Revolut, the UK’s most valuable fintech firm, has finally secured a UK banking licence after more than three years of waiting. This milestone achievement comes with some restrictions, as the company is in the mobilisation stage and will need to build its banking operations before formally launching.
The approval from the Bank of England means that Revolut can now begin to hold customer deposits, opening up new income streams for the company. This move will also allow Revolut to start funding its own-branded loans and mortgages. However, with the banking licence comes more stringent regulations, including guaranteeing customer deposits up to £85,000.
Securing the UK banking licence is a significant step for Revolut as it looks to accelerate its growth and move away from being just an e-money firm. This achievement may also open doors for approval from regulators in other key countries, such as the US.
Revolut’s founder, Nik Storonsky, expressed his pride in reaching this important milestone and emphasized the company’s commitment to making Revolut the bank of choice for UK customers. The journey to obtaining the banking licence was not without its challenges, as Revolut had to address accounting and reputational concerns following regulatory breaches in the EU, questions about its corporate culture, and delays in filing its accounts.
Overall, securing the UK banking licence marks a significant step forward for Revolut as it continues to evolve and expand its services for customers in the UK and beyond.
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