Revolut has officially received its banking license from the U.K. Prudential Regulation Authority after a three-year wait. The London-based challenger bank applied for the license back in 2021 and has finally been granted the permission to take and hold deposits for its 9 million U.K. customers. This milestone allows Revolut to expand its offerings to include financial products like loans, credit cards, overdraft protection, and savings accounts in the U.K.
Despite the exciting news, there are initial restrictions set by the PRA. Revolut is currently in a mobilization period, during which it cannot hold more than £50,000 in customer deposits. This limit serves as a testing ground for Revolut to ensure its systems are functioning properly before scaling its operations further.
Revolut’s CEO in the U.K., Francesca Carlesi, expressed excitement about the new banking license, emphasizing the company’s commitment to improving the financial lives of its customers. With deposit insurance of $109,500 (£85,000) in place, Revolut customers stand to benefit in case of any unlikely bank failures.
Revolut initially started in 2014 as an e-money payments company in the U.K. and later obtained an E.U. banking license in Lithuania in 2018. The company’s expansion into Central Europe and Mexico has been supported by its growing banking services. Notably, Revolut operates in other regions by partnering with banks to hold customer deposits.
It took Revolut three years to secure the U.K. banking license partially due to its share structure not aligning with regulatory rules. The company restructured its ownership with the help of SoftBank and addressed IT control issues to meet the necessary requirements. This regulatory milestone puts Revolut in direct competition with other London-based banks like Monzo, N26, and Starling, all of which have obtained U.K. banking licenses.
Revolut’s CEO, Nik Storonsky, emphasized the company’s commitment to becoming the bank of choice for U.K. customers and growing its global customer base. As Revolut celebrates this achievement, it marks a significant step forward in its journey as a financial services provider in the competitive U.K. market.
Photo by Lina Kivaka
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Conclusion:
Revolut’s achievement of obtaining a U.K. banking license marks a significant milestone for the company as it continues to grow its global presence. With a renewed focus on offering a wide range of financial products and services to its customers, Revolut is set to become a prominent player in the U.K. banking sector. As the company navigates through the mobilization period and expands its offerings, customers can look forward to enhanced financial services and deposit protection. With strong competition from other U.K.-based banks, Revolut’s CEO’s commitment to making it the bank of choice for U.K. customers sets the tone for an exciting future for the company. Stay tuned for more updates from Revolut and other industry news on DeFi Daily News!
