing well, they’re allowing founder-led companies like Revolut to list here rather than having no choice,” Gilbert said. “But again, let’s see how it plays out, the test will definitely be what happens in the future.”
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