Revolut Secures Banking License After Three-Year Wait

British fintech startup Revolut announced on Thursday that it has finally received a banking license with restrictions from the U.K.'s Prudential Regulation Authority (PRA), concluding a lengthy three-year application process. The license allows Revolut to begin building its banking infrastructure in the U.K. and prepares the company for an official launch of its banking operations. Revolut initially applied for the banking license in 2021 but encountered significant delays primarily due to issues with its share structure, which did not align with PRA regulations. To address these concerns, the company restructured its ownership, consolidating its six classes of shares into ordinary shares, a move facilitated by a partnership with major investor SoftBank. The granting of the banking license comes on the heels of a notable recovery in Revolut's financial performance. In July 2024, the company reported a pre-tax profit of £438 million ($545 million) for 2023, a significant turnaround from a pre-tax loss of £25.4 million in 2022. Additionally, group revenues surged by 95%, reaching £1.8 billion, compared to £920 million the previous year. With the new banking license, Revolut is now positioned to offer customer deposits, loans, and credit cards, marking a significant step in its evolution from a fintech startup to a fully-fledged banking entity in the competitive U.K. market.