Revolut Secures U.K. Banking License After Prolonged Effort

Revolut, the London-based fintech company, has successfully obtained a banking license from the Prudential Regulation Authority (PRA) in the U.K., marking a significant achievement for the firm after a two-year pursuit. With a global customer base of 45 million, the U.K. market remains crucial for Revolut, which boasts 9 million clients and offers a wider array of products and services domestically compared to other regions. The company already holds a banking license in the European Union, but the absence of one in its home market has limited its ability to provide credit products and manage its infrastructure effectively. Nik Storonsky, co-founder and CEO of Revolut, expressed pride in reaching this milestone, emphasizing the company's commitment to becoming the preferred banking choice for U.K. customers. However, the transition to a fully operational bank will not be immediate. Similar to other challenger banks like Monzo and Starling, Revolut will face restrictions during this initial phase, including a cap on total customer deposits at £50,000. Until these limitations are lifted, the company will continue to function as an e-money institution under the regulation of the Financial Conduct Authority. In its latest annual report, Revolut announced a revenue of $2.2 billion (£1.8 billion) for 2023, marking the first time in three years that it has published audited results ahead of schedule. This development signals a shift towards greater transparency and maturity for the fintech, as it navigates the complexities of becoming a fully licensed bank in the U.K.